Saving For Retirement: Investment and Savings Plan (ISP) / 401(k)
Whether you’re just starting your career or nearing retirement, saving now is a critical step for creating a more secure financial future for you and your family. The Hartford’s Investment and Savings Plan (ISP), which is our 401(k) plan, can help.
Your Contributions
You can begin contributing at any time, and elect to save up to 75% of your eligible compensation to your ISP account with one or a combination of the contribution types outlined below. You can choose to increase or decrease the contribution amount for future pay periods at any time.
| Traditional Pre-Tax | Roth 401(k) | After Tax | Catch-Up | |||
| Contributions | These contributions and earnings are not taxed, until they are withdrawn from the plan. Making before-tax contributions may be beneficial if you anticipate being in a lower tax bracket at retirement. |
These contributions are made after taxes are withheld from your gross pay and do not reduce your taxable income. | These contributions are made after taxes are withheld from your gross pay and do not reduce your taxable income. | If you are age 50 or older, you can make additional contributions beyond the standard annual IRS limit on a pre-tax and/or Roth 401(k) basis. If you are classified a “high earner”, you are only eligible to contribute on a Roth 401(k) basis. If you are aged 60-63, you have a higher catch-up limit. Find out more about Catch-up contribution rules. |
||
| Limits | Subject to IRS and plan limits. | |||||
| Distributions | Contributions and earnings are taxed when they are withdrawn.* | Contributions and earnings may be withdrawn tax-free, if certain criteria are met.* | At the time of distribution, you will not pay taxes on the contributions; however, you will pay taxes on their earnings.* | The tax treatment of your contributions and earnings depends on the type of contribution you made – whether pre-tax or Roth 401(k). | ||
| *Consult your tax advisor before making any distributions from the plan. | ||||||
How Much The Hartford Contributes
Immediately upon hire, the company helps boost your retirement in two ways:
- Non-Elective Company Contributions equaling 2% of your eligible earnings are made to your account every pay period, even if you do not contribute.
- Company Matching Contributions are made $1 for $1 on the first 6% of eligible earnings that you contribute on a per pay period basis.
- Company contributions are 100% vested after two years of service with the company.
If you contribute 6% of your eligible earnings, the company will add 8% (2% Non-Elective plus 6% Company Matching), resulting in a combined total of 14% of your eligible earnings being deposited into your account each pay period.
Plan Features
The plan has many features to help you execute your retirement saving strategy as well as maximize your company matching contributions.
Spillover Election is your choice to continue contributing to your account after you reach the annual elective contribution limit set by the IRS. Your Spillover contributions are after tax contributions and eligible for company matching contributions.
Separate Bonus Contributions Election. You can specify a different, separate contribution percentage for your annual bonus, which is typically paid to eligible employees in March.
Annual Increase Program allows you to establish regular annual increases to your retirement plan contribution amount. You can elect to increase your contributions by 1% or more each year automatically, depending on plan limits. If you coordinate your increase date and amount with expected pay increases, you may be able to realize both an increase in take-home pay and a higher retirement savings plan contribution.
Rebalancing is a way to maintain the investment mix you want without having to remember to make individual exchanges. You can choose to have Fidelity alert you if your allocations slip from your desired targets or you can set your account to automatically reset on a regular basis.
Portability. You can roll over eligible savings from a previous employer into this plan. You can also take your plan vested account balance with you if you leave the company.
Matching Company True-Up Contributions Provide Flexibility
The Hartford performs an annual review at the end of each plan year to ensure you receive the full company matching contributions you’re eligible for. If you qualify, a year-end true-up contribution will be added to your ISP account within the first quarter of the following year. This process allows you to contribute to your ISP throughout the year in a way that best fits your financial plan or budget. For example, if you choose to make most of your contributions in the first six months of the year instead of spreading them evenly, the true-up ensures you still receive the maximum company match for your total annual contributions—even if you reach IRS limits early. The true-up compares the company match you actually received during the year to the amount you would have received if your contributions had been spread out, and makes up any difference if needed.
Access Your Account and Get More Information
Go to Fidelity NetBenefits to access your account and update your information. On this site, you'll find additional plan details, investment and vesting information and the plan's Summary Plan Description, as well as tools and calculators to help you determine how much to contribute to your ISP. If you have questions, call the HR Service Center at 1-877-HR-AT-WORK (1-877-472-8967). For personalized investment advice, contact Edelman Financial Engines.