Financial Resources
401(k) Plan and Roth Plan
NFM Lending offers a 401(k) Plan and Roth Plan options to all employees through Principal Financial. You are eligible to participate in the 401(k) on the first of the month following 90 days of employment. The 401(k) program offers employees the opportunity to invest pre-tax dollars.
401(k)
The 401(k) is an employer-sponsored plan where contributions are made on a pre-tax basis, reducing taxable income in the current year.
ROTH
The ROTH is an employer-sponsored plan where contributions are made on a post-tax basis.
What You Need to Know About These Plans
- This is a voluntary benefit, you have the option to opt-out or stay enrolled.
- The 401(k) Plan is an auto enrollment plan; if the employee does not opt out, 6% of their pre-tax compensation will be automatically withdrawn from their pay and placed in their 401(k) account when they become eligible to participate in the plan.
- The Roth requires you to make elections.
- After one year of service, you are eligible for the company match, which is equal to 50% of your own contributions up to an annual maximum company contribution of $2,500. Employee contributions are always 100% vested.
- An employee can choose to defer any amount from 0% to 89% of compensation up to the IRS contribution limits.
Contribution Limits
- Participants ages 21 to 49 can contribute up to $24,500 per calendar year.
- Participants age 50 to 59 can contribute an additional $8,000 in catch-up contributions.
- Participants age 60 to 63 can contribute the greater of $11,250 (indexed annually for inflation) or 150% of the catch-up limit — whichever is greater — in additional catch-up contributions.
- Participants age 64 and over can contribute an additional $8,000 in catch-up contributions.
1:1 Financial Assistance
Available to all employees at no cost
NFM Lending realizes that financial stress is a major issue affecting many people. The NFM Lending 401(k) plan engages the services of Forty W Advisors Investment Management, LLC — a member of the Association of Financial Educators. As part of Forty W Advisors’ services, they provide regular financial education and wellness programs that are available to all employees. The objective of the educational programs is to promote overall financial literacy and to connect employees with tools and resources to help them manage their day-to-day finances and plan for the future.
Contact:
Chris Thomas, Director, Private Wealth Management & Retirement Consulting
Forty W Advisors, Investment Management, LLC
Phone: 301-245-3587
Email: cthomas@FortyWadvisors.com
Please Note: NFM Lending continues to reserve the right to review the plans regularly in order to continue meeting the U.S. tax law requirements. While it is expected that these plans will continue indefinitely, NFM Lending also continues to reserve the right to amend, modify, or terminate the plans at any time.