What is a 401(k)?
What is a 401(k)?
- 401(k)s, such as the Vista 401(k), allow employees to plan and save for retirement. The employee decides how much money they want to contribute from their paycheck.
- The earlier you start contributing to the Vista 401(k) Plan, the better your outcome at retirement. Contributing through payroll also makes contributing painless.
- Most 401(k) plans are for private employers. You are fortunate enough to have a public employer 401(k) that is grandfathered.
Q: How long is the waiting period?
A: There is no waiting period; unlike other 401(k) plans you can start securing your retirement future beginning with your first available paycheck
Q: What is the minimum contribution amount?
A: The minimum contribution is only $25.00 per pay period or a mere $500.00 per year
Q: When can I receive my plan money?
A: Withdrawals are regulated by the IRS. You may withdraw when you have reached 59.5 years of age or have terminated your employment.
Q: When do I have to receive payments?
A: When you are 72 years old the IRS requires you begin taking required minimum distributions (RMD). RMD age has increased from 70½ to 72, applicable to distributions made after Dec. 31, 2019, for individuals who reach 70½ from Jan. 1, 2020 on. This is the minimum amount you must withdraw from your retirement account(s) each year. The Vista 401(k) Plan processes your RMD automatically at no additional cost.
Q: What is the maximum contribution amount?
A: The contribution limit for 2020 is $19,500 for folks under 50 years old and an additional $6,500 for folks 50 years old or older.
Q: Can I change my contribution amount?
A: Of course! You can change your contribution. The Vista 401(k) Plan allows you to change your contributions including starting or stopping contributions at any time.
Q: Do I have to take out the money when I retire?
A: Absolutely not! Unlike many 401(k) plans, this plan encourages you to remain invested after retirement. We can continue to offer you a low-cost plan with mutual funds designed to meet your retirement needs.
Q: Who is the plan designed for?
A: Active, Full-Time School Board employees and for later on, retired School Board employees.
You do not pay any income tax on the contributions made into the 401(k) Plan. 401(k) contributions are taken from your paycheck before taxes are deducted. By funding your 401(k), you lower your taxable income. Also, the gain, interest and dividends are also tax deferred until the money is withdrawn.
Account funds invested can gain value and your 401(k) holdings are portable. If you change jobs, the Vista 401(k) Plan allows you to rollover your account into your new employer’s retirement plan, an IRA, or some other qualified retirement vehicle. If you employment with the school board, you are allowed to maintain existing funds in the 401(k) plan.
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To enroll, please click the Open Account box on the top of the page. This will take you step by step through the enrollment process, including setting up your online account User ID and password.
You may also contact our office at 1-866-325-1278 to request an enrollment packet to be mailed to your home address.