401(k) Retirement Savings Plan
The 401(k) Savings Plan is a defined contribution plan, which means both you and the company contribute to your account to help you save for retirement. These types of plans offer a number of advantages, including control, portability, tax savings and greater potential for financial security.
Who is eligible?
You are eligible to participate if you meet the following criteria:
- You are a full-time or part-time associate
- You have reached age 18
Learn More
Your Contributions
Contributions begin the first of the month following or coinciding with 60 days of continuous employment. You may contribute up to 80% of your salary, less payroll taxes and other benefit premiums, to the 401(k) plan if it does not exceed the IRS limit. If you are age 50 or older, you can make an additional “catch-up contribution” up to the IRS limit. This “catch-up contribution” begins automatically if you exceed the annual IRS limit on deferrals.
Contributions may be pre-tax deferrals or Roth after-tax deferrals. You may wish to consult your tax advisor to determine which deferral type is best for you.
Matching Contributions
The company provides a matching contribution if you participate in the 401(k) plan (pre-tax and Roth post-tax). You will receive a matching contribution on your deferrals up to 6%. Your matching contribution will be:
- Dollar-for-dollar (100%) on the first 1% you save
- 50¢ on the dollar (50%) on the next 5% you save
- A total matching contribution of 3.5% of your compensation if you contribute 6%
Maximizing Matching Contributions
If you are trying to maximize your deferrals to the annual IRS limits, ensure you defer at least 6% of your eligible compensation each year to maximize the company match.
The company matches on a pay period basis with a true-up matching contribution for any missed match after the end of each plan year.
Employer Contribution
For associates hired (or rehired) after June 30, 2017, and those who did not enter the Pension Plan by January 1, 2018, the company will provide an employer contribution of 2% of pay on your behalf. This contribution will be made each pay period into your 401(k) Savings Plan account, based on your 401(k) eligible pay.
Vesting
You are always 100% vested in your own contributions and the earnings on those contributions. The company’s matching contributions to your 401(k) vest after you have completed two years of service. The employer contribution will vest after you have completed three years of service. A year of service is any calendar year in which an associate has worked 1,000 hours. Information about distribution rights including rollovers will be made available at time of separation. If you receive a distribution before age 59½, you may be subject to a 10% penalty tax for early distributions.
Compensation
For the 401(k) Plan, the compensation includes base salary, bonuses, incentives and commissions, less any deferrals under the HWC Non-Qualified Deferred Compensation Plan. Each year, the IRS limits the total amount of annual compensation that can be included.
Automatic Enrollment
The plan utilizes an automatic enrollment feature. Automatic enrollment means 3% of your compensation will be deferred upon completing your eligibility period.
You may change your deferral or opt out of the plan by logging on to EmpowerMyRetirement.com and either changing your deferral or waiving participation. You may opt out and receive a return of your deferrals if you do so within 90 days of the date of your first deferral.
The Permissible Withdrawal form can be found by clicking on the My Accounts tab of the website and then clicking on Plan Forms.
The deferral rate will increase automatically each year on the first payroll period until you are contributing 6% of your pay as illustrated below:
- 3% deferral rate for the first calendar year
- 4% deferral rate for the second calendar year
- 5% deferral rate for the third calendar year
- 6% deferral rate for each succeeding year
Resources & Tools
There are a host of educational tools and resources available to help you learn about your retirement savings plan and plan for your retirement. Visit EmpowerMyRetirement.com to:
- Review your account balance
- Find fund information
- Make transfers
- Change your fund selections
- Update your deferral elections
You also have access to investment tools you can use to:
- Look up definitions of investment terms
- Learn about investment basics
- Develop a plan for retirement
In addition, you have access to a number of calculators to help figure out how much money you will need in retirement and how much you will need to save to get there.
Retirement Videos by Empower
Empower is pleased to offer an interactive educational series of virtual group sessions where you’ll connect with an Empower educator! These sessions are open to all Empower participants and focus on a variety of topics. The virtual group sessions will not focus on details specific to your retirement plan.
Retirement FAQs
Where can I find more information?
The Summary Plan Description is available at EmpowerMyRetirement.com.
How do I opt out of the 401(k) plan auto enrollment?
If you don’t want to participate in the 401(k) plan, you may choose to opt out at any time. To opt out, log in to EmpowerMyRetirement.com and change your deferral election to zero.
How do I change my future deferral election?
You can change the amount of your deferral election for future deferrals at any time at EmpowerMyRetirement.com. You may increase or decrease your deferral as often as you wish.
How do I request a withdrawal if I failed to opt out of the 401(k) plan prior to a contribution being made?
Once you have opted out of the 401(k) plan (see question two) you can withdraw amounts automatically withheld from your paycheck under the automatic enrollment feature, adjusted for earnings, gains or losses, provided that you request the withdrawal no later than 90 days after your first automatic deferral is made. If you request a withdrawal, you will forfeit any matching contributions, but will not be subject to the 10% penalty tax for early withdrawal and will be deemed to have elected not to participate in the plan. Visit the website at EmpowerMyRetirement.com to complete the 90 Day Permissible Withdrawal form. Once the form is completed, return the form to Empower.
Why should I contribute to the 401(k) Savings Plan?
Making contributions to the 401(k) Savings Plan will help you build a financially secure retirement. The 401(k) Savings Plan provides a way for you to save by allowing you to set aside money from your paycheck for retirement. Keep in mind, 401(k) Savings Plan contributions are automatically deducted from your paycheck, making it easy and consistent to save. The matching contribution is an extra incentive to save.
If you do not contribute to the 401(k) Savings Plan, you leave matching contribution dollars “on the table.”
Do I have to contribute to the 401(k) Savings Plan to receive the employer contribution?
No. If you are an eligible associate, you do not have to contribute to the 401(k) Savings Plan to receive the
employer contribution.
Does the company match or employer contribution count toward the annual IRS deferral limits?
No, neither the company match nor the employer contribution counts toward the IRS limit for the maximum amount a participant can defer into their 401(k) account annually.
Managing Your Account
If you don’t want to participate in the 401(k) plan, you may choose to opt out at any time. To opt out, log on and change your deferral election to zero.
Record Keeper
Empower Retirement is the company’s 401(k) plan record keeper. Access your account at EmpowerMyRetirement.com. We encourage you to review your deferral elections. Changes can be made at any time.
Investment Fund Options
You can find more information about your investment fund options and make changes to your investment fund selections by visiting the record keeper’s website. To manage your account, log on to the record keeper’s website.
Safe Harbor Plan Design
The company’s 401(k) is a Safe Harbor Plan designed to eliminate restrictions on contributions to the 401(k) plan, except those imposed by the IRS. To qualify as a Safe Harbor Plan, the company uses automatic enrollment. See the Safe Harbor Notice for more information. A copy of the Safe Harbor Notice is available on My Workday, EmpowerMyRetirement.com or requested through HRLink.
401(k) Advantages
Most financial experts regard a 401(k) savings plan as a good option to reach your retirement goals. That is because in addition to your contributions, the company also offers matching funds and an employer contribution. Given the incredible force of compounding, it makes sense to take full advantage of all that the company’s 401(k) plan offers:
- Savings of up to 80% of your eligible pay less payroll taxes and benefit premiums up to the annual IRS limits.
- Convenient payroll deductions, company-matching contributions, and employer contributions.
- You are always 100% vested in your own contributions, but once you are vested in the company-matching contributions and employer contributions, you can take your entire account with you, 30 days after you leave the company. If you receive a distribution before age 59½, you may be subject to a 10% penalty tax for early distributions.
- You choose how you invest your account balance from a number of investment options in the plan, giving you more control over your retirement savings.
- Easy-to-track account balances at EmpowerMyRetirement.com.
Example of Compounding Growth
Let’s consider Maria, an eligible associate who:
- Has compensation of $55,000 in the calendar year, with an average annual pay increase of 3% over the course of her career
- Contributes 6% of her pay pre-tax
- Earns a 6% investment return
Maria's Annual Pay | Maria's 6% Pre-Tax Contribution | HWC 3.5% Matching Contribution | Estimated 6% Investment Return | Maria's Ending Balance | |
---|---|---|---|---|---|
Year 1 | $55,000 | $3,300 | $1,925 | $154 | $5,379 |
Year 2 | $56,650 | $3,399 | $1,983 | $482 | $11,243 |
Year 3 | $58,350 | $3,501 | $2,042 | $838 | $17,624 |
Year 4 | $60,100 | $3,606 | $2,103 | $1,226 | $24,559 |
Year 5 | $61,903 | $3,714 | $2,167 | $1,647 | $32,087 |
As Maria continues to contribute to the 401(k), her savings and earnings compound and in a five-year period, she has saved $32,087.
Savers Credit
Under the current tax code, you may be able to take a tax credit of up to $1,000 ($2,000 if filing jointly) for making contributions to the 401(k) if you are age 18 or older, not a full-time student, not claimed as a dependent on another’s tax-return and your adjusted gross income indexed each year is less than:
- $64,000 married filing jointly
- $48,000 filing as head of household
- $32,000 single or married filing separately
Non-qualified Deferred Compensation Plan
Hancock Whitney offers a Non-qualified Deferred Compensation Plan to eligible associates that provides opportunities to save for future financial goals while reducing taxable income and accruing tax-deferred earnings on your investments. Participation is limited to a select group of associates and directors of Hancock Whitney Corporation and its participating subsidiaries. The Compensation Committee determines the eligibility criteria to participate in the plan. Enrollment information is provided directly to eligible associates each fall.
Pension Plan (frozen)
The Hancock Whitney Corporation Pension Plan was frozen to new entrance on January 1, 2018. Associates hired (or rehired) after June 30, 2017, and those who did not enter the Pension Plan by January 1, 2018, are not eligible for this benefit. Associates hired before July 1, 2017, should refer to the Changes to the HWC Retirement Program communications distributed during 2017 for more information regarding their pension plan benefit. Retirement Focus is the Pension Plan recordkeeper.