If you have funds in the International Paper 401K plan, there are a few things your should know!
Over the past few decades, 401k plans have quickly become a primary retirement savings vehicle for many Americans. But still, many retirement savers don’t understand exactly how their 401K plan works and how it compares against other retirement plans.
When it comes to the International Paper 401k plan, there are excellent resources available from human resources and the benefits team. But don’t stop there! Whether you are in the hourly plan or the salaried plan, a current participant or a recently terminated employee, you need to get informed.
International Paper 401K Plan Basics
Although the International Paper plan is often simply referred to as a 401K, it actually encompasses much more than just the salary deferral 401K savings. Both the hourly plan and the salaried plan offer a profit-sharing component, stock bonus component, 401k feature, and ESOP component. (There have been some changes to the formerly offered pension component. See the IP FAQ document on the pension freeze HERE.)
How does the International Paper 401k plan rank?
According to Brightscope, the International Paper 401k plan is average compared to its peers. The Hourly plan receives a score of 65 which is 24 points less than the top rated plan of 89. The Salaried plan receives a score of 77 which is 13 points less than other similar plans.
Brightscope gives the plan high marks for low cost structure and an above average rating for “company generosity.” The company generosity category is based on the “plan’s vesting schedule, eligibility periods, and all the contributions to the plan for the sole benefit of the participants.” The plan has an “average” participation rate meaning many International Paper 401k plan participants are taking advantage of this benefit.
Hourly Employee 401K vs. Salaried 401K
A side by side comparison of the features of the hourly plan vs. the salaried plan has a few notable standouts. See the chart below for more.
The International Paper 401k has a decent list of investments to choose from. According to Brightscope, there are 15 investment options in the hourly plan and 16 investment options in the salaried plan. Many 401K plans have more options, but that is not necessarily better. Too many choices can often lead to lack of diversification and feeling overwhelmed with all the options to consider.
Plan Service Providers
The International Paper 401k plan utilizes Empower Retirement as the record keeper for the plan. This company is an experienced service provider in their space.
Here are a few quick facts about Empower Retirement (as reported by Empower Retirement website):
- Second-largest retirement services company in the country
- 8 million+ participants in their retirement plans
- $450.4 billion assets under administration
- 36,000+ retirement plans under administration
Options for help?
If you have questions about your International Paper 401k plan, log in to My-IP at work (or www.my-ip.com at home) and select Manage My Retirement and Savings Plans. You also may log in directly to www.myipretirement.com or call 1-888-ESC-2YOU (1-888-372-2968).
If you’d like some help outside of your employer or 401K sponsor, please feel free to contact me via this link. I offer prospective clients a free consultation. This is where we discuss your needs and options and then identify the level of service that is right for you.
Information contained in the article regarding the International Paper 401k plan, is based solely on publicly available information as reported on required tax and disclosure forms as of 2017. In addition, information was gathered from other media outlets. Do not base your investment or financial planning decisions on this article alone. Contact your benefits team, tax advisor, and financial professional to discuss your unique situation.