Everyone knows that a financially secure retirement doesn’t happen overnight; it requires careful planning. But a lot of people are put off by what they think will be a complicated process. That is why we’ve gone out of our way to make enrolling in the BAYADA Home Health Care 401(k) Plan as straightforward and understandable as possible.
You can participate if you:
- Are aged 21 or older
- Have completed 1 year of service
- Have completed 1,000 hours of service during your first year of employment or any following calendar years
The BAYADA 401(k) Plan makes saving simple. It features:
- Employer contributions that can help boost your own savings—it’s like getting a bonus.
- GoalMaker®— an investment solution that helps you choose your investments and stay on track throughout your retirement planning.
- Automatic payroll deductions make saving easy.
- Wide array of investment options enables you to develop a strategy that best suits your needs.
- Interactive tools (such as the Retirement Income Calculator) to help you manage your account and access retirement planning and education.
Your contribution and investments
As of April 1, 2019, BAYADA has added a Roth feature to the 401(k) plan. You can now contribute anywhere from 1% to 100% of your weekly pay on a pre- or post-tax basis, up to the IRS maximum of $19,00 in 2019 (with the exception of Highly Compensated Employees (HCEs), capped at 4% in employee contributions).
What is the difference between traditional pre-tax contribution and Roth after-tax contributions?
Traditional pre-tax contributions come out of your pay before taxes are deducted, so you can save on your taxes now. Every pre-tax dollar you contribute costs less than $1.00 in take-home pay. Roth contributions come out of your pay after taxes have been withheld. Your take-home pay is reduced by the amount you contribute, but your contributions are never taxed again and any investment earning won’t face federal taxes as long as you hold the account for 5 or more tax years from your first contribution or 5+ years from January 1 of your first contribution.
If you are or will be at least 50 years old in 2019, you can make an additional pre-tax or post-tax catch-up contribution of up to $6,000 per year per the IRS 2019 maximum.
- Go to prudential.com/online/retirement, or call 877-778-2100.
- Tips and tools for retirement planning Prepare with Pru website
- 401k Fact Sheet
- Roth Brochure
- BAYADA Home Health Care 401(k) Summary Plan Description 2019
- In order to set up an account rollover (shell account) prior to meeting the eligibility requirements, please contact the Benefits office at 877-291-3000.
- If you have met the eligibility requirements and would like to rollover funds from a previous 401(k), please contact Prudential’s rollover line at 800-249-2430.
Each year, BAYADA may make matching contributions to your 401(k) account on your behalf. In the past, these contributions have been equal to 35% of the first 4% of eligible pay that you contribute to the 401(k) plan. To be eligible for the match, you must work at least 500 hours during the year. Catch-up contributions are not matched. The annual match is deposited into your account during the first quarter of each year. Your matching contribution is based on your contributions made after becoming eligible.
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