Our New 401(k) Recordkeeper: John Hancock Financial
Questions and Answers
401(k) RECORDKEEPER CHANGE
What’s changing with the 401(k) Plan?
John Hancock is replacing T. Rowe Price as the Recordkeeper of the Hollywood Feed 401(k) Plan, our retirement savings plan.
The transition will start March 22 and is expected to complete by April 14. There is a blackout period from March 22 – April 13 where you won’t have access to your 401(k) account.
The basic features of the Hollywood Feed 401(k) Plan are not changing (such as how much you can contribute, or the company matching contribution) but you will have some different investment options, as well as a new and improved system for accessing the plan and making transactions.
If you already participate in the Hollywood Feed 401(k) Plan, your account and balance will automatically be transferred to a new account with John Hancock during the transition period.
If you’re a PetPeople employee, your 401(k) Plan already has John Hancock as its Recordkeeper. However, your 401(k) Plan will be merged into the Hollywood Feed 401(k) Plan, and the only change you’ll see is the plan name.
What is a 401(k) Recordkeeper and what do they do?
It’s a service provider that manages the day-to-day operations of the 401(k) Plan. This includes administration and recordkeeping, offering investment options, facilitating and recording transactions, and following Plan rules and government regulations.
Why is Hollywood Feed making this change?
We are making this switch to John Hancock to provide you with enhanced service, an improved transaction platform, and better investment options.
The administrative fees paid by you and Hollywood Feed will be lower.
How does this affect me?
If you’re already a participant in the Hollywood Feed 401(k) Plan, you won’t have access to your account during the transition from March 22 through April 13, also known as a blackout period. You should have full account access in the John Hancock system as of April 14, 2023.
The deduction and company match that is reflected on paychecks received on March 24 and 31 will be held by Hollywood Feed and should be uploaded into the John Hancock system by April 7, 2023.
If you’re a PetPeople employee, your 401(k) Plan will now be the Hollywood Feed 401(k) Plan, with all the rules that apply.
New participants won’t be able to join the 401(k) Plan during the blackout period. Your next opportunity should be no later than April 14, 2023.
What is the blackout period?
The blackout period is when the Plan’s assets are moved to John Hancock, new investment options are added to the Plan, Hollywood Feed 401(k) Plan rules are put in place and the new service system is set up.
The blackout period is March 22 through April 13. During this time, you won’t be able to access your account, make contribution or investment changes, or other account transactions. However, you can register yourself on the John Hancock website and access educational information about the Plan and the enrollment process.
Your account should be fully restored as of April 14, 2023.
What do I need to do for the transition?
Your account with John Hancock will automatically be created for you.
Starting March 22, you can register yourself on the John Hancock website, but you won’t have full account access or see your balance until the transition is complete on or around April 14, 2023.
View the FAQ below for instructions on how to register your account.
What will happen to the money in my account?
Your 401(k) Plan balance will automatically be transferred to your new John Hancock account between March 22 and April 13.
Will I have the same investment options?
With the transition to John Hancock, you will have investment options similar to your current investment options.
Investment balances in your 401(k) Plan account will be transferred to the corresponding investment in your new John Hancock account.
- If you have money in an investment that is not the same as any of the new John Hancock investment options, that money will automatically be transferred to the most similar John Hancock investment option.
- Similarly, your future contributions will be made to the investments that best correspond to your investment choices at the time the transition period begins on March 22, 2023.
You can change your contributions and investments at any time after the transition blackout period ends on April 13, 2023.
Remember that you cannot make investment changes or other account transactions, during the blackout period of March 22 through April 13, 2023.
How do I register my 401(k) Plan account with John Hancock?
You can register your 401(k) Plan account at myplan.johnhancock.com or by calling 800-395-1113 (or 800-363-0530 for Spanish). You’ll need the following information to register:
- Your Social Security number
- Your Contract Number, which is 104277
- Your Enrollment Access Number (EAN), if asked, which is 110550
Remember that during the transition blackout period of March 22 through April 13, 2023, you will only be able to access background information about the Plan and how to enroll. After the blackout period is over, you will have full access to see your current Plan balances and make changes and other transactions.
BASICS OF THE HOLLYWOOD FEED 401(k) PLAN
I’m not familiar with the 401(k) Plan. Can you give me a quick overview?
You decide how much to contribute (up to IRS limits) through convenient payroll deductions. Hollywood Feed matches your contributions dollar-for-dollar, up to 4% of your eligible pay.
You can contribute on a before-tax or after-tax (Roth) basis:
- Before-tax: Your contributions are deposited pre-tax, which reduces your current taxable income. This means your contributions and their earnings are taxed later when you withdraw them out of the Plan.
- Roth after-tax: Your contributions are taxed before they’re deposited into your account. This means they’re not taxed later when you withdraw them (and neither are their earnings, as long as you keep your money in the plan at least five years).
How much can I contribute to the 401(k) Plan?
The IRS limit for 2023 is $22,500, or $30,000 if you’re 50 or older.
When can I access the money in my 401(k) Plan?
Because the 401(k) Plan is intended to help you save for your retirement, you are generally not allowed to take money out of the Plan before you reach age 59 ½. A withdrawal due to Hardship is the only approved early withdrawal and penalties will apply. This is a government rule.
If you leave Hollywood Feed before retirement, you can choose to:
- Leave your money in the Hollywood Feed 401(k) Plan until you retire, or
- Roll your Hollywood Feed 401(k) Plan directly into your new employer’s similar retirement plan (if your new employer has a similar plan and it accepts rollovers) or into an Individual Retirement Account (IRA). If you follow the rules for a direct rollover, you will avoid penalties for taking money out of our Plan before age 59 ½.
- Have your money paid directly to you. Generally 20% is withheld for taxes, and there’s a 10% penalty if you’re under age 59 ½.
I’m not an investment expert! How can I know where to invest my contributions to the Plan?
Don’t worry about not being an investment expert. Most people aren’t. But the Hollywood Feed 401(k) Plan has features to make investment choices easier for you.
- Target Date Funds: These contain a mixture of several investments, based on an assumed target date for your retirement at about age 67. Target Date Funds automatically adjust their mix of investments to keep them appropriate as your retirement age comes closer.
- Investment and retirement planning: Hollywood Feed gives you access to experts at Duncan Williams Asset Management who can provide guidance and help you understand your investment options in the 401k Plan. Contact a plan advisor at 901-435-4250 or [email protected].
If you are more knowledgeable about investments and retirement planning, you can select your own mix of investments if you wish. You may also use both a Target Date Fund and additional Plan investment options of your choice.
If you want to educate yourself about investing in general, you can also use the informational resources the Plan makes available to you.
Of course, you also have the option to hire your own personal investment and tax experts to give you advice.
What if I enroll in the 401(k) Plan, but don’t make any investment choices?
Then your contributions will be placed in a “Qualified Default Investment Alternative” or QDIA. This is the Target Date Fund with the target date closest to the date you reach age 67. This is determined using company records of your birthdate.
| Year of your birth | Target Date Fund that would be your default investment option |
|---|---|
| 1991 or later | 2060 Fund |
| 1986-1990 | 2055 Fund |
| 1981-1985 | 2050 Fund |
| 1976-1980 | 2045 Fund |
| 1971-1975 | 2040 Fund |
| 1966-1970 | 2035 Fund |
| 1961-1965 | 2030 Fund |
| 1956-1960 | 2025 Fund |
| 1951-1955 | 2020 Fund |
| 1946-1950 | 2015 Fund |
| 1945 or earlier | 2010 Fund |
What’s this “company contribution” that you mentioned earlier?
This is a very important feature of the Hollywood Feed 401(k) Plan! In addition to your own contributions to the Plan, Hollywood Feed also makes contributions to your account!
To encourage you to participate in the Plan, Hollywood Feed makes a company matching contribution. The company matches your own contributions to the plan dollar-for-dollar, up to 4% of your eligible pay. This is basically free money that you get for using the Plan! Experts would generally advise you to contribute at least 4% of your pay to the Plan, if you can, so you can get the maximum company match.
Please note that not all companies with a 401(k) Plan make company contributions! And company matching contributions are very unusual in the retail field. If you don’t already participate in the 401(k) Plan, please consider joining the Plan so you can take advantage of this special opportunity.
What is vesting?
In 401(k) Plan information, you may see the terms “vesting” or “being vested.” These terms refer to your ownership of money in your 401(k) Plan account that cannot be forfeited, even if you leave Hollywood Feed.
You are always 100% vested in your own contributions, the company match to the Plan and their investment earnings.
Over time, you also become vested in company discretionary contributions (if any) and their investment earnings. If you leave Hollywood Feed, you keep the portion of these balances that are vested and forfeit any that are not.
My retirement is a long way off. Why should I care about the 401(k) Plan?
The sooner you start saving for retirement with the 401(k) Plan, the more time your money has a chance to grow. You have more time to take advantage of the potential for long-term gains, and ride out short-term ups and downs in your investments’ value.
Even if you don’t contribute a lot at first, by starting early you could end up with more money than if you wait until later and make larger contributions.
If you’re closer to retirement, you can still use the 401(k) Plan to save and invest. Some savings are better than no savings!
When can I join the Plan?
You can join the Hollywood Feed 401(k) Plan after attaining the age of 18, one year of service and 1,000 hours worked with our company. If you’re a PetPeople employee who was acquired by Hollywood Feed, your PetPeople service also counts.
New participants won’t be able to join the 401(k) period during the blackout period. Your next opportunity should be no later than April 14, 2023.
When can I change my contributions to the Plan, or my choice of investments?
Once you are a participant in the Plan, at any time you may:
- Increase, reduce, stop or restart your contributions to the Plan.
- Change your choice of investments where your future contributions will go.
- Move your existing balances to different investment options within John Hancock.
Can I get my money out of the Plan early if I really need it?
The 401(k) Plan is intended to help you save for your retirement, with tax advantages. As a result, government regulations and Plan rules restrict your ability to withdraw money from the Plan before you reach age 59 ½.
Hardship withdrawal: If you have a financial emergency, in certain specified circumstances you may be allowed to make an early “hardship withdrawal” from the Plan. However, early withdrawal penalties equal to 10% of your withdrawal, plus applicable income taxes, will apply.
Please note that when your money isn’t in the Plan, it doesn’t have the opportunity to earn an investment return and grow. You should avoid borrowing from your Plan account or making an early withdrawal if possible. These are for serious needs and emergencies.
FOR MORE INFORMATION
Who do I contact with questions about the 401(k) Recordkeeper change?
If you have questions about this change, please contact either:
- Stephanie Gordon, HR Administrator: [email protected] or 901-707-7807.
- Melanie Bostick, Payroll Manager: [email protected] or 901-707-7815.
Where can I find more details about the 401(k) Plan and my investment options?
You can see additional information about the Plan and your investment options at myplan.johnhancock.com. This includes copies of some Plan mailings and notices that have recently been sent to you.
Where can I find general information about investing and planning for retirement?
There are educational materials available at myplans.johnhancock.com.
Where can I get advice about investing and using the 401(k) Plan as part of my investment strategy?
Hollywood Feed cannot give you specific investment advice, and of course you must be the one who makes any decisions about your financial future.
However, Hollywood Feed does provide access to expert investment advisors available to you at Duncan Williams Asset Management. Contact a Plan Advisor at 901-435-4250 or [email protected].