401K Plan
The San Diego Electrical Annuity Plan is a tax-deferred defined contribution individual account retirement plan, qualified under Section 401(a) and 401(k) of the Internal Revenue Code. The benefits payable to Participants are based on the account balance in their individual accounts. While its primary purpose is to provide Participants with a source of income at retirement, it also provides benefits in the event of disability or death and under certain circumstances permits loans and hardship withdrawals. The Plan is open to members of IBEW Local 569, IBEW Local 47, and IBEW Local 1245.
Each employee can elect to reduce his or her wages by a certain amount (defer), and have that amount contributed to the plan. The deferred amount does not appear as taxable income on the employee’s W-2 statement. Thus, the contributions are not subject to current federal or state income tax until the employee receives the money from the Plan.
The San Diego Electrical Industry Administrative Corporation (aka the Trust Office) handles the administration of the Plan. Please contact us at 858-569-6322 with questions that are not addressed below in the Frequently Asked Questions (FAQ) section.
FAQ:
1. What are the details of the Plan?
2. How do I enroll?
Contact the Trust Office and request an Enrollment & Beneficiary Designation Form or click on the link below to download the forms. Send all completed forms to 4545 Viewridge Avenue, Suite 110, San Diego, CA 92123. Please Note – Married Participants are required to have Beneficiary Designation Forms notarized if anyone other than their Spouse is listed as the Beneficiary.
– Enrollment & Beneficiary Designation Form
3. How do I access my account?
Once your account is established, your individual funds will be held with John Hancock Retirement Plan Services. You can access your account by going to www.myplan.johnhancock.com or via their mobile app. Download the mylifenow app for iOS or Android.
4. How do I make changes (address, deferral rate, etc)?
You can make all changes by contacting the Trust Office. Or for change of deferral rate or to cancel/rescind participation in the Annuity Plan you can also click on the link below to download the Change/Recission Form.
5. Can I take a loan from my 401k account?
Loans can be taken from the plan for any reason. There is a $75 initial set-up fee for processing a loan and a $2 monthly fee. The minimum loan amount is $1,000 while the maximum loan amount is the lesser 50% of your account balance or $50,000. A participant may only have one loan outstanding at a time. The interest rate is prime (determined at the time the loan is taken) plus 1%. Loan payments shall be made monthly over a period of no more than 5 years unless the loan is being used for the purchase of a home. Participants apply for loans through their online account at www.myplan.johnhancock.com.
6. How do I take a distribution?
A Distribution from your 401k account is only permitted when:
- You have retired from work in the electrical industry and have attained the early retirement age of 55;
- You attain age 59 ½. You do not need to terminate covered employment to receive a distribution of benefits at age 59 ½.
- You attain normal retirement age of 65. You do not need to terminate covered employment to receive a distribution of benefits at age 65.
- You terminate employment for any reason (including disability, layoff, etc) with any employer maintaining this Plan prior to age 55. Your contributions and investment earnings are available for distribution following termination of employment and receipt of an application for benefits, but may be subject to taxes and early withdrawal penalties unless rolled over to an IRA, Roth IRA, or qualified plan
- You are disabled as determined by the Social Security Administration or the California Department of Industrial Relations
Distributions will be charged a $50 fee. This fee will be waived for distributions related to Retirement, RMD, Disability, or Death.
Contact the Trust Office and request a Distribution Application or click on the link below to download the Distribution Application. Send the completed Distribution Application to 4545 Viewridge Avenue, Suite 110, San Diego, CA 92123.