Enrolling

Is it difficult to participate?

No, It's simple and convenient. You decide how much to invest (within applicable guidelines) and your contributions are deducted from your paycheck automatically each pay period.

How will my money be invested?

The plan is flexible. You can choose from a diverse lineup of investment options offered through your plan. Also, you can change how much you contribute, change your investment options, or stop contributing at any time.

Are there any tax advantages of participating in the Plan?

Yes, you may save money on taxes. It depends on whether you make traditional before-tax or Roth after-tax contributions (if applicable) there may be tax advantages now or later.

What if I leave my employer?

It goes where you go. If you leave your job, you can take your vested balance with you. The contributions you make are always yours.

Planning

How much should I save?

It depends on how much money you'd like to potentially have in retirement. Experts suggest you'll need 60% to 70% of your pre-retirement income in retirement. The Retirement Goal Planner calculator can help you to determine how much you want to contribute.

How much can I contribute to my account?

IRS Contribution Limits
401(k), 403(b), 457(b)

 

	2013
Maximum Limit	$17,500
Catch-up (Age 50+)	$5,500*

*Additional catch-up provisions may apply to employer-sponsored 403(b) and 457(b) plans, based on your years of service.

What if I have an account with a previous employer?

You may be able to roll your accounts over. If you have an existing retirement plan account with a prior employer, pre-tax contributions under a traditional IRA or amounts under another eligible retirement plan, such as a 401(k), 403(b) or governmental 457(b) plan, you may be able to roll over those amounts into your new plan at the time of enrollment or anytime once you become eligible to receive a contribution under the plan. Your benefits manager can help determine whether you are eligible to make a rollover at this time.

How do I rollover an account?

Contact us. If you have retirement plan assets with a former employer, you can roll them into your account with The Hartford. Speak with your benefits manager or contact us to get a rollover form. Investors should consider the impact of transfer fees, the loss of vested benefits and/or the surrender charges that may be imposed by their current plan when funds are rolled over.

With a Rollover, what is 20% automatic federal income tax withholding?

It's a tax requirement if the check is payable to you. When you request a rollover, if you request a check payable to you rather than directly rolling over your money to another eligible retirement plan or traditional IRA, by law, 20% of your taxable distribution automatically will be withheld for income tax purposes.

Investing

What is asset allocation?

It's an investment strategy. Asset allocation is the strategy of spreading specific percentages of your investment among stocks, bonds and cash equivalents.No investment strategy, including asset allocation and diversification, can guarantee a profit or protect against loss.

What is diversification?

It's an investment strategy. Diversification is the strategy of spreading your investments among different types of investments within the asset classes of stocks, bonds and cash equivalents to help reduce overall investment risk.No investment strategy, including asset allocation and diversification, can guarantee a profit or protect against loss.

What is rebalancing?

It's an investment strategy. Over time, some of your investment will go up and others will go down. If this continues, you may eventually end up with a different investment mix than what you intended. Rebalancing is the process of bringing your investments back to their original strategy. You should check your account at least annually to make sure you have the investment mix you desire. You may also want to check to see if your Plan offers a systematic investment program. With systematic investing, you select how you want to invest your money, and your account is automatically rebalanced on a frequency you select. Systematic investing does not assure a profit or protect against a loss.

What is my Personalized Rate of Return (PROR)?

Your Personalized Rate of Return (PROR) measures your account performance. It reflects the performance measure of your investments and helps you track your own account performance. The Personalized Rate of Return is a unique number, affected not only by your investment choices, but also by the activity in your account. By logging in, you can view your monthly and year-to-date PROR information.

No investment strategy, including asset allocation and diversification, can guarantee a profit or protect against loss.

Retiring

Do I need to leave my money in the Plan when I retire?

No, you don't need to leave it in the Plan. But, some Plans allow you to leave your money in the Plan. This option may be appealing if you are happy with the investment choices the plan has to offer and you want to continue to manage and rebalance the assets in this account. Remember that, the investments you choose should correspond to your financial needs, goals, and risk tolerance. You may want to speak with a financial professional about other available distribution options that may be suited to your financial situation and retirement strategy.

If I keep my money in the Plan, is there a distribution requirement?

Yes. If your money remains in the Plan, keep in mind that at age 70 ½ distributions must begin and federal and possibly state income tax withholding applies. Use the Required Minimum Distribution Calculator to determine the distribution amount you will be required to start taking at age 70 ½ from tax-deferred accounts including IRAs, 401(k), 403(b) and 457 plans and other tax-deferred plans. You may want to speak with a financial professional about other available distribution options that may be suited to your financial situation and retirement strategy. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. This information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Can I withdraw my money when I retire?

Yes, you can take a lump-sum distribution. Some retirees choose to withdraw part or all of their retirement savings at once, then invest it themselves or spend it. Such a move triggers serious tax consequences: The government withholds 20% toward income taxes immediately – and, depending on your income tax bracket, you may have to pay more by April 15. And if you're under age 59 ½ when you take this distribution, you'll be charged a 10% early withdrawal penalty to boot. In one move you may have slashed the amount of money you've saved and possibly damaged your financial prospects for retirement. You may want to speak with a financial professional about other available distribution options that may be suited to your financial situation and retirement strategy. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. This information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

Can I rollover my account when I retire?

Yes. You can rollover your account to an Individual Retirement Account (IRA). The advantage of an IRA is that you will have more investment options to choose from than those in your Plan. Use the Lump Sum vs. Rollover Analyzer to determine the impact of a lump sum distribution compared to an IRA Rollover. You may want to speak with a financial professional about other available distribution options that may be suited to your financial situation and retirement strategy. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. This information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.