Nomad is Now Offering 401(k)!
Introducing the Nomad 401(k) Plan
We’re excited to announce our new 401(k) plan presented by Principal, in partnership with Nomad Health. The new 401(k) offering will help you better prepare for your journey to retirement. And don’t worry, it’ll be easy! You can customize your saving goals, manage your investments and take advantage of employer matching. Learn more about Nomad’s 401(k) plan and why 401(k)s are a great way to save for retirement below.
What is a 401(k) plan?
According to Nerd Wallet, a 401(k) is a retirement saving and investing plan that employers offer. This plan allows you to contribute money directly from your paycheck into the funds you choose and helps you save for retirement. These funds are then given a tax break for being part of your 401(k) contribution. Depending on the plan you have these tax breaks may come when you contribute money or when you withdraw the money for retirement.
Why have a 401(k)?
1. Tax Benefits
By contributing to a 401(k) plan you can save on your federal income taxes. Since contributions to your 401(k) are taken straight out of your paycheck before taxes, your total taxable income decreases, which means you owe less in income taxes. These pre-tax contributions get tax-deferred until your retirement when you decide to withdraw them. And your contributions are automatic which makes saving simple and effortless!
2. Total Control
You get to control how much you want to put into your account and you have the flexibility to change your contributions levels whenever you see fit. Furthermore, your previous savings belong to you and you can transfer them straight to Principal so you get to keep any previous retirement plan earnings you had.
3. Time is on Your Side
The earlier you set up your 401(k) the quicker your money can grow. Your savings can also collect compound interest. This is when you earn interest on the principal amount of your investment plus any accumulated interest. This can have a big impact on long-term investments and can be powerful when it comes to retirement.
How to sign up for Nomad’s 401(k) Plan
Any travelers currently on assignment with Nomad are eligible for our 401(k) plan. In fact, clinicians are eligible starting the first day of their assignment! Clinicians can enroll by:
- Visiting principal.com/Welcome
- Using the Principal app
- Texting ENROLL to 78259
Please allow up to 1 week for your information to be processed by Principal. If you have any issues, you can call Principal for help at 800.547.7754 7am-9pm CST, Monday - Friday.
How does Nomad’s 401(k) work?
Non-stipend wages; i.e. wages earned from time worked (or on-call) are eligible for your 401(k) contributions, however, housing, meals, and incidental per diem stipends are not eligible wages. Of your eligible wages, Nomad clinicians can contribute up to 100% of their eligible wages. If you decide to change your contributions- no worries! Nomad clinicians can change their contributions as frequently as they want. Once you make a contribution change you should account for a 1-2 week delay so Principal can correct your contributions with Paycom.
Nomad also offers employer matching for your 401(k) savings. Travelers who have been with Nomad for at least 12 months and have completed at least 1000 service hours are eligible to have their contributions matched. The 12 month period starts from your original assignment start date, so if you’d like to take a break between assignments, your eligibility won’t be impacted. Once you qualify, Nomad will match 50% of the first 3% of contributions, and this employer match vests immediately.
Helping build a better future
Saving for retirement may seem scary but it doesn’t have to be. There are a lot of unknowns when it comes to the future but your retirement is something that can be easier to predict. It can be painless to set up money to contribute to your 401(k)- even if it’s a very small amount- and watch your savings grow over time. Nomad is excited to offer clinicians this new benefit and help you save for the future!
https://www.johnhancock.com/ideas-insights/5-benefits-of-investing-in-401k-plan.html#:~:text=Contributions to a traditional 401,or take the standard deduction.
https://www.nerdwallet.com/article/investing/what-is-a-401k#:~:text=A 401(k) is a,a list of available offerings).
March 10, 2022