What is a 401(k)?How much should I contribute?Is there a maximum amount I can put in?
Plan Options: 401(k) Retirement Plan
A 401(k) is a savings and investing plan that gives you a tax break on money you set aside for retirement. Contributing to a 401(k) plan may be one of the most important things you can do to prepare for your long-term financial needs. Being on track to meet your financial goals will provide you and your loved ones peace of mind. A 401(k) plan allows you to contribute a portion of your compensation per pay period in order to prepare for retirement. If you are already contributing to the 401(k) plan, now may be a good time to increase your contributions. SimpleNexus is here to help our employees with wealth planning by providing both Traditional and Roth 401(k) options. Employees are eligible on the first day of the month following 90 days after their date of hire.
401(k) Retirement Plan
The SimpleNexus 401(k) Plan has been adopted to provide you with the opportunity to save for retirement on a tax-advantaged basis.
How do I participate in the Plan?
Provided that you are an eligible employee at SimpleNexus, you may begin participating under nCino’s 401(k) plan on the first of the month after 90 days of being employed by SimpleNexus.
What are deferrals and how do I contribute to the Plan?
As a Participant, you may elect to reduce your compensation by a specific percentage or dollar amount and have that amount contributed to the Plan. This amount is referred to as a salary deferral. There are two types of Salary Deferrals: Pre-Tax 401(k) deferrals and Roth 401(k) deferrals. Regardless of the type of deferral you make, the amount you defer is counted as compensation for the purposes of Social Security taxes.
Traditional Pre-Tax 401(k)
If elected, your taxable income is reduced by the deferrals contributions so you pay less in federal income taxes. Later, when the plan distributes the deferrals and earnings, you will pay taxes on those deferrals and earnings. Therefore, paying taxes on contributions made are postponed and taxed once they are distributed.
Roth 401(k) Deferrals
If elected, the deferrals are subjected to federal income taxes in the year of deferral. However, the deferrals and, in most cases, earnings on deferrals are not subject to federal income taxes when distributed to you. In order for earnings to be tax free, you must meet certain conditions.
Matching Contributions
nCino matches 60% of up to 6% employee contribution. Your employee contribution is vested immediately. nCino’s match takes two years to vest and vests 50% per year.
How do I setup my 401(k)?
About a few weeks prior to your eligibility to enroll in the nCino 401k, you will receive an email invitation from Fidelity notifying you of your pending eligibility. Once you are eligible, you will be able to login into Fidelity’s website to begin your contributions.
How do I change my contribution rate?
You can change your contribution rate at any time. The changes you make to your deferrals are made the first of the month following the month the change is made in Fidelity’s system. This can be done by visiting Fidelity’s website and logging into your account. From there select “Menu” and “Retirement Savings” where you will be able to view all of your plan information including managing your contribution amounts.
