Q: I want to add my own money through payroll deduction into the 401(k) Fund. How do I do this?
A: Please contact the Trust Fund Office and we will send you a 401(k) Contribution Worksheet. You can indicate on the form how much per hour you want your employer to take out from your paycheck. Please forward the completed form to the Trust Fund Office, and we will coordinate the payroll deduction with your employer.
Q: I am currently putting in $1.00 per hour into the 401(k) Fund, and would like to change it to $3.00 an hour. Can I do this?
A: Yes. You can change your hourly employee contribution rate once a month. Please submit a new 401(k) Employee Contribution Worksheet to the Trust Fund Office with your new hourly rate, and we will coordinate the change with you employer. The new rate will be effective on the first pay period of the following month.
Q: How much can I put into the 401(k) Fund?
A: For 2012, you can put up to $17,000. If you are 50 years old and over, the maximum amount is $22,500. These amounts are the maximum limits for employee contributions only. They do not include the $1.50 per hour employer contribution.
Q: If I start my employee contributions in January 2009, how much should I deduct from my paycheck to achieve the maximum limit?
A: If you work 40 hours a week for 52 weeks (the entire 2009), you can deduct about $7.00 per hour from your paycheck, and you will have close to $15,000 at the end of the year. If you are age 50 or over, you can deduct about $10.00 per hour to achieve the maximum limit of $22,000 at the end of the year.
Q: What happens if I go over the limit before the end of the year?
A: First of all, Prudential and the Trust Fund Retirement monitor the deposits and the year-to-date totals. As you get close to the maximum, we will notify you and the employer to ensure that you do not exceed the maximum amount.
Q: Oh no! It's already December, and I have not put anything into my 401(k) Fund! Can I write a check from my checking account for $15,500?
A. No. The employee portion of the 401(k) Fund must come through your wages via payroll deduction because the contribution is tax deductible. If the money is already in your checking account, it is considered 'after-tax' money, therefore it cannot be deposited into your 401(k) Fund. January 2008 is the perfect time to begin your new payroll deductions.
Q: Can I put my Vacation & Holiday check into the 401(k) Fund?
A: No. The V&H pay is considered after-tax money, which means that taxes have already been paid. Therefore, this type of money cannot be deposited into the 401(k) Fund. As previously mentioned, employee contributions must come directly from wages through payroll deduction.
Q: I'll be working for a new employer soon. Do I need to complete a new form?
A: If you want to continue your payroll deduction, yes, you have to complete a new form. You need to complete a new form each time you move to a new employer.
Q: Can I take this money out at any time?
A: If you are under 55 years of age, you have to have no work hours from any signatory contractor for 12 consecutive months to take out your 401(k) monies. If you are age 55 - 64, you have to have no work hours for 6 consecutive months. If you are age 65 and over, it's no work hours for 1 month. (Please refer to the Fund Booklet for more details.)
Q: What if I am going through a hardship in my life, can I take the money out earlier?
A: The 401(k) hardship provision only applies to employee contributions that were deducted from your paychecks. They do not apply to the $1.50 Employer Contribution. And per IRS regulations, hardship withdrawals are only allowed for the following reasons:
- Medical care expenses not covered by insurance carrier
- Purchase of primary residence
- College tuition fees
- To prevent eviction from principal resident or to prevent foreclosure on a mortgage
- Burial or funeral expenses
- Expenses related to catastrophic events as described in IRC 165
You will need to provide the Trust Fund Office with proper legal documentation to support the hardship that applies to you.
Q: I am an apprentice that recently got indentured under the Carpenters Union. When will I start receiving 401(k) contributions from my employer?
A: You have to be at least a 45% apprentice and/or work 1,000 hours to receive a 401(k) contribution from your employer. Your employer will contribute $1.50 per hour into your 401(k) Fund once you are eligible.
Q: When can I start putting in my own money through payroll deduction?
A: You have to be at least a 45% apprentice and/or work 1,000 hours to make employee contributions into the 401(k) Fund.
Q: Can I transfer my old retirement plans from prior employers, or my IRA into the Hawaii Carpenters 401(k) Fund?
A: Yes, as long as these retirement plans contain only pre-tax monies. There is no eligibility requirement for rollover contributions. You can do this at any time. Please contact the Trust Fund Office to coordinate the rollover process.
Q: Can I take my rollover money out of the 401(k) Fund at any time?
A: Yes. There is no waiting for the rollover portion of your 401(k) Fund. You can take it out at any time.
Q: How can I change the investments in my 401(k) Fund?
A: You can change your investments by going online at www.prudential.com/online/retirement. If you do not have your password, you can register online and designate your own User ID and Password. Or, you can make investment changes by calling the toll-free number at 1-800-PRU-2100. Press your SSN, then follow the prompts to create a new PIN.
Q: Help! I don't know which investments to pick! I need guidance.
A: The Prudential website has several educational tools and calculators that can assist you with your investment choices. Or, you can opt to speak to a live Prudential representative when you call the toll-free number.
Q: I want to talk to someone locally about my investments. Who should I call?
A: For general investment questions, you can call the Trust Fund Office at (808) 841-7575, or at (800) 634-8608, if you are calling from the neighbor islands. For a more in-depth investment advise for FREE, you can call the following:
Karen Yasukawa, CIMA
UBS Financial Services, Inc.
733 Bishop St., Suite 1600
Honolulu, HI 96813-4068
Toll free: 800-342-2828
Q: Are there fees associated to making investment changes?
A: There are no transaction fees for moving your money from one investment vehicle to another.
Q: Are there any other fees charged to my 401(k) Fund?
A: There is a $60 annual administrative fee that is charged to your account at $15 per quarter. This amount pays for all legal, accounting, and administrative fees associated with maintaining the 401(k) Fund on a daily basis.
Q: I just recently received my quarterly 401(k) statement from Prudential. My hours and contribution amounts do not match what I have on record. Why?
A: Please keep in mind that the contributions you see on your statements were deposited into your 401(k) account approximately four-six weeks after they have been deducted from your paycheck. For example: The contributions reflected on the June quarterly statement are for the work months of February, March, and April.
Q: Even after taking the timing issues into consideration, I still found discrepancies with my hours and contribution amounts. What should I do?
A: It is for this reason that we cannot emphasize enough the importance of keeping a good record of your work hours and pay stubs. Should you find any discrepancies, please forward your inquiry and copies of your pay stubs to the Trust Fund Office so that we may audit the contributions. If we find your claims to be true, we will notify the employer accordingly and charge them for any missing contributions when necessary.