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Humana Retirement Savings Plan Highlights
You may contribute up to 35% of your compensation pre-tax, to a maximum of $18,000 in 2016.
Your plan includes a Roth 401(k) option. You may contribute up to 35% of your after-tax compensation into the Roth account. Federal law limits the dollars you can contribute every year. The 2016 limit of $18,000 for 2016 is a combined limit for pre-tax and Roth 401(k) contributions. The Roth calculator (workplace.schwab.com) can assist you in determining if Roth 401(k) contributions are right for you. You will also want to review the Roth 401(k) Frequently Asked Questions.
If you decide to make Roth 401(k) contributions, your contributions and any potential earnings may grow tax-free, and you will not pay taxes on the money when it's withdrawn—provided that any distribution from the plan account occurs at least five years following the year you make the first Roth 401(k) contribution, and you have reached age 59½ or have become disabled.
If you will be age 50 or older by the end of the calendar year, you may make additional "catch-up" contributions (pretax and/or Roth 401(k)) to the HRSP. For 2016, the IRS "catch-up" limit is $6,000.
You may make after tax contributions of up to 2% of your compensation each pay period. After-tax contributions are not subject to the annual limit. You will pay taxes on any potential earnings when the money is withdrawn.
In-Plan Roth Conversion
The Plan offers you the option to convert savings you previously made to your account as pre-tax contributions to Roth 401(k) contributions. Any taxes are due in the year of conversion, and any converted money will share the same tax benefits as the Roth 401(k) contributions described above, as long as certain requirements are met. Contact your tax advisor to discuss your situation. If you and your advisor decide that converting to Roth 401(k) savings is the right move for you, call Participant Services at 800-724-7526 to request the application form (en Español 877-905-2553).
Your Roth 401(k) and pre-tax contributions are subject to the above limits. When combined with after-tax contributions, they may not exceed 37% of your compensation.
You are permitted to roll over money from other qualified 401(k) plans into the Humana Retirement Savings Plan at any time. Consolidating your retirement accounts may make it easier for you to manage your retirement investments. By making a direct rollover, you avoid current income taxes and your money may continue to accumulate on a tax deferred basis. For more information on rollovers, call Participant Services at 1-800-724-7526 (en Español call 1-877-905-2553) or visit workplace.schwab.com.
Changing Your Contributions
You may change your Pre-tax, Roth 401(k), After-tax and Catch-up contributions at anytime*. Your change will be effective as soon as administratively possible. To make a change, visit workplace.schwab.com or call Participant Services at 1-800-724-7526 (en Español call 1-877-905-2553).
*Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons.