More and more Sysco employees are investing in their futures through 401(k) plans. Sysco employees who participate in 401(k) plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments.
As a Sysco employee, if you are among those who direct your investments, you will need to consider the investment objectives, the risk and return characteristics, and the performance over time of each investment option offered by your plan. Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income. This article will outline some of the major factors that may impact the severity of fees relating to your Sysco 401(k) plan:
| 'Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income.' |
|
Funds that are “actively managed” (i.e., funds with an investment adviser who continually researches, monitors, and actively trades the holdings of the fund to seek a higher return than the market) generally have higher fees. The higher fees are associated with the more active management provided and sales charges from the higher level of trading activity. As a Sysco employee, you may want to consider how while actively managed funds seek to provide higher returns than the market, neither active management nor higher fees necessarily guarantee higher returns.
Funds that are “passively managed” generally have lower management fees. Passively managed funds seek to obtain the investment results of an established market index, such as the Standard and Poor’s 500, by duplicating the holdings included in the index. Thus, passively managed funds require little research or trading activity. For Sysco employees, it is worthy to account for the information when deciding who will manage your funds, and if their rates are adequate for the services provided.
If the services and investment options under your plan as a Sysco employee are offered through a bundled program, then some or all of the costs of plan services may not be separately charged to the plan or to your employer. For example, these costs possibly may be subsidized by the asset-based fees charged on investments. Compare the services received in light of the total fees paid.
Featured Video
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Plans with more total assets may be able to lower fees by using special funds or classes of stock in funds, which generally are sold to larger group investors. “Retail” or “brand name” funds, which are also marketed to individual and small group investors, tend to be listed in the newspaper daily and typically charge higher fees. As a Sysco employee, you should inform your employer of your preference.
Optional features, such as participant loan programs and insurance benefits offered under variable annuity contracts, involve additional costs. Consider whether they have value to you as a Sysco employee. If not, let your employer know.
Retirement plans, such as 401(k) plans, are group plans. For those working in Sysco, your employer may not be able to accommodate each employee’s preferences for investment options or additional services.
What type of retirement plan does Sysco offer to its employees?
Sysco offers a 401(k) Savings Plan to help employees save for retirement.
Does Sysco provide a matching contribution for its 401(k) plan?
Yes, Sysco provides a matching contribution to the 401(k) plan, which helps employees increase their retirement savings.
At what age can Sysco employees start participating in the 401(k) Savings Plan?
Sysco employees can typically start participating in the 401(k) Savings Plan as soon as they meet the eligibility requirements, usually at age 21.
How can Sysco employees enroll in the 401(k) Savings Plan?
Sysco employees can enroll in the 401(k) Savings Plan through the company’s benefits portal or by contacting the HR department for assistance.
What investment options are available in Sysco's 401(k) Savings Plan?
Sysco's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
How much can Sysco employees contribute to their 401(k) plan each year?
Sysco employees can contribute up to the IRS limit for 401(k) contributions, which is adjusted annually.
Does Sysco allow employees to take loans from their 401(k) Savings Plan?
Yes, Sysco allows employees to take loans from their 401(k) Savings Plan under certain conditions.
What happens to a Sysco employee's 401(k) account if they leave the company?
If a Sysco employee leaves the company, they can choose to roll over their 401(k) account to another retirement plan, cash out, or leave it with Sysco.
Can Sysco employees change their contribution percentage to the 401(k) plan?
Yes, Sysco employees can change their contribution percentage to the 401(k) plan at any time, subject to certain guidelines.
Is there a vesting schedule for Sysco's matching contributions to the 401(k) plan?
Yes, Sysco has a vesting schedule for its matching contributions, meaning employees must work for a certain period before they fully own those contributions.