Navajo Nation 401 (k) Savings Plan Features of your plan

This plan features overview answers some of the most common questions about the Navajo Nation 401(k) Savings Plan. For more information about your plan, refer to the Summary Plan Description available from your employer.

When can I enroll?

Eligibility to join the 401(k) Plan is immediate upon your date of hire. You will be automatically enrolled in the plan approximately 30 to 45 days after receipt of this enrollment information packet. Unless you take action, you will be enrolled at a contribution rate of 3% of your salary in pre-tax contributions. Your contributions will be 100% invested in the Target Date Fund that coincides with your retirement date.

While your enrollment is automatic, you have 30 days from receipt of this packet to:

1. Change your contribution rate.
2. Direct your contributions to other investment options available through your plan, or
3. Decline participation in the plan.

You may enroll in the Plan on any payroll date. Temporary employees are not eligible to join the plan.

How much can I contribute to the plan?

You will be automatically enrolled at a contribution rate of 3% of your salary, unless you select otherwise. If you elect to change this amount, you may contribute 1% to 100% of your salary.

If you are age 50 or over by the end of the calendar year, you may qualify to make additional “catch-up” contributions of up to $6,500 in 2021.

Your plan also offers an easy way to gradually save more with automatic contribution increases. You select the contribution increase amount and when you want the increases to stop. Sign up for automatic contribution increase any time online.

Your contributions are limited to the IRS limit of $19,500 in 2021, subject to certain limitations.

Does Navajo Nation make any contributions?

Your employer will match 50% of the first 6% of compensation in pre-tax salary deferrals you defer into the Plan.

Can I roll over money into my plan?

You may roll over money into your plan. Rollover contributions are allowed anytime.

You may roll over money into your account from the following sources:

1. 403(b) plans
2. 457 plans
3. Other qualified plans

Is my account automatically rebalanced?

Your plan provides you with options to help you maintain your account’s targeted asset allocation. Rebalancing your account on a regular basis is important to keep your investments in line with your chosen risk level and targeted asset allocation plan.

If you choose to invest in Target Date Funds, automatic rebalancing is taken care of for you since it is a built-in feature of the fund/portfolio.

If you select investments only from the individual fund options in your plan, you have the option to add automatic rebalancing to your account. After you enroll in the plan, you can add automatic rebalancing by signing on to your account online or by calling 1-800-547-7754, need contract number 331944.

Can I get help making my investment decisions?

Your plan offers the Wells Fargo Retirement Investment Advice program as a feature to help with your investment decisions. This program has been chosen by your employer, and is available to you at no additional cost. The Retirement Investment Advice program allows you to receive a personalized investment recommendation based on personal information that you and your employer provide. Investment recommendations are delivered through Morningstar Investment Management LLC. You must decide whether to implement the investment recommendation. The Retirement Investment Advice program does not invest or manage your plan account.

In addition, the program can help you determine how much you need to save for retirement. To access the Retirement Investment Advice program online, sign on to your account at wellsfargo.com. After selecting your plan name, go to Actions and Investments tab in the top navigation bar, select Advisory Services, then Retirement Investment Advice. Or you can contact Wells Fargo/Principal retirement service representative at 1-800-547-7754 for your personalized investment strategy. Representatives are available Monday through Friday, 5:00 a.m. to 9:00 p.m. Mountain Time. To prepare for the call, please read the disclosures about the program available online. If you do not have access to a computer, you can also obtain the disclosures from a retirement service representative.

When do I become vested in my account?

Vesting refers to your “ownership” of a benefit from your plan. You are always 100% vested in the money you contribute to the plan and the earnings on that money. You will be 100% vested in your employer’s contributions after your third complete year of service.

Are loans permitted?

You may borrow up to $50,000, or 50% (whichever is less) from your pre-tax vested account balance. The minimum loan amount is $500. You may have one loan outstanding at a time. You may be charged a loan set-up fee of $75.

Are loans permitted?

You may borrow up to $50,000, or 50% (whichever is less) from your pre-tax vested account balance. The minimum loan amount is $500. You may have one loan outstanding at a time. You may be charged a loan set-up fee of $75.

When can I receive money from my account?

1. At retirement
2. In-service distributions, after age 59 ½
3. At termination of employment, regardless of age
4. Death or disability

You may take a hardship withdrawal from your eligible elective deferrals in certain cases of financial need as established by IRS regulations. If you receive a hardship withdrawal, your deferrals into the plan will be suspended for six months.