Retirement
The sooner you start saving for retirement, the more time your savings have to grow. The Neighborly 401(k) savings plan allows you to save for retirement on a pre-tax or after-tax (Roth) basis. If you don’t enroll within your first 60 days of employment, you’ll be automatically enrolled in the plan with pre-tax contributions.
How the 401(k) Plan Works
- Your contributions: You’ll be automatically enrolled at 6% of your eligible compensation, and your contributions will start with the first payroll following 60 days of employment. Your funds will be invested in an age-appropriate investment plan. You can opt out, or designate a different contribution amount, up to 100% of your eligible pre-tax compensation, subject to annual IRS limits, at any time. Contributions can be made on a pre-tax or after-tax (Roth) basis. Changes to your contributions will be effective as soon as administratively possible.
- Neighborly matching contributions: Neighborly supports your retirement savings by matching 50% of each dollar you contribute, up to a maximum of 3% of your earnings.
- Vesting: You’re always 100% vested in your contributions, including any rollovers you make to your account. The Neighborly contributions and earnings vest based on years of service, 20% each year. After five years of service, these funds are 100% vested and fully yours.
If You’ll Be 50 or Older This Year
You can make an additional catch-up contribution of $7,500 ($8,000 in 2026), for a total annual contribution limit of $23,500 ($24,500 in 2026) subject to IRS limits. Catch-up contributions are available for both pre-tax and Roth savings options.
If your eligible FICA wages for 2025 exceeded $145,000, you must make any catch-up contributions as post-tax Roth contributions.
How to Enroll in Your 401(k)
To enroll in the Neighborly 401(k) plan, visit www.empowermyretirement.com or call the Empower Retirement benefit service center at 800-338-4015. If you have a 401(k) from a previous employer and are interested in rolling it over to our plan, the Empower Retirement service center can guide you through the process.
Looking for guidance on investments, finances, or retirement planning? As a participant in the Neighborly 401(k) plan, you have access to personalized support from our 401(k) fiduciary—completely free of charge. Disciplined Investors are available to help you make informed financial decisions. To schedule a one-on-one session, contact: Disciplined Investors
Other Considerations
You may contribute up to 100% of your eligible compensation before taxes each pay period, subject to annual IRS limits. Contributions can be made on a pre-tax or after-tax (Roth) basis. You may make changes to your contributions at any time, which will be effective as soon as administratively possible.
The plan is designed primarily to help you save for retirement. Early withdrawals are restricted by the Internal Revenue Service and may be subject to tax and penalties. You may take money out of your plan account under certain circumstances. For more information, please call Empower Retirement at 800-338-4015.