Many IAM members have asked for a way to put aside their own money for retirement, which they can do on a tax-advantaged basis through the IAM National 401(k) Plan. The plan is a valuable complement to the National Pension Plan, Social Security, and the other investments and savings participants may have for retirement.
Here are highlights of the plan:
- Contributing to your account. If you choose to participate, you set aside your own money for retirement. You can contribute 1% to 50% of your eligible pre-tax pay, up to IRS-defined limits. After-tax contributions (up to 15%) are permitted. Participants age 50 or older can make additional "catch-up contributions," up to IRS-defined limits.
- Investing your contributions. You can invest your contributions in a number of investment options, and you can change your investment elections at any time. The plan also provides you with access to personalized retirement planning advice from qualified advisors.
- Tax-favored treatment. Your balance (your contributions plus investment earnings) grows on a tax-deferred basis. Your contributions and investment earnings are taxed only on withdrawal, as governed by federal regulations.
- Accessing your account. Prior to retirement, you can access your account through loans or through hardship withdrawals (if your hardship meets the plan's requirements). In addition, at age 59 ½ and after, you can make withdrawals with no penalty while you are still working in covered employment. You can withdraw your after-tax contributions (if any) at any time.
John Hancock Retirement Plan Services is the recordkeeper for the the IAM National 401(k) Plan.
If you have questions or want to access your account, go to mylife.jhrps.com or 833-388-6466. Representatives are available from 8 a.m. to 10 p.m. Eastern Time on New York Stock Exchange business days. For your protection, all calls are recorded. When you contact John Hancock for the first time, you’ll be asked to provide your Social Security number and date of birth so that you can create a Personal Identification Number (PIN)/Password.
If your employer is not participating in the IAM National 401(k) Plan, talk to your IAM representative to learn more about how to negotiate the plan into your contract. After the plan is negotiated into your collective bargaining agreement, you will be eligible to participate immediately after acceptance is completed.