Here are a few things effective January 1, 2017 that you should know about your 401K plans.
- Interest Account Rate for 2017
The 2017 interest rate for the National Life Interest Account will not change. It will remain at 3.10%. This rate is reviewed and subject to change annually. This rate is applied to all money in the interest account only, and does not pertain to money in mutual funds. Please remember that funds in this account are assessed an administrative fee of 10 basis points (0.1%) annually.
- 2017 Deferral Limits
Employees can contribute up to $18,000 for 2017.
- Catch-Up Contributions
Employees age 50 and over can contribute up to an additional $6,000 catch-up contribution. If you have made catch-up contributions in the past and want to continue at the same rate, you do not need to take any action this year.
- Annual Recognizable Compensation
The maximum annual recognizable compensation for 2017 is $270,000.
- Prudential Retirement
As a reminder, the National Life Group 401(k) Plan has moved to Prudential Retirement. You can log onto the Prudential Retirement portal at www.retirement.prudential.com. If you have any questions, please feel free to call them at 877-778-2100 with any questions.
- Beneficiaries
If you haven’t completed your beneficiary information on the Prudential Retirement portal, you will want to log into your account to choose your beneficiaries.
If you have any questions regarding any of this information, please email Lorriane Bishop mailto:lbishop@nationallife.comor call me at 229-3177.