Sign North Carolina Profit Sharing Agreement Template Secure

Document type sign profit sharing agreement template north carolina secure

well i want to say good afternoon my name is tequila barnes hall i'm with college foundation north carolina and if you're joining today we're talking about north carolina's national college savings plan and the nc 529 employer guide just a few housekeeping rules before we begin today i just want to let you know that we will be having our formal q a at the very excuse me at the very end of our presentation today and that if you have questions feel free to ask them during that time or you may also include your questions in the chat so we're very happy to have you joining us this afternoon i want to just take a moment to introduce today's presenters again my name is tequila barnes hall and i'm the 336 nc 529 regional representative we'll also have skip watts joining us this afternoon he is the 828 east nc 529 regional representative and gab um gabrielle anastasia she is our nc 529 services supervisor let's talk about our topics this afternoon so we're going to talk about how the 529 works what are the benefits of adding the nc 529 to your existing benefit package and how do i set up a nc 529 group plan for my employees we definitely want you to have the opportunity to show your employees they matter so i just want to talk about the glass doors employment confidence survey that was actually given a while back and it basically states that 60 of people reported that when they were considering a job they were looking at the benefits that were being offered and so that's definitely a important factor as your employees or future employees think about your institution then there's another survey that i want to just talk to you about briefly so this is a survey that was done by the employee benefit research institute or the ebri and it was entitled employer approaches to financial well-being solution survey and what it basically says is that there are four most common financial wellness initiatives that are being offered by institutions and um for the purposes of our meeting today i'm going to just talk to you about three of the four and you'll see that when they looked at financial planning education that was 60 percent tuition reimbursement was 64 percent and then last but not least basic money management tools were at 49 percent so let's just take a moment just to talk about how the plan works so we're going to just talk about some of the the major points that will be important to you as you think about adding this to your existing benefit package so we talk about 529 what is it so 529 plans are named after the irs code 529 and they're designed to help individuals save for all different types of qualified educational expenses and so we're talking about things like tuition fees room and board books supplies and other equipment now when we're talking about other equipment that could be something for example like a computer now i also want to make sure that you know that every 529 plan enables participants to qualify for federal tax benefits and if there are north carolinian in the nc 529 plan they can qualify for state tax benefits as well the nc 529 plan is authorized by the north carolina general assembly for the state and that happened in 1996 and is established and maintained by the north carolina state education assistance authority and is administered by cfi or college foundation inc i start a 529 plan i always think that's a great question for employees to ask and of course most families will have to pay at least a portion of their children's college expenses or it could be other family members and that's a lot easier when individuals start to plan ahead and by taking advantage of the nc 529 college savings plan that will help them get started on their share of future expenditures so let's talk about the six primary ways to use the nc 529 funds and so you'll see on the screen there's a great infographic to help you see what those things are so the first one we see here are the college expenses um including things like tuition books fees room and board and like i mentioned to you before computers uh that's one um primary way and then we're looking at trade school expenses it could be for apprenticeship programs and i just want to make sure you understand as long as those are registered with the us department of labor or the state's apprenticeship agency for k-12 education my colleague is going to talk to you a little bit more about that later in the presentation special needs equipment and then it can also be used for student loan payments now as we talk about the nc 529 plan is open to residents of any state and this is something that is done directly with enrollment through cfi which means no fees or sales charges for being able to enroll and then we're going to talk about the major features of the program this afternoon we'll talk about it being accessible affordable tax-free earnings on contributions the flexibility of the plan as well as it being comprehensive so let's talk about accessible that means anyone 18 or older can establish an account for someone else and so when we think about you know who those individuals are it could be biological parents grandparents aunts or uncles grandparents love to establish these types of accounts it could be a neighbor or friend of the family or you might have employees that want to establish an account like this for themselves because they're thinking about going back to school we'll talk about a little bit about affordable how is this affordable so again i mentioned to you there are no enrollment fees and the minimum contribution is a look as low as 25 per contribution so again the minimum contribution is as little as 25 per contribution we have some low total annual asset based fees and expenses so you can see the range right here on my screen so we're looking at 0.25 percent 2.39 percent and there are no extra fees unless you request some type of special service and so we're talking about things like career delivery or receiving paper communications versus electronic and maybe something like ongoing um wire so outbound wires could be something that could be an extra fee now the beauty of this program or this plan is that your employees can contribute whenever and however they want that we're talking about whenever that can be on occasion or can be regular or regularly and when we talk about how they want to contribute that might be something like a lump sum contribution or perhaps it may be an automatic drive when we're talking about lump sum contribution some examples would be personal chats we're talking about eft could be money orders or it could be a transfer rollover from another section 529 account it could be your coverdale education savings account qualified savings bond so you'll see here in parentheses i'm talking about series ee or i issued after 1989. now that we've talked about um a few types of drafts and lump sum contributions and things of that nature i want to talk about some automated ways to make your contributions or for your employees to make contributions so we're talking about reoccurring account drafts so that could be once or twice a month whatever date that employees would select and the most popular way of course is payroll deduction so we have many employers throughout the state that are already taking advantage of payroll deduction for their employees so as an employer you do have to set up a nc 529 plan to transmit employee contributions and your employees must have a payroll deduction authorization agreement on on file with the nc 529 plan and of course they will do their enrollment agreement tax free so um as we talk about tax advantages account earnings are free from federal and nc income taxes when they're used to pay for qualified educational expenses and we talked about that a little bit at the very beginning so again when we're talking about qualified educational expenses we're talking about those things like tuition fees room and board book supplies other equipment and then um we may have some employers on the webinar today that have employees that may not be in north carolina they might be outside the state so um out-of-state residents pay no federal income taxes on account earnings used for qualified higher education expenses but we do encourage them to check for their tax advisor regarding state taxes so again we want them to check whether our tax advisor regarding state taxes we're going to talk about flexibility so savings may be used for the beneficiaries college at virtually any accredited college or university in the country and so another thing that i want to point out as we're talking about flexibility you can change your future contributions anytime however you you know you can reallocate current funds that's money that we have already received in the program twice each calendar year now there's some new things that i want to make sure that you're aware of for the nc 529 plan and like i said i'm a colleague we're going to kind of tag team this afternoon and he's going to talk about some of these things but new to 529 plans is that um you can use it for student loan payments and it can be used for apprenticeship programs now i'm going to turn it over to my colleague skip watts and he's going to take over this part of the presentation thanks tequila great job hello employers my name is skip watts i'm the 828 regional rep for the 529 plan in north carolina and i'm here to talk specifically about k-9 programs and how employees can benefit by saving through a north carolina 529 plan all right so beginning in january 20 2018 north carolina 529 participants may take out qualified withdrawals to pay for tuition or enrollment at attendance in private schools like a private middle school elementary school high school they can also pay for religious setting environments as well so if you want to send your kid to a a school that has a predominantly religious focus you can use 529 funds to pay for that opportunity you can use up to 10 000 per beneficiary per capita per calendar year with regards to these qualified k-12 tuition expenses now as tequila alluded to earlier trade school can be paid for with 529 funds trade school is a blossoming part of the higher ed spectrum and a lot more students are choosing to participate in trade school programs like for example a lineman school 529 funds can be used for that lineman school regardless of where that school is located in the country students can use 529 funds to pay for community or college community college or technical school programs four-year public universities for your private universities or even graduate schools opportunities as well now back in december 2019 the secure act was created and the secure act stands for setting every community up for retirement signed into law and it has some impact on student loan payments 529 plans can now be used to repay student loans but only up to a certain point up to ten thousand dollars lifetime maximum for the 529 beneficiary and up to ten thousand for each of their siblings can be used yearly to pay for student loans or excuse me can be used one time for a maximum lifetime contributions that can include siblings brothers sisters step brothers step sisters participants can change their beneficiary at any time and these are tax-free earnings on your 529 account that you can use to pay student loan interest and that will not be eligible for the student loan interest deduction if you have any other questions you definitely want to contact your tax advisor to determine to determine how using your 529 funds to repay student loans may impact you or your beneficiary now going back to the secure act it also impacts apprenticeship programs which is another blossoming part of the higher ed spectrum 529 funds can now be used for qualified expenses um the apprenticeship must be registered and certified with the department of labor hila mentioned this few minutes ago if you want to check to make sure your apprenticeship is registered you'll go to apprenticeship.gov to make sure that 529 funds can be used to pay for that apprenticeship program again contact your tax advisor to see how that will impact you or your beneficiary if you choose to use 529 funds to pay for an apprenticeship program now the 529 plan in north carolina is comprehensive we've got all kinds of investment options and we designed those to meet your objectives but at the same time helping you to feel comfortable with your risk allowance or allotment you may choose one or more of the following options okay so we've got a bunch of different investment options and the first one the federally insured deposit account is for folks that really like sleeping at night like myself okay it seeks to provide income plus protection on the principal and earnings through a federal deposit insurance okay basically the state employees credit union in north carolina guarantees you can't lose your principal if the market fluctuates within this account okay it's available to members of the state employees credit union and non-members so it's it's a really great opportunity for families that don't have a high acceptability for risk or market fluctuations now we also have three age-based vanguard investment options and i find that a lot of families choose to invest in these age-based tracks because they're a little bit easier to keep up with you don't have to develop your own portfolio and also they tend to change a little bit as the student ages to guarantee the principal is saved now there's an aggressive track a moderate track and a conservative track all of which have different investment strategies from the beginning so the next slide will detail that a little better okay so you can see up the top we have an invest aggressive track and a moderate track and a conservative track if a family chooses to invest in the vanguard aggressive growth portfolio initially from the time the student is newborn to four years old that's going to be a 100 stock portfolio that is contrasted to the moderate track which is at 87.5 stock and 12.5 bond portfolio and then the conservative track is even less stock and more bond again that's for somebody that doesn't want to put as much risk into their savings um and another thing to mention here while i'm on this slide is if you look down from newborn to five to six to seven to eight to nine to ten years old you can see that these tracks fluctuate they start to get more and more conservative as the student gets older and closer to going to college going age essentially that's to guarantee the principal and also the earnings that you've already locked in so as the student ages from 11 to 12 to 13 to 14 you can see the aggressive track has already changed substantially from when the student was zero to four years old if you'll remember back at that point when the student was zero to four years old the aggressive track was like 100 stock now it's switched over 50 stock 50 percent bond you can see the conservative track is 75 percent bond in comparison to that now as the student gets older in any one of these age-based options you can see between 17 and 18 it shifts over to about 25 stock or 75 bond in the aggressive track 75 percent bond in the moderate track and 25 bonds 75 percent short-term reserves for the conservative track essentially we're trying to guarantee what money is locked in is there when your student goes to college now there's all kinds of investment options as well that are individual so parents can pick and choose what they think is most appropriate for their investment style there's an aggressive growth portfolio and that you know seeks to provide capital appreciation there's a growth portfolio which provides growth of capital and low to moderate income and then there's a moderate growth portfolio that kind of speaks for itself as does the conservative growth portfolio for those that really again like sleeping at night the vanguard income portfolio just seeks to keep that current income now there's more investment options at the individual level there's the vanguard interest accumulation portfolio and that seeks to provide income consistent with the preservation of principal there's the total stock market index portfolio which seeks to track the performance of a benchmark index that measures the i vestment return of the overall stock market there's a total international stock index portfolio and that tracks the performance of the benchmark index that measures the investment return of stocks issued by companies located in emerging markets outside of the united states and then lastly there's a total bond market and that seeks to track the performance of a broad market weight bond index essentially there's an option for every investor in the north carolina 529 plan now who all can contribute to the 529 plan anybody can contribute it could be a parent it could be a grandparent it could be an uncle it could be the neighbor down the street i often tell family members that when looking for my son a christmas present that they might ought to consider putting some money towards his 529 i think the 25 dollars in this 529 account as a christmas or birthday present is way more valuable than a new video game or plastic toy that's just my personal opinion as a parent north carolina 529 plan will allow maximum total allowable expected contributions of up to five hundred thousand dollars i tell families if you're trying to put in an annual contribution of five hundred thousand dollars you could also consider buying a small private public or private liberal arts school somewhere for that same kind of money uh the account owner is called the participant for 529 plan the beneficiary is the person that is going to receive those benefits they can be any age there's no federal or north carolina income taxes you can time the withdrawals whenever the beneficiary goes to college and there's no income restriction or adjusted gross income restriction on 529 plans in north carolina now this is new as of the last couple years uh nc able is uh combined efforts with the north carolina 529 to offer a program called the 529 a the 529a allows people with disabilities to save for their own educational expenses or disability related expenses or potentially for a friend or family member a 529 account is solely to save for qualified expenses qualified education expenses but the 529a is not just for those educational expenses it also allows for people with disabilities to save for qualified disability expenses a good example would be a 529a can be used to defray disability related expenses such as additional metal medical costs not covered by medicaid this is an awesome program if you have a family member that's disabled or perhaps if you are yourself you can check this out at www.nc.savewithable.com for more information now nc able participants may now roll assets from a north carolina 529 plan into an able account used to pay for those qualified disability expenses okay rollovers are limited though fifteen thousand dollars per calendar year 2019. now this is a a really awesome program that we have on cfnc and i'm a visual person so i really like this savings calculator because it helps me to identify what my savings goals are for my teenager and it's neat because you can put one child in or you can add their siblings you can add a bunch of different children and figure out how much it's going to cost to send your family to college so in this instance i have just one child he's a north carolina resident that's a 5th grader my child's actually an eighth grader but for this instance i chose a fifth grader um i then selected that i'd like for him to consider attending a four-year public school and the 529 that i'm working to save on is going to be used to pay expenses for books and housing and tuition and other qualified expenses it shows how much tuition inflation is proposed to be and how much the future cost is at that public university in north carolina it also allows me to calculate my current savings and then contrast that with how much i need to be saving to reach my savings goal and send my child comfortably to a public four-year institution so i think it's a wonderful program it's a really neat tool because it actually shows you the dollar amount that you need to start saving to meet that savings goal for your child and their college attendance again this is a great program it's one of many different opportunities on cfnc.org that's associated with the north carolina 529 account so thank you very much for your time and your consideration um i'm going to turn it back over to tequila thanks get so now we're going to talk about setting up an nc 529 group plan for your employees here are some benefits for your employees again i'm just recapping some of the things that we mentioned throughout the presentation but again there are no enrollment fees or sales charges to open the account again we talked about low minimum contributions of just 25 per contribution there are multiple contribution methods as my colleague mentioned to you and age-based portfolios and individual multi-fund investment options talk about that and again account earnings are free from federal and nc income taxes when used to pay for qualified educational expenditures and savings can be used at virtually any accredited college or university in the country and then also don't forget employees can use it for k-12 tuition student loan repayment as well as apprenticeship programs now i also want to make sure that you're aware this is that the nc 529 plan is part of a larger initiative so you may be familiar with college foundation in north carolina which is a free information service to provide career planning academic planning applying and paying for college information to students and families throughout our state and so of course by your employees participating in c 529 plan they also have access to the other things that are in the cfnc uh family or college foundation north carolina family so um those services again are also available free of charge now let's talk about advantages for your company so if you're planning on offering this as a benefit um to your employees you can do that to payroll deduction and of course there's no charge to do that there are no set up fees or administrative charges to you as an employer and it's open to employees in any state so whether in north carolina or another state this is a national savings program there's low maintenance and there's no governmental reporting let's talk about next steps so if you're planning to offer this through payroll deduction just want to make sure you know what you need to do in order to make that happen so to start a nc 529 group plan you'll have to complete the employer profile so if you look at the right hand side of my screen i'm just giving you a visual so you can see what that form looks like once this has been submitted to our group plan specialist you will obtain a five digit employer code now the group plan specialist for the nc 529 plan will then contact you and we're going to try to determine how your company will transmit employee deductions and last but not least we have an amazing team of nc 529 regional representatives and those representatives depending on where you are in the state you're assigned to one based upon your telephone area code will contact you and then discuss how you want to share this information or this new benefit with your employees now here's some transfer methods for payroll deduction so payroll providers may use any of the following methods i'm about to talk to you about to transfer or transmit deductions with a payroll roster so some examples would be of course a mail chat it could be eft or electronic funds transfer it may even be a wire transfer so these are just some transfer methods for payroll deduction i also want to share some information with you about just employer 529 contacts we want to make sure that you're connected with us and want to work with you and so again you know for day-to-day operations you'll work directly with our nc 529 group plan specialist and just going to help you maintain your account and help with administration of the group plan on behalf of your employees and so if you get a chance after the presentation definitely go to our website you can check out our employer page and see some of the information that we have for you and then this is just some information about how to contact our nc 529 group plan specialist so you'll see the email address there and you can reach us by phone we're available monday through thursday from 8 am until 6 pm and friday 8 am to 5 pm now one of the things that i really love about our organization is that we just don't have business hours but we have people hours so that way we can better assist you as well as your employees now a moment ago i talked to you briefly about your regional representatives and so you can see that here are the seven individuals that i talked to about based upon area code so you can clearly see who your regional representative might be depending on where you are in the state so this is giving you their telephone number their email information as well as you can connect with uh your regional rep through social media and then we do have two spanish services representatives that cover the whole state we have juana hernandez as well as juanes ramirez and so if you have spanish speakers in your organization they do travel to the state and can do presentations in spanish i want to just talk to you a little bit about the services offered by regional representatives and so again these are available to you as an employer and they're no cost for us to come out to participate in those things so we do come out for benefit fairs wellness fairs participating in open enrollment events it could be a webinar lunch and learn series we provide blogs and articles that you can put in your newsletter or you can use it on your intranet posts and then again we do provide college and career planning sessions you know and then again we talked about our spanish speaking services and so again these are free for you to use as you're at as an employer now i will tell you that due to the pandemic that we're experiencing right now we are doing more things in a virtual environment but we're still able to provide you with superior customer service and so that's all the information that we have for you this afternoon to help you understand how the plan works and how you can offer this amazing benefit to your employees as an employer