We’re adding a new feature to the National Life Group 401(k) plan to help you save for your retirement. It’s called Contribution Accelerator, and it will automatically increase your contribution each year.
These increases will hardly make a dent in your paycheck, but their effect on your savings could be powerful. Best of all, you don’t have to do anything to take advantage of this savings. Your contribution rate is scheduled to increase 1% every March 1 until it reaches 12%.
You are not required to participate, and you can make changes or opt out at any time by logging into your Prudential Retirement account.
Contribution Accelerator only applies to your pre-tax contributions. If you contribute on both a pre-tax and Roth basis, only your pre-tax contribution will be increased until it reaches 12%.
If you are currently contributing 12% or more and want to continue increasing your rate, you can still do so until you reach the plan limit of 50% or the IRS limit for 2018 of $18,500 ($24,500 if you are age 50 or older).
If you are currently contributing using only Roth contributions, your Roth contributions will not be automatically increased. You can elect to have your Roth contributions automatically increased each year by contacting Prudential.
If you are currently not participating in the 401(k) plan, you will not be affected by the Contribution Accelerator. If you would like to start contributing and receive the company match, log into your Prudential Retirement account. You can start with as little at 1%.
If you wish to opt out of or make changes to Contribution Accelerator, log on to www.retirement.prudential.com select Contribution Rate, and make your choices, or you can call Prudential Retirement at 877-778-2100 and say Change Contribution Rate when prompted.
Please remember this is automatic unless you log in or call Prudential to opt out.
Please contact Lorraine Bishop or Michele Granitz with questions.