About the Plan

Plan highlights

Get to know the details and benefits of your plan, and explore ways to make it work harder for you.

Introduction

Whether you plan on traveling, taking up a new hobby, or spending more time with family, it’s a time we all look forward to—and it will take money to do it. Luckily for you, the Teamsters-National 401(k) Savings Plan (the “Plan”) is a great way to save for your future plans, whatever they are. Current tax savings through pre-tax contributions, potential tax-deferred growth on your account, and a variety of investment options are just some of the Plan’s features.

Eligibility and Enrollment

To participate in the Plan, you must be an eligible employee working regularly scheduled hours and on a payroll of an employer that has executed a Participation Agreement. For the definition of an “Eligible Employee,” contact your employer, or call 877-778-2100.

• If you are employed in an eligible position at the time your employer begins participation in the Plan, you are immediately eligible to participate in the Teamsters-National 401(k) Savings Plan.
• If you are newly hired into an eligible position by an employer that is already participating in the Plan, you must wait 30 days following your employment commencement date before beginning participation in the Plan. Upon completion of the 30-day waiting period, you automatically become eligible to participate in the Plan.

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Contributions

• You may make pre-tax contributions totaling 1–89%* of your eligible pay, up to $22,500 in 2023.
• If your employer’s participation agreement permits, you may make Roth after-tax contributions. Your Roth after-tax and pre-tax contributions are aggregated for purposes of the limits described for pre-tax contributions.
• You may make after-tax contributions totaling 1–5%* of your eligible pay.
• If you are age 50 or older by Dec. 31, 2023, you may make an additional catch-up contribution of up to $7,500 in 2023.
• Rollover contributions from qualified retirement plans are accepted into the Plan at any time.
• You can increase or decrease your contribution rate once every 90 days. In addition, you can reduce your contribution rate to zero and stop making contributions entirely at any time (i.e., before 90 days have elapsed since the last change to your contribution rate). If you wish to resume making contributions to the Plan after you have reduced your contribution rate to zero, you must wait 90 days from the date on which you elected to stop your contributions entirely.

Directing contributions

• You may change how your future contributions are invested on a daily basis.
• You may move existing account balances among the various investment options in the Plan on a daily basis.

Vesting

Generally, your account is 100% vested. This means that no matter how long you stay with your employer, you are entitled to the full value of your account when you leave. You are always 100% vested in your elective deferral contributions, after-tax contributions, and rollover contributions. Unless stated otherwise in your employer’s Participation Agreement, your combined employer contributions will be 100% vested at all times. Employers can elect the use of a five-year graded vesting schedule for matching and/or nonelective contributions.

Withdrawals

Prior to age 59½, you may take a hardship withdrawal for the following reasons:

• Purchase of a primary residence
• Repair of casualty damage to your primary residence
• Qualified postsecondary education expenses
• To prevent eviction from or foreclosure on your primary residence
• Unreimbursed medical expenses
• Burial or funeral expenses for parents, a spouse, children, or dependents
• Expenses and losses (including loss of income) incurred by the Participant on account of a disaster declared by FEMA if the Participant’s principal residence or principal place of employment at the time of the disaster was located in an area designated by FEMA for individual assistance with respect to the disaster

Withdrawals of any rollover money in your account and after-tax contributions are allowed at any time.

When you have reached age 59½ or older, you may make withdrawals of your pre-tax contributions without incurring a penalty—even if you are still working for your employer.

Loans

You may borrow up to 50% of your account balance, if available. There is a minimum of $1,000 and a maximum of $50,000. There are two types of loans:

• General purpose
• Purchase of a primary residence

You may have one loan outstanding at any time.

• Repayment of your loan plus interest is made through after-tax payroll deductions.
• You have up to 60 months to repay a general purpose loan and up to 360 months to repay a residential loan.
• You must repay the loan in full within 90 days after termination or it will be considered a taxable event, subject to all current taxes and any early withdrawal penalties.
• A $75 one-time processing fee (per loan taken) is charged to your account. A $25 annual maintenance fee also applies.

Note: Loan availability is based on each employer’s Participation Agreement. Call 877-778-2100, or check with your employer to see if you are able to take a loan from this plan account.

Distributions

When you retire or leave your job, you will need to decide what you want to do with your savings in the Teamsters-National 401(k) Savings Plan. Your options include:

• Leaving your money in the Plan, up to age 72.
• Taking a lump-sum distribution.
• Rolling over your plan assets to an Individual Retirement Account (IRA) or another qualified plan.

Distributions from the Plan may be subject to 20% federal tax withholding, and a 10% penalty may apply, if under age 59½.

The Teamsters-National 401(k) Savings Plan offers you a diverse investment lineup to meet your needs, with flexibility to tailor your investment strategy.

Available Investment Asset Classes

The core funds are aimed at investors who are comfortable creating their own mix of investments from a focused menu of choices. By covering all the major asset classes, the core funds allow you to mix and match investments to create a well-diversified portfolio to suit your individual risk tolerance and goals.

Core Funds

• Stable Value
• Fixed Income—Domestic
• Fixed Income—High Yield
• Fixed Income—Speciality
• Balanced—Target Date
• Balanced—Blend
• Large-Cap Stock—Value
• Large-Cap Stock—Blend
• Large-Cap Stock—Growth
• Small-Cap Stock—Value
• Small-Cap Stock—Growth
• International Stock—Blend

Other

• Target-Date Funds
• Self Directed Brokerage Account^¶

BNY Mellon Capital SmartPath Target Date Funds

The BNY Mellon Capital SmartPath Target Date Funds include six options—five of them are managed to specific target retirement dates (2020, 2030, 2040, 2050, and 2060), and the sixth one, BNY Mellon Capital SmartPath Retirement Income Fund, is designed for individuals who are at or near retirement. The target date is the approximate date that you intend to start withdrawing your money. Reflecting the fact that many investors decrease their risk tolerance as they near retirement, a Target Maturity Fund’s allocation gets more conservative by lessening equity exposure and increasing exposure to fixed income-type investments as it approaches its listed target date.

Each SmartPath Target Date Fund is managed by professionals who monitor the funds daily to help ensure the investments are appropriately allocated based on the indicated target date. For example, someone planning to retire on or around the year 2030 might consider selecting the SmartPath Target 2030 Fund. As the target date nears, the investment mix of the SmartPath Target Date Funds automatically becomes more conservative. Remember, the principal value of an investment in a target-date fund is not guaranteed at any time, including the target date.

Self-Directed Brokerage Account

This option may be appropriate for experienced investors who are willing to take on more risk and wish to research and select from thousands of exchange-traded stocks or bonds and over 9,000 different mutual funds. You will need a minimum account balance of $2,000 to open a self-directed brokerage account (SDBA). Both initial and subsequent transfers to the SDBA must be $1,000 or more. A minimum of 50% of your total balance must remain invested in the core account. If you believe an SDBA can play an important role in your investment strategy, call 877-778-2100 to request an SDBA package.

There is a $100 annual fee for an SDBA. Depending on the specific activity within your account, you may incur trading fees—which are deducted from your account at the time such activities take place.

Account Access

Accessing your account is easy. Whether you choose to go online or pick up the phone, it’s all at your fingertips. To access your account online, click here. Or call toll-free 877-PRU-2100 to access your account by phone. Participant service representatives are available weekdays, from, 8 a.m. to 9 p.m. ET.

This information is just an overview of the Teamsters-National 401(k) Savings Plan features and is not intended to contain all information about the Plan. Please see your Summary Plan Description for additional information.

*Subject to the terms of your employer’s Participation Agreement.

Any outstanding loan balance not paid back at termination becomes taxable in the year of default. Under the Tax Cuts and Jobs Act of 2018 for defaults related to termination of employment after 2017, the individual has until the due date of that year’s return (including extensions) to roll over this amount to an IRA or qualified employer plan.