Saving Money for the Future

Note: All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice. Information contained in this article is relevant to people employed with Values Into Action. If you are employed elsewhere, speak with your employer about the availability of 401k/Profit Sharing Plans.

Two important lessons in personal finance are to save money early and save money often. It may be difficult to decide where to put your hard-earned dollars once you start saving, though. A potential solution to this issue is to contribute to the Values Into Action 401k/Profit Sharing Plan.

Like many employers, Values Into Action provides access to a 401k Plan for employees who meet specific requirements. To be eligible to provide pre-tax contributions to the 401k account, an employee must meet the following:

  • Be 21 years of age
  • Have at least 12 months service time, and
  • Work more than of 1,000 hours during the plan year

After meeting these requirements, you can contribute a regular amount with each paycheck. That amount can be either a percentage of your gross earnings or a set dollar amount each pay. Capital Group/American Funds has many investments to meet your timeline and goals. Funds saved in the 401k belong to the employee and can be either distributed or rolled over once an employee leaves the organization or retires.

Another benefit offered by Values Into Action is the Profit Sharing Plan. Each year, our Board of Directors take a part of the company’s net profits and pass it to eligible employees. The Profit Sharing Plan has the same eligibility rules which must be met a set number of years to vest in the plan. The vesting requirements are three years for Values Into Action PA and one year for Values Into Action NJ. The Profit Sharing Plan has the same investing options as the 401k. An employee forfeits their profit sharing contributions if they leave the organization before meeting the vesting requirements. There is no forfeiture in the 401k plan.

Please reach out to a member of either the Culture & Talent or Fiscal Team if you would like to know more about this plan. There is also an enrollment website to review for each company.