City National Bank Frequently Asked Questions
GETTING STARTED: Contributions, Rollovers
When am I eligible to start contributing (deferring) to the City National Bank Retirement Savings Plan (“Plan”)?
You are eligible to enter the Plan after completing 3 months of service. You must also be at least 21 years of age and working at least 20 hours per week to participate. Assuming you have completed the above requirements, you may enter the plan and begin making salary deferrals on the first pay date after January 1 or July 1.
What is the difference between deferring and contributing?
You defer a percentage of your pay and your employer contributes that amount to the 401(k) Retirement Plan to be invested as you direct.
How do I start deferring to the Plan?
You start your salary deferrals by completing the Enrollment and Beneficiary Designation Forms and sending the completed forms to:
City National BankHuman Resources – Lily Cayon
25 West Flagler Street
Miami, FL 33130
The Enrollment and Beneficiary Designation Forms are in the "NestEgg U" packet given to you at Orientation. You may also find and print the forms by going to "About Your Plan" on this site. The packet and this site also contain fund fact sheets for the available investment choices and other information.
What happens if I do not return an Enrollment form?
If you do not complete and sign one of the sections on page 2 of the Enrollment Form, you will be automatically enrolled in the Plan on January 1 or July 1 following the date the eligibility requirements are met. Automatic Enrollment will start your Pre-tax salary deferral at 1%. Unless or until otherwise directed, your salary deferrals will be invested in the NestEgg Dow Jones Fund most closely associated with your normal retirement date.
How much can I defer to the Plan?
You can defer up to 100% of your compensation with certain limitations. In 2010, you may defer no more than $16,500.
What are catch-up contributions?
You are eligible to make additional contributions, called catch-up contributions, to the Plan if you are 50 years of age or older or turn 50 any time during the year. In 2010, eligible participants may make additional catch-up contributions of $5,500.
Is there a minimum I can defer to the Plan?
The minimum you can defer to the Plan is 1% of your compensation. The Plan document requires that you defer in 1% increments.
How often can I make changes to my salary deferral?
You may change your salary deferral percentage anytime by selecting “My Retirement Account” above, enter your User ID and Password, select Participant, then select Contribution and change your deferral percentage. Requests will be processed as soon as administratively possible.
Do you like the idea of an easy way to increase your salary deferral each year?
You may sign up for Bump It! to automatically increase your contribution by 1% every January 1. To sign up select “My Retirement Account” above. The contributions section allows you to enroll in Bump It!
Does City National Bank match my deferral to the Plan?
If you are eligible to receive a matching contribution, City National Bank will make an enhanced safe-harbor matching contribution to your Plan account equal to 100% of your salary deferrals that do not exceed 5% of your compensation for the Plan Year.
Why must I fill out a Beneficiary Designation Form for our Plan?
You must specifically designate who you want to receive your Plan benefits in the event of your death. If you are married and want to designate someone other than your spouse, your spouse must also sign and have notarized the Beneficiary Designation Form.
How do I change my investment choices and how often may I change my investment choices?
You may change future investment elections or current investment mix at any time by using the Voice Response Unit or by clicking "My Retirement Account" above.
How do I roll my 401(k) Account from a previous employer into the Plan?
The first step is to request a distribution form from the Plan Administrator or Trustee of your previous 401(k) plan. Generally, you are required to complete and sign a rollover election form indicating that you want a direct rollover distribution to your new employer's 401(k) plan. When you complete the rollover election form indicate that the check distributing your account should be made payable to: "City National Bank Retirement Savings Plan F/B/O (your name)." The check should be mailed to:
City National BankHuman Resources – Lily Cayon
25 West Flagler Street
Miami, FL 33130
How do I roll a Conduit (Rollover) IRA into the Plan?
The first step is to request a distribution form from your broker or mutual fund. Generally, you are required to sign a form indicating that you want a direct rollover distribution to your employer's 401(k) plan. When you complete the required form, indicate that the check should be made payable to: "City National Bank Retirement Savings Plan F/B/O (your name)." The check should be mailed to:
City National BankHuman Resources – Lily Cayon
25 West Flagler Street
Miami, FL 33130
Contributions, Rollovers (Continued)
How long will it take to rollover a 401(k) or IRA to our Plan?
Typically 2 to 4 weeks. There are situations where it can take longer. Be sure to keep a record of where and to whom you sent your distribution forms so you can follow up if there is a delay.
INVESTMENTS
What are the investment options offered in the Plan?
You have 24 investment options available in your 401(k) Retirement Plan. You are able to purchase 19 mutual funds covering a wide range of investment categories and 5 asset allocation funds with targeted retirement dates. The Plan’s investment options will allow you to select investments appropriate for your age and individual risk tolerance. To view the actual funds available, you may visit the "Fund Choices" section of this site.
GENERAL
How do I find my 401(k) account balance?
Quarterly statements are mailed to your home address in April, July, October and January. You may also find out your account balances by calling the Voice Response Unit or by clicking "My Retirement Account" above.
I misplaced my User ID to access my retirement account online. How do I get a new one?
To obtain a new User ID, you may call 1-866-412-9026 and speak to a Customer Service Representative. The Customer Service Representative will mail a new User ID to your home address. The Customer Service Representative will not give you a new User ID over the telephone.
I'm having trouble accessing my accounts through the Internet.
The User ID you received is case sensitive. Be sure to use capital letters when indicated and be careful not to confuse the letter O with the number 0.
Does my participation in the Plan impact my ability to contribute to an IRA?
You are able to contribute to IRAs and Roth IRAs when covered by an employer sponsored retirement plan. The IRS still requires you to abide by several income and participation rules that affect the deductibility of, or ability to contribute to IRAs or Roth IRAs. There are several rules and regulations covering IRAs and Roth IRAs and you are strongly urged to review your circumstances with your financial advisor or tax preparer.
DISTRIBUTIONS, VESTING
How does the IRS calculate the penalties and taxes if I take money out of the Plan before 59 1/2?
Distributions to a participant from a qualified retirement plan before age 59½ are subject to 20% Federal withholding and an early withdrawal penalty. There are exceptions to the early withdrawal penalty for pre-59½ withdrawals. Please consult with your financial or tax advisor to see if those exceptions apply to your particular situation.
If I take a distribution from the Plan, how much does the IRS require to be withheld?
Generally, a distribution made directly to a participant from a qualified plan is subject to 20% federal withholding. This withholding occurs at the time the distribution is made. If the distribution is a hardship distribution, it is subject to 10% federal withholding unless you elect no withholding.
What happens to my 401(k) balance if I leave the Company?
Once you have separated from service with City National Bank, you may request a direct transfer to another retirement account or a distribution of your benefits. If your Plan balance is less than $1,000, the Plan will automatically distribute your balance. If your Plan balance is $1,000 or more, you have the option to leave your funds in the Plan or you may request that the funds be rolled over to an IRA or another employer's retirement plan.
How do I determine my vesting percentage?
Vesting is determined based on your years of service. Your vesting status in Employer Contributions can be found on your quarterly City National Bank Retirement Savings Plan statement or by clicking "My Retirement Account" above and selecting "Account Balances."
When will I be 100% vested in my 401(k) salary deferrals?
You are always 100% vested in contributions and any related earnings on those contributions you make to the Plan.
When will I be 100% vested in the company matching contributions?
You are 100% vested in any matching contributions after you complete 6 years of service. You receive credit for one year of vesting service each time you pass your hire anniversary date with City National Bank. After 2 years of service you are 20% vested. After 3 years of service you are 40% vested. After 4 years of service you are 60% vested. After 5 years of service you are 80% vested. After 6 years of service you are 100% vested.