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USW Benefit Funds: Roth vs Traditional 401(k)

Looking for a new way to save for retirement? See if the Roth 401(k) might be right for you!

Roth 401(k)

Contributions are made on an after-tax basis.

Contributions are subject to federal and state taxes in the contributing year.

You’ve already paid taxes when you contributed, so you won’t be taxed when you withdraw your money.*

Not only that, but any interest earnings will also come out tax-free.

Employer contributions are made with pretax dollars and, therefore, are taxed at withdrawal.

Traditional 401(k)

Contributions are made on a pretax basis.

Contributions are not subject to taxes in the contributing year.

You’ll pay taxes on the contributions and any earnings based on your tax bracket at the time of withdrawal.

Annual Limits

Contribution limits are the same for both traditional and Roth 401(k)s.

For employees under 50, contributions cannot exceed $23,000 in 2024.

For employees age 50 or older, the contribution limit is $30,500 in 2024.

USW Industry 401(k) Plan

Contributions may be made on a pre-tax basis, after-tax and Roth. After-tax and Roth are different and both are available.

In 2024, the combined contribution amount is limited to $23,000 for employees under 50 or $30,500 for employees who are 50 or older.

Take some time to understand your options so you can decide what is best for you.

Tax Bracket Strategy

If you expect to be in a similar or lower tax bracket as you are now when you retire, a traditional 401(k) may be the best option.

If you expect to be in a higher tax bracket when you retire, you might want to consider a Roth 401(k).

Enrollment

Enroll today!

To begin making or to change your 401(k) contributions, download the Savings Contribution Rate Election Form from empower.com/usw.

You can also ask your employer for a copy of the form. Complete the form and provide it to your employer.

Empower representatives can also assist you weekdays from 8 a.m. to 10 p.m. and Saturdays from 9 a.m. to 5:30 p.m. Eastern time.

Visit: empower.com/usw | Call: 833-569-2433

Legal & Disclosures

To avoid paying taxes on your Roth withdrawals, your account must be held for at least five tax years and you must be at least age 59½ or the distribution must be due to disability or death.

Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC.

EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC.

This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice.

Investing involves risk, including possible loss of principal.

“EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

401(k) Employer FAQs

Provide eligible employees with an enrollment packet. This includes the Summary Plan Description and the Savings Contribution Election form. The employee will give you the Savings Contribution form. Keep the original and give a copy to the Fund Office.

Please contact the Fund Office if you need more materials.

Steps-Enroll-Plan.pdf

To name or change your beneficiary designation(s), log in to your account, go to Account, click on Overview and click on Beneficiaries. A paper form is only needed if you are married and designating someone other than your spouse. Notarized spousal consent is required, and the form needs to be sent to Empower. Delivery instructions to return the form to Empower are included in section D of the form. Log in to your account to download the form or contact Empower at 833-569-2433 to request a copy.

Participants may log onto their account at empower.com/usw or contact Empower at 1-833-569-2433.

The plan allows changes to a contribution rate at any time. Provide the Savings Contribution Rate Election form to the employee to complete. Save completed form in your payroll records.

Yes. Contributions may be stopped at any time. You should send a completed Savings Contribution Rate Election form to your employer. Your employer will stop the deduction as soon as administratively possible. The form is located under the Documents section of the website.

Yes. Existing participants should contact Empower for a Rollover form. New participants wishing to enroll in the USW Industry 401(k) Plan by processing a rollover should be given the enrollment packet and then contact Empower for a Rollover form.

If you know the party you wish to contact, you may contact the person directly. You may contact the USW Industry 401(k) Fund Office by phone at 1-877-344-4015, via fax at 615-333-5794, or by mail at:

USW Industry 401(k)
1101 Kermit Drive, Ste 800
Nashville, TN 37217

Changes to an employee’s demographic information, except marital status, should be included in the contribution file to update. Changes in marital status along with supporting documentation such as marriage certificate or divorce decree should be emailed to 401k@uswbenefitfunds.com.