Saving in the Turner Industries 401(k) Plan is an easy way to prepare for your future. Some of the benefits include:

  • Automatic contributions. Because contributions to your account come directly from your paycheck, you'll be paying yourself first every payday—before you have a chance to spend the money.
  • Pre-tax contributions. This money isn’t taxed when it is put into your account, leaving more money to work for you.
  • Tax-deferred savings. Pre-tax contributions and any earnings will remain tax-deferred until you start making withdrawals—usually after you retire, when you may be in a lower tax bracket.*
  • Personal control. You decide how much to save and in which funds to invest.
  • Matching contributions. Turner will match 100% of the first 4% of your pay that you contribute to the plan. Essentially, it's free money—and that’s a deal too good to pass up.

Vanguard Institutional Target Retirement Trusts can simplify the investment process. The default investment option in the Turner Industries 401(k) Plan is the Target Retirement Trust that corresponds with your projected retirement date, based on your date of birth. A single Target Retirement Trust provides diversification and is designed to keep your money invested appropriately for someone in your stage of life, up to and including your retirement years.

Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date.

In addition to Vanguard Institutional Target Retirement Trusts, you may also select from the other investment options in the plan.

Keep in mind that although Target Retirement Trusts can simplify the investment process, whenever you invest, there's a chance you could lose the money. Each Target Retirement Trust invests in several broadly diversified Vanguard funds. Diversification does not ensure a profit or protect against a loss.

Still want more information? Check out these helpful lessons from Vanguard:

Since you are immediately vested in your employer matching contributions, you are entitled to receive your full account balance 60 days after you leave Turner Industries. You can choose from the following distribution options:

For vested account balances of $1,000 or less. Your money cannot be left in the plan, so you will receive a potentially taxable cash distribution unless you ask for a rollover within 90 days of termination. See the following entries on rollovers and cash distributions for details.

For vested account balances more than $1,000 but not more than $5,000. Your money will be rolled over automatically to a new IRA as required by IRS regulations unless you ask for a rollover or a lump-sum cash distribution within 90 days of termination. Please take action within that period so that you will have control over your distribution method and investments.

If you do not take action within 90 days, your pre-tax 401(k) money will be rolled over to a traditional Vanguard IRA® and invested in a money market fund. If you wish, you can then transfer your money to an IRA at another financial institution or roll it over to another employer’s eligible plan (if the plan permits).

There are important factors to consider when rolling over assets to an IRA or an employer retirement plan account. These factors include, but are not limited to, investment options in each type of account, fees and expenses, available services, potential withdrawal penalties, protection from creditors and legal judgments, required minimum distributions, and tax consequences of rolling over employer stock to an IRA.

For vested account balances more than $5,000. You can take a distribution or leave your money in the plan. If you take no action, your money will remain in the plan until you request a final distribution. Any earnings will continue to accumulate tax-deferred. The IRS requires that you begin taking distributions when you reach age 72.**

If you choose to take a distribution, you can:

  • Directly roll over your money to:
    • Another employer’s eligible plan. If the plan permits, you can roll over your account balance to another employer’s eligible plan. This option enables you to keep your money tax-deferred.
    • A traditional IRA. This option enables you to keep your money tax-deferred.

  • Take your money in cash as a lump sum. This choice has significant tax implications. Distributions from pre-tax accounts are generally subject to ordinary income taxes and, if you are under age 59½, usually a 10% federal penalty tax. The IRS requires that 20% of your distribution be withheld for taxes, though your actual tax liability on the distribution may be more or less than 20%.