401(k) Retirement Plan
The AFLC offers a 401(k) Retirement Savings Plan through John Hancock for all eligible employees. See AFLC Summary Plan Descriptions (SPD) for details concerning participant eligibility. Contributions to a 401(k) plan are made with “pre-tax” dollars, grow tax-deferred during the accumulation phase and are taxed as ordinary income upon distribution in retirement. Because the AFLC Retirement Savings Plan is “denominationally sponsored” some portion of distributions received by Pastors in retirement will qualify for “housing allowance” and not be subject to ordinary income taxation. Pastors in a Retirement Savings Plan sponsored by a single church do not receive this same tax-favored treatment. Please contact your Certified Public Accountant or other tax professional for details regarding “housing allowance” for pastors.
Roth 401(k) Retirement Plan
The AFLC offers a ROTH 401(k) Retirement Savings Plan through John Hancock for all eligible employees. See AFLC Summary Plan Descriptions (SPD) for details concerning participant eligibility. Contributions to a ROTH 401(k) plan are made “after-tax” dollars and are limited to elective employee contributions. Employer metching contributions cannot be invested in a ROTH 410(k) account! Contributions into a ROTH 401(k) grow tax-deferred during the accumulation phase and carry no income tax liability if distributions begin after age 59 1/2. Please contact your Certified Public Accountant or other tax professional for details regarding whether such an account is appropriate for your individual situation.
Making Saving for Retirement Simple
Set Retirement Income Goal….The most important decision people make in saving for retirement is the decision to begin saving. Determining a future retirement income goal helps you select the appropriate level of savings for today! Most people will need a minium of 75% of their current income in retirement.
Choose Appropriate Investments…. Investment options in the AFLC Retirement Savings Plan address the varied needs of plan participants. For those with limited investment experience or interest in managing their individual portfolio you have an array of “Asset Allocation” funds to choose from. Simply choose the allocation fund that best matches your individual temperment for investment risk and begin making contributions. If you want to manage your own portfolio you have the ability to choose from a wide range of individual funds both domestic and international. If you have questions about saving for retirement, please contact the AFLC office at 763-545-5631.
Monitor Progress Annually…. Each year review progress to your retirement income goal. You may need to make changes to the amount you are contributing or the type of investments you are using. Seek the help of a financial professional if you need assistance in this process.
Getting Started (complete forms below)
John Hancock Enrollment Kit
John Hancock Enrollment Web Site (Call AFLC Business Office for Access Number)