WoodmenLife Associates at the Gym

401(k)

401(k) Match*

WoodmenLife currently provides a dollar for dollar match, up to 5%, for those eligible. 

Coupled with the below referenced Service-Related Contributions, an eligible participant with at least one of year of service, taking advantage of the full match opporunity after January 1, 2019 would be receiving an employer contribution of 6.5%. 

Service-Related Contributions*

For eligible participants, WoodmenLife will match your contribution, dollar for dollar, up to 5% of your eligible compensation.  In addition to the matching contribution, WoodmenLife will make a service-related contribution based on your years of service:

  • 1-5 years: 1.50%
  • 6-14 years: 3.00%
  • 15 years+: 6.00%

You receive the above contributions regardless of the percentage you are personally contributing.

*If you elected into the WoodmenLife pension plan (this option was not available for assoicates who joined WoodmenLife after 2006), you may participate and make contributions to the 401(k) plan, but you will not be eligible for the matching and service-related contributions.

Vesting

The money you contribute to your 401(k) always remains 100% yours. WoodmenLife’s contributions will be available to you based on your years of service. For each year of service, you increase your vesting percentage by 25%.

  • One Year: 25%
  • Two Years: 50%
  • Three Years: 75%
  • Four Years: 100%

Pre-Tax v. After-Tax

You can elect to have your contributions be pre-tax which will reduce your taxable income and you will pay less is taxes today or after-tax (Roth), which you pay current federal, state and local taxes today.

There are many variables to consider when determining what type of contributions make sense for you. The three main factors to include in your decision process: 1. Your current tax rate, 2. Your expected tax rate in retirement, and 3. The length of time until you retire.

Generally, if you think you will be in a higher tax bracket at the time you withdraw your contributions, then Roth contributions may be right for you. If you expect to be in a lower tax bracket during retirement, then pre-tax contributions may be the way to go. An option you do have is to contribute both pre-tax and Roth, since it can be hard to predict the future.

You can contribute 1-100% of eligible compensation (up to Internal Revenue Service plan limits) into your 401(k) plan. For 2019, the contribution limit is $19,000. If you are age 50 or older, you may qualify to make “catch-up” contributions; and the limit for 2018 is $6,000. These limits may be indexed annually.