Learn about your benefits

Your income in retirement will likely come from many sources. In addition to Social Security, you might have savings from other employers, and other assets, such as New York Life retirement benefits.

Click on the graphic to see how it all adds up.

About nonqualified benefits.

The company provides two nonqualified plans to certain eligible employees that supplement the retirement benefits available through the qualified 401(k) Savings Plan and Pension Plan:

• The Excess EPSI (401(k) Savings) Plan
• The Excess Benefit (Pension) Plan

These plans provide supplemental benefits above the IRS limits. In addition, the company provides nonqualified deferred compensation plans to certain eligible employees.

Learn more: See if you’re eligible for these benefits at Your Benefits Resources (YBR).

Our savings and retirement benefits are designed to grow with you as your career grows. They’re also valuable, competitive, and one-of-a-kind, with special features that build off of each other to help you save more, faster.

Learn how:

• To get the most from your 401(k) Savings Plan; and
• Your Retirement Plan works to help you achieve your financial goals or visit Your Benefits Resources (YBR) at http://digital.alight.com/newyorklife

Roth contributions provide another way the 401(k) Savings Plan can help you prepare financially for your future—if they're a good fit for you.  

Learn about all your 401(k) contribution options by clicking on the next section: "Understand your contribution options".

Roth contributions are different from pre-tax contributions because they're  taxed at the time you make them. This means tax-free income in retirement—you don’t owe any taxes when you receive a qualified distribution* from your Roth account.

Roth contributions are subject to the same annual limit as pre-tax contributions. In 2024, this limit is $23,000. The total of your Roth 401(k) and pre-tax 401(k) contributions can't exceed this limit.

*You must be at least age 59½ (or disabled) and the Roth account must be at least five years old at distribution.

Pre-tax or Roth?

It comes down to your tax bracket and whether you prefer a tax savings now or tax-free income during retirement. In simple terms, if you think you might be in a higher tax bracket in the future when you take the money out, Roth contributions can be appealing. If you think you'll be in a lower tax bracket when the money comes out, pre-tax contributions might make more sense.

What about your current balances?

You can convert all or a portion of your existing 401(k) Savings Plan balances to a Roth account (called an "in-plan conversion"). However, be sure to consult with a financial or tax advisor to understand the tax implications before making a conversion.

Learn about how to get the most from your 401(k) Savings Plan.

The type of contributions you make to the 401(k) Savings Plan depends on your savings goals and your preference for when you want to pay taxes on contributions and their earnings. There is no "wrong" type of contribution, and the only "right" type is what works best for you.

Here’s a quick side-by-side comparison of the different contribution types.

¹The Internal Revenue Code limits the maximum benefits salary that can be used to calculate contributions—for 2024 that limit is $345,000.00. If you’re considered highly compensated (for 2024, your 2023 earnings exceeded a set amount), the maximum amount you can contribute to the plan is different.

²You must be at least age 59½ (or disabled) and the Roth account must be at least five years old at distribution. 

Learn more about the advantages of each type of contribution.

The 401(k) Savings Plan offers Target Date Funds as part of its investment lineup.

• What they are: These mutual funds are built on a basic principle—that your retirement investing needs depend on your age. Target Date Funds are “funds of funds”—meaning that they seek to achieve their investment objectives by investing primarily in other mutual funds. Investment professionals make the complicated investment decisions, such as asset allocation, for the investors in the funds.
• How they work: The funds are offered in 5-year increments. Over time, the mix of investments in each fund changes according to a pre-determined “glide path.” Each fund becomes more conservative in its investing approach as it nears its target retirement date to help reduce risk. If you have a ways to go until retirement, a fund’s investment mix is more likely to include a higher percentage of funds with more equity securities and carry more risk. As the target date nears, a fund’s investment mix is likely to shift to a less risky, more conservative mix of funds with more fixed-income securities. Like other plan investments, Target Date Funds should be monitored and adjusted if your retirement date or other life circumstances change.
• How to choose the right Target Date Fund for you: All you have to do is select the fund with the target year closest to your retirement date. Then, let the investment professionals do the rest.
• Considerations when investing in Target Date Funds: While diversification and shifting to a more conservative investment mix over time can help to manage risk, they do not guarantee earnings growth or that you will have sufficient assets for your retirement. You can lose money by investing in Target Date Funds, and these losses could occur near or following your retirement. In addition, since the Target Date Funds are investing in other mutual funds, fees and expenses may be higher than those for mutual funds that invest directly in stocks and bonds. Additionally, because investment professionals perform asset allocation and investment selection in these funds, the fees for Target Date Funds are generally higher than the fees for Core Funds.
• For more information: For more information about the Target Date Funds, you should review the prospectuses, fund fact sheets, and other investment-related information available on Your Benefits Resources (YBR) at http://digital.alight.com/newyorklife/.

Saving for retirement doesn’t have to seem daunting—it’s possible and within your reach. Here are five simple ways to save a little extra today, for tomorrow.

1. Create a budget and stick with it.

Many budgeting tools are available for free, online or through your personal bank. Or, go to Your Benefits Resources (YBR), link to “Tools and Calculators” under the “Savings and Retirement” tab, and then click the “Budget to Save More” worksheet.

2. Build an emergency fund.

Experts recommend having a “what if” emergency fund of several months’ pay to keep you afloat in unexpected circumstances—such as if your or your spouse’s job is lost, you can’t work because of a serious illness or injury, or your home needs significant repairs.

3. Save more than you think you can.

You can contribute up to 25% of your eligible base salary in the 401(k) Savings Plan, subject to IRS limits. For 2024, you can save $23,000 ($7,500 more if you are or will be age 50 or older during the year), in pre-tax and/or Roth contributions. You elect your contribution rates as a percentage of your benefits salary (you elect a dollar amount for catch-up contributions), and you can change your contribution rate at any time.

4. Reduce just one luxury expense.

Wait until next year to buy the latest and greatest high-definition television—when you can likely get it for half its initial cost—and redirect that money to retirement savings.

5. Focus on your physical health.

Studies show good health—and avoiding stress related to your finances—could potentially save you thousands of dollars in health care costs, long-term care, and disability insurance premiums. Take advantage of New York Life’s health and preventive care benefits at no cost to you, and make your physical health part of your smart retirement strategy. Learn more about your health benefits in the “Health and Insurance” section or on Your Benefits Resources (YBR).

Need help deciding exactly how much to save?

The Project Your Income tool will estimate how much you may need to save to reach your retirement goals, so you can determine how aggressive (or conservative) you may need to be.

To find the tool, visit Project Your Income from the “Savings and Retirement” tab of Your Benefits Resources (YBR).

You can learn more about these funds on Your Benefits Resources (YBR) under “Savings and Retirement” and “Fund Prospectuses.” You can also request a copy of fund prospectuses by calling the New York Life InfoLine at 1-888-513-4636 and speaking with a Benefits Center representative.

Need additional help?

Choosing the right mix of investments based on your savings strategy can be complicated. So leave it to the experts. Consider using the online or professional management resources available to you through Alight Financial Advisors, LLC (AFA)*.

To connect with AFA:

• Go online: From Your Benefits Resources (YBR), select “Investment Advice” from the “Savings and Retirement” tab; or
• Speak with an advisor: Call 1-888-513-4636, select “401(k) Savings and Deferred Plans,” and then select the “Investment Advice” option. Advisors are available between 9 a.m. and 9 p.m. Eastern Time, Monday through Friday. 

The Fixed Dollar Option.

One of your investment options is the Fixed Dollar Option. This is a stable investment option that offers a guaranteed return on the money you invest. That’s why it’s the “default” plan if you don’t take action to choose your investments.

Prior to the end of each year, a “compound annual interest yield” for the coming year is announced, and any money invested (existing balances and new contributions) during the following year earns that rate of interest.

Despite the guaranteed return you realize with the Fixed Dollar Option, it’s important to review all of your fund options and customize your investments for your situation. Investing in the Fixed Dollar option alone may not be enough to help you reach your retirement savings goals. 

* Important Note:

New York Life is not using New York Life Agents who are investment advisory representatives of Eagle Strategies, a New York Life company, for this process because ERISA imposes significant restrictions on investment advice arrangements between investment advisers (like New York Life’s Eagle Strategies) and related retirement plans (like New York Life’s own 401(k) Savings Plans). Thus, we cannot use any New York Life Agent to advise participants in New York Life’s own 401(k) Savings Plans on their 401(k) account balances. The advice services being offered through Alight Financial Advisors are not subject to these restrictions. In addition, as noted above, the advice being offered through Alight Financial Advisors is strictly limited to 401(k) account balances. We want to ensure that all New York Life Agents and Employees are able to make informed decisions about their 401(k) retirement savings and want to provide the resources to do so, should they need help.

The 401(k) Savings Plan (“Plan”) has hired Alight Financial Advisors, LLC (AFA) to provide investment advisory services to plan participants. AFA has hired Financial Engines Advisors, L.L.C. (FEA) to provide sub-advisory services. AFA is a federally registered investment advisor and wholly owned subsidiary of Alight Solutions LLC. FEA is a federally registered investment advisor and wholly owned subsidiary of Edelman Financial Engines, LLC. Neither New York Life, the Plan, AFA nor FEA guarantee future results. All marks are the exclusive property of their respective owners.

© 2024 Edelman Financial Engines, LLC. All rights reserved. Used with permission.

Alight Financial Advisors, LLC (AFA) provides independent and unbiased investment advice through its partnership with Edelman Financial Engines. Neither sells investments or receives commissions based upon their recommendations.

Empower yourself:

• Do your homework: Before investing in any 401(k) Savings Plan investment option you should review important information, including fund fees. Fund prospectuses provide details about each fund, including a summary of the fund, its price, performance data and charges, which securities the fund invests in, and details about the fund managers. Fund prospectuses are located on the “Savings and Retirement” tab on Your Benefits Resources (YBR).
• Spread out your money: A diversified portfolio is an important element of long-term planning. Broadly defined, “diversification” means having a portfolio with a variety of asset classes—stocks, bonds, and cash. Diversifying and having a mix of investments spreads out your risk and makes your savings goals less likely to be hurt if a single investment performs poorly. You should review your choices and asset allocation regularly to ensure you stay on track with your goals.
• Remember the power of compounding: When it comes to saving for retirement, the sooner the better. This is in large part due to the concept of compounding. Compounding refers to the ability of your earnings to earn interest. This means that not only do you earn interest on your original savings, but you can also earn interest on the interest.

Click on the graphic to see more.

• Avoid taking loans: It may seem like a good way to access your savings, but taking money out of your 401(k) Savings Plan account means you’ll lose money. You’re not earning interest on that money, and you are missing out on the compounding. You’ll also pay taxes twice on the loan amount—unlike your 401(k) contributions, loans are repaid with dollars that have been taxed, and, you are taxed again on those dollars when you withdraw them from your account at retirement.
• Work with a professional: Most people need guidance in their 401(k) Savings Plan investments. Talk with a financial, tax or legal specialist about your retirement strategy. New York Life offers special resources to help you do just that.