Page 7 - Allscripts Retirement Savings Plan

Three Steps to Enrollment
STEP 1
Step 2 Step 3
DECIDE HOW MUCH TO SAVE.
Decide which investments are for you. Act now! Enroll.
SAVINGS ADVANTAGES
Since Social Security may not provide enough income during your retirement years and inflation could reduce your savings, it is important to develop a sound retirement plan. Saving through an employer-sponsored retirement plan is an important step in retirement savings.
FIRST—CONSIDER THE TAXATION.
Pre-tax Contributions: The amount you put into your regular 401(k) retirement account is deducted from your paycheck before it is taxed. The net impact on your take-home pay may be less than the amount you are contributing to the Retirement Plan. In addition to having your money go into the Retirement Plan on a pre-tax basis, your money may potentially grow tax-deferred. At retirement, the withdrawals you make from your Retirement Plan account may be considered income and may be subject to regular income taxes. You may be in a lower tax bracket during retirement and your tax burden may be less than it is today.
Roth 401(k) Contributions: The Retirement Plan also includes a Roth 401(k) option. If you decide to make Roth 401(k) contributions, they will be deducted from your paycheck after taxes. Your contributions and any potential earnings may grow tax-free, and you will not pay taxes on the money when it is withdrawn, provided that any distribution from the Retirement Plan account occurs at least five years following the year you make your first Roth 401(k) contribution, and you have reached age 591⁄2 or have become disabled. If you die, your beneficiary may not owe taxes on the Retirement Plan account balance either.
Catch-up Contributions: If you will be age 50 or older before December 31, you may be able to contribute an additional amount to the Retirement Plan. The federal government sets the catch-up contribution limit every year. Catch-up contributions are available for both pre-tax catch-up contributions and Roth 401(k) catch-up contributions to the Retirement Plan.
If you do not want your deferrals to reach the full catch-up contribution limit, you will need to monitor your Retirement
Plan account and elect a 0% deferral when you reach the annual IRS limit. Deferral changes can be made by going to workplace.schwab.com, then Manage Account > Contributions, or by calling Participant Services at 1-800-724-7526, between 7 a.m. and 11 p.m. ET, Monday through Friday. You can also access your Retirement Plan account to make deferral changes on the Schwab Workplace Retirement App.
PLUS, THERE’S THE COMPANY MATCH.
You can contribute from 1% to 70% of your eligible compensation to the Retirement Plan, up to the federally imposed limit for the year, and if you are 50 years of age or older, you may make the additional catch-up contribution. So, save as much as you can, and Allscripts will make a matching contribution of 100% on the first 4% of your eligible compensation that you contribute. Don’t leave additional contributions to your Retirement Plan behind!
QUICK TIP
Go to workplace.schwab.com to access the Paycheck Calculator. Click on Learning Center > Calculators & Resources > Take Home Pay Calculator. With the calculator, you can run scenarios to see how different deferral percentages will impact your take- home pay. This may help you move from how much you can save to how much you need to save.
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