401(k) Plan

Effective July 1, 2024, Our 401(k) Plan, administered by ADP, helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.

Note: If you are temporary, seasonal, and/or enrolled in the Tennessee Consolidated Retirement System (TCRS) pension plans, you are not eligible for the 401(k).”

Why Participate?

  • Company matching contributions: If you do NOT participate in the TCRS pension plan, IOTA Community Schools matches 100% of your contributions to the plan, up to 4% of your eligible pay, after one year of employment and 1,000 hours — that’s free money to help build your retirement savings!
  • Two contribution options: You can make before-tax contributions (for current tax savings), Roth 401(k) after-tax contributions (for future tax savings), or a combination of both.
  • Wide range of investment options: Customize your own portfolio or keep it simple by choosing a single ADP target-date fund.
  • Convenient payroll deductions: It’s easy and automatic to build the savings you’ll need for your future.

How to Enroll

More details to come, stay tuned!

IOTA Community Schools 401(k) Contributions

To support your retirement saving efforts, IOTA Community Schools matches 100% of your contributions to the plan, up to 4% of your eligible pay, if you do not participate in TCRS and after you complete 3 months of service, beginning with your date of hire and ending with your date of hire anniversary.

When Can I Participate in the 401(k) Plan?

Eligibility on when matching occurs is TBD. To enroll, visit ADP. More details to come, stay tuned!

Catch Up!

It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in 2024.

Have You Named a Beneficiary?

It’s important to designate a beneficiary to receive the value of your 401(k) account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up-to-date. Visit ADP to add or change a beneficiary.

Your 401(k) Contributions

You may contribute between 1% and 100% of your eligible pay to your 401(k) Plan account, up to annual IRS limits.
  • The current IRS annual contribution limit is $23,000. You can make additional catch-up contributions of up to $7,500 if you’re age 50 or older this year.
  • These limits apply to your before-tax contributions and Roth 401(k) after-tax contributions combined. What’s the difference?

Manage your 401(k) account

Visit the ADP website to manage your 401(k) account:

    • Check your balance.
    • Change your contribution rate.
    • Manage your investments.
    • Update your beneficiary.
    • Use planning tools and calculators.
    • Access forms and documents.

Vesting

Vesting is another way of saying “how much of the money is yours to keep if you leave the company.” You are always 100% vested in your own contributions, including any investment gains and losses on the money. You are 100% vested in the matching contributions you receive from IOTA Community Schools after you complete one year of service.

401(k) Tools and Resources

Besides access to online transactions and account information, your plan’s website offers a wealth of planning resources. Visit ADP for:

  • Details on all your investment options, including current prices and historical performance.
  • Online account statements covering any time period you specify (up to 24 months) and featuring your personal rate of return.
  • Online tutorials on everything from investing basics to retirement income planning. These are self-guided modules you take at your own pace. They can make plan participation a more rewarding experience and you a more educated investor.
  • The ADP Take Home Pay Calculator shows how affordable it can be to invest in your plan. Simply enter the amount you might want to contribute on a before-tax basis and see how it impacts your pay. You’ll find it in the Library on NetBenefits.

Withdrawals and Loans

The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age.

For assistance, call the ADP Retirement Benefits Line.

Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Call for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Please read them carefully. Investing involves risk, including the risk of loss.