your journey to financial well-beingnew for 2016: convert existing savings to a roth 401(k). if...

How’s your financial fitness?Being financially fit is an important part of achieving optimal well-being. Feeling anxious and stressed due to financial concerns can make it difficult to be your best in all aspects of your life. It can also open the door to health problems down the line.

As we move into a new year, it’s a good time to assess your financial health to see if you are on track or if your plan needs fine-tuning. The tips and resources in this guide can help.

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FAST FACTS: SEE WHAT WE ACCOMPLISHED.

92%

of employees are contributing to the

401(k)/Investment and Savings Plan (ISP)

17%

of employees have used the Financial

Engines Online Advice Tool – at no cost

72%

of employees contribute at least 6 percent

of their eligible pay to the ISP to receive

The Hartford’s full matching contribution

More than 6,000employees have worked with an Ayco financial coach –

at no cost

Together we’re learning how to get healthier – not just physically, financially too:

FINANCIAL CONCERNS WEIGHING ON YOUR MIND?

Get help by talking with a counselor from our Employee Assistance Program (EAP). Call 1-800-563-4760, day or night, to schedule a confidential appointment. You and your family members each have five counseling visits per issue per year at no cost.

Earn wellness points along the way Participate in financial planning activities – such as a webinar or financial counseling session – and you can earn up to four wellness points toward health plan premium credits if you are enrolled in The Hartford’s health plan.1

Start by visiting the Aycofn® website, complete a financial planning activity, then fill out a short affidavit on the My Wellness at Work portal.

1 To be eligible to receive a health premium credit, you must be enrolled in The Hartford’s health plan. Plan members on long-term disability or COBRA and employees in Hawaii are not eligible for health premium credits. In addition, to receive health premium credits after Q1 2016, you must complete the health risk assessment, which becomes available January 2016.


http://www.aycofn.com/thehartford.afn

http://www.mywellnessmywork.com

Gauge how much you should saveWhen building your savings for now or down the road, getting started is often half the battle. While there’s satisfaction in knowing you’ve taken action – having a goal will help you stay on track.

These resources can help you assess where you are and define your short-term and long-term goals:

• Ayco financial coach – Reviews your financial situation at no cost to you. Just call 1-866-217-8691.

• “Are you on course for retirement?” – View this animated video on Aycofn® which provides examples of the salary amount that may be needed at retirement based on an individual’s age and various assumptions.

• Financial Engine’s investment planning tools and services – Provides information and tools to help you

meet your savings goals. After you log on to Fidelity NetBenefits,® access the following resources by clicking anywhere within the Financial Engines box on the right side of the home page. Then select the “Financial Engines” link.

» Online Advice tool: Provides investment advice for your 401(k)/Investment and Savings Plan account at no cost to help you build your investment strategy on your own. After you reach the Financial Engines page, choose the “Retirement Plan” tab and click “Get Advice” to access your personalized retirement advice.

» Professional Management Service: Invests your ISP account for you for a fee. After you reach the Financial Engines page, choose the “Retirement Plan” tab and click “upgrade my service” at the bottom of the page. Or talk to a Financial Engines Advisor about Professional Management by calling 1-800-601-5957.

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ASSESS THE HEALTH OF YOUR FINANCIAL PLAN.

Got 5 minutes? Get a financial check-upThe 5 Minute Financial Check-up can help you prioritize cash flow, debt management, investment planning, taxes and more. Complete a short affidavit on the wellness portal once you’ve completed the check-up to receive one wellness point.

A BENEFITS SNAPSHOT CAN HELP YOU PLAN

Having a complete view of your current financial

situation can help you determine where you want to

be. The My Total Rewards tool helps by estimating the

total possible value of your benefits at The Hartford,

including applicable cash and incentive compensation,

retirement savings, health and wellness, time off and

career and family support. Access the tool, which is

updated quarterly, on myHR.



https://nb.fidelity.com/public/nb/TheHartford/home


http://www.mywellnessmywork.com

https://www.myhr.com/TheHartford/

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THIS INFORMATION CAN HELP YOU DECIDE

The Hartford’s 401(k)/Investment and Savings Plan (ISP) allows for Roth 401(k) contributions. What’s the difference between these contributions and traditional 401(k) contributions? And how do you select an approach that’s best for you? The decision really comes down to whether you want to pay income taxes now or later.

Here’s a breakdown:

• Traditional 401(k) = pay no taxes now: Your contributions are deducted from your paycheck and added to your ISP account before income taxes are withheld, which lowers your taxable income. When you withdraw the money in the future, you pay taxes on the contributions and any associated investment earnings at that time.

• Roth 401(k) = pay taxes now, not later: Your contributions are deducted from your paycheck and added to your ISP account after income taxes are

withheld. So, you pay the taxes upfront. But when you withdraw the money in the future, you won’t need to pay any taxes on the distribution or the associated investment earnings as long as the withdrawal is considered a qualified distribution.2

Traditional (before-tax) contributions may work better if you think you’ll be in a lower tax bracket3 when you begin receiving your retirement savings. Generally, Roth contributions may be more advantageous if you think you’ll be in a higher tax bracket during retirement. Why? Because it’s better to pay, for example, a 25 percent tax rate on your contributions now than a 35 percent tax rate on your contributions and any associated investment earnings in the future.

UPDATE YOUR CONTRIBUTIONS ANY TIME

Go to NetBenefits® and choose the Quick Links menu under the ISP. Then select “Contribution Amount.”

IS ROTH 401(k) RIGHT FOR YOU?

2 Only “qualified distributions” are not subject to federal income tax. A qualified distribution is one that is taken at least five years after the year of your first Roth Contribution and after you have attained age 59½, become disabled or die. If your distribution is not a qualified distribution, you will be taxed on the Roth 401(k) contributions earnings when they are distributed.3 Federal and state tax rates are subject to change and can vary depending on income and filing status. Consult with your tax advisor or Ayco coach about your personal tax situation and for help determining which contribution type may be more appropriate for you.

You don’t have to choose one or the otherObviously, it’s difficult to predict what tax rates will be in the future. But tax diversifying – or spreading your investments across tax-deferred and tax-free accounts – is a strategy that you might consider to help manage tax obligations in retirement. To hedge your bets, you can make both traditional 401(k) and Roth 401(k) contributions at the same time, up to a combined limit set by the Internal Revenue Service.

The Roth Modeler on NetBenefits can help you understand the differences between Roth 401(k) (after-tax) contributions and traditional 401(k) (before-tax) contributions. After you log on, go to the “Planning” tab to access the Roth Modeler.

For personal guidance, call an Ayco financial coach – at no cost to you – at 1-866-217-8691.

continued

TRADITIONAL 401(k)

ROTH 401(k)

$8,000

$10,000



https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-401k-and-Profit-Sharing-Plan-Contribution-Limits


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NEW FOR 2016: CONVERT EXISTING SAVINGS TO A ROTH 401(k).

If you’d prefer to pay taxes on your existing traditional 401(k)/Investment and Savings Plan (ISP) savings now instead of when the money is withdrawn in the future, an enhanced feature will be available next year to help you do so.

As of Jan. 1, you may be able to take advantage of an expanded in-plan Roth conversion feature, which allows you to convert eligible ISP savings to a Roth 401(k) account as long as they are vested, even if that money was initially contributed on a before-tax basis.

Currently, an in-plan Roth conversion is only allowed for money that is considered distributable. Generally, that means the employee is 59½ or older; the money was contributed on an after-tax basis; or the money was rolled over from another 401(k) plan.

If you have questions about how this type of conversion works, an Ayco financial coach can help you at 1-866-217-8691.

To set up an in-plan Roth conversion, call the HR Service Center at 1-877-HR-AT-WORK (1-877-472-8967) from 8:30 a.m. to midnight ET.

Keep in mind, you will need to find other cash to pay taxes on any money you convert. Tax payments cannot be made from your account balance – consult with your tax advisor first.

SAVINGS ROTH 401(k)


INCREASE YOUR SAVING POWER

If you receive an annual bonus, it will be easier for you to manage how much of it is contributed to your 401(k)/Investment and Savings Plan (ISP) account in 2016. As of Jan. 1, you will be able to elect a separate contri-bution percentage4 for your bonus,5 which is typically paid in March.

In the past, your regular ongoing ISP contribution percentage applied to your bonus. This means the percentage you chose to have deducted for your ISP account each pay period was also deducted from your bonus check.

Starting in 2016, you can change how much you contribute from the bonus without changing your regular ongoing ISP contribution percentage. With a separate bonus election, you can contribute more and give your ISP account a boost. Or conversely, you can reduce the amount you are contributing.

What happens if you don’t set up a separate bonus contribution percentage?

If you don’t specify a separate contribution percentage for your annual bonus,5 the contribution percentage for your regular, ongoing ISP contribution will apply to your bonus amount. The contribution will also be made in the same way (before-tax, Roth or after-tax) and allocated to the same investment options.

Your regular, ongoing ISP contribution percentage will remain the same in 2016 (as it is in 2015), unless you change it or participate in the automatic increase program.

As with the regular ISP contribution, The Hartford will continue to match your separate bonus contribution percentage up to 6 percent of your eligible pay and contribute 2 percent of your eligible pay on a non-elective basis.

HOW TO SET UP A BONUS CONTRIBUTION PERCENTAGE

As of Jan. 1, employees who are eligible for an annual bonus can log on to NetBenefits and click on “Contribution Amount” in the Quick Links menu under ISP. In setting up your bonus5 contribution, keep the following points in mind:

You can choose to make traditional (before-tax), Roth and/or after-tax contributions from your bonus. Your investment fund options will follow those you’ve chosen for your regular, ongoing ISP contributions each paycheck.

Any changes, including a new bonus contribution percentage election, may take one to two pay periods to go into effect. As a result, be sure to elect your new bonus contribution election early (e.g., by the end of January) to ensure that the election applies to any eligible annual bonus you receive.

4 Separate contribution percentages are not available for traditional ISP catch-up and/or Roth catch-up contributions. More information about ISP contribution types is available in the Summary Plan Description on NetBenefits.5 If you participate in the automatic increase program (which increases your contribution to the ISP by 1% each year), the automatic increase will no longer apply to the annual bonus.

Note: Your ISP contributions are subject to IRS guidelines and limitations. Bonus contribution elections cannot be made retrospectively.

BOOST YOUR SAVINGS WITH YOUR BONUS.

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Gas money saved by employees:

$379,384Employee tax savings:

$76,331

Pounds of CO2:

260,346.68Number of cars off the road:

194

A budget is critical to the success of your financial plan. Yet many people either don’t have a budget or aren’t sticking with it.

For budgeting guidance, call an Ayco financial coach – at no cost to you – at 1-866-217-8691.

This article previously appeared in the September 2014 edition of Ayco’s Updates Newsletter.

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SAVE ON YOUR COMMUTING COSTS

If you work 20 or more hours per week, you can use before-tax dollars to pay for qualified parking and transportation costs through the Commuter Benefit Program. To enroll, log on to acclarisonline.com and click on Elect/Modify Commuter Benefits. A new window will open and you can place an order there.

Here’s what employees of The Hartford helped save this year, on average, with this program:6

LOOK FOR WAYS TO SAVE ON EVERYDAY COSTS.

Here are some of the most common reasons why budgeting sometimes fails and likely solutions:

REASON 1 — You don’t look at your budget regularly.

The fix: Revisit your budget every pay period, or more often if necessary, to compare planned expenses against actual ones. As you gain more experience with your budget, you may be able to revisit it less often.

REASON 2 — Your goals aren’t front and center. It takes motivation and willpower to stick to a budget and, without a good reason to cut spending or set limits, we generally won’t do it.

The fix: Setting smaller sub-goals might help. Also, write your goals down — and keep them where you can see them.

REASON 3 — Your budget is incomplete. One of the most common mistakes is to not include every expense in your budget.

The fix: Take a mental “walk” through your home and your day and list everything that costs money, even if only occasionally, such as insurance bills, oil changes, gifts, routine home maintenance or kids’ activities. You may end up with a long list of expenses, many of which are irregular. That’s OK; you’ll make a plan for those so they don’t throw you off track.

6 Estimates based on the average order amounts reported above, employer payroll tax savings at 8 percent and employee payroll tax savings of 30 percent. Savings are annualized estimates.

Common budgeting setbacks and solutions


http://www.acclarisonline.com

ACTION NEEDED: CHECK YOUR DEPENDENT INFORMATION

Starting this year, The Hartford is required to send a new tax form, called a Form 1095-C Employer-Provided Health Insurance Offer and Coverage, to employees. The form indicates if employer-sponsored health coverage was offered to you and your dependents for 2015, and specifies if you elected that coverage for yourself and/or dependents. Depending on your circumstances, you could be eligible for a health exchange subsidy or owe a penalty for not having health coverage.

You will receive the form by the end of January 2016 and you should keep it for your 2015 federal income tax filing.

Aycofn® is a trademark of The Ayco Company, L.P., a Goldman Sachs Company. This service is provided exclusively by The Ayco Company, L.P. Used with permission. The Ayco Company, L.P., (Ayco) is a subsidiary of The Goldman Sachs Group, Inc. and an affiliate of Goldman, Sachs & Co., a worldwide, full-service investment banking, broker-dealer and asset management organization.

ABOUT THIS ISSUE

This guide is not intended to create, nor will it be construed to form, a contract or promise for a benefit. Participation in the plans is subject to all applicable terms and conditions of the plans. Full details about the plans are provided in the official Plan Documents, which govern the operation of the plans. Any differences between this guide and the Plan Documents are not intended, but if any differences are found to exist, the Plan Documents will govern. The Hartford reserves the right, without your consent or concurrence, to amend, modify, suspend, replace or terminate the plans, in whole or in part, including any level or form of coverage or contribution amount, at any time.

15-1041 Benefits Resources © December 2015 The Hartford Financial Services Group, Inc. All rights reserved.

Review the Well-Being e-Book to see the many ways The Hartford can help you on your journey to a life well lived.

ACTION REQUIRED

It’s important to make sure the information that will be on the Form 1095-C is correct. Log on to NetBenefits by Dec. 24, 2015, to update or confirm the accuracy of the first/last name, date of birth and Social Security Number for your covered spouse/dependent(s).

After you log on, follow these steps:

1. Select “Profile” at the top of the page

2. Under “Related tasks” click on “Dependents for your Health Insurance”

3. Once you see dependents listed, click “Update” next to the dependent

4. To review or edit your dependents’ Social Security Number (SSN) click inside the SSN box so the complete number will display.

You can also update names online. However, to change date of birth or relationship status, you must call the HR Service Center at 1-877-HR-AT-WORK (1-877-472-8967).

USE YOUR FSA MONEY BEFORE YOU LOSE IT

A Flexible Spending Account (FSA) helps you save for your eligible health and dependent care expenses on a before-tax basis. But remember, if you don’t use the FSA money by Dec. 31, 2015 – and submit your claims by March 31, 2016 – you will forfeit it.

The Hartford offers two types of FSAs – a Health Care Spending Account (HCSA) and a Dependent Day Care Spending Account (DCSA). Here are some examples of eligible expenses for each:

1. HCSA – pay for expenses like deductibles, copays, eyeglasses, LASIK eye surgery, acupuncture and more.

2. DCSA – pay for dependent day care expenses – at an outside facility or in your home – for services such as elder care, or day care or summer day camp for children under age 13.

New FSA Bank Card on the Way

If you elected an HCSA for 2016, you will receive a new VISA® debit card from Bancorp by U.S. mail in mid-December. You must activate your card before you can use it.

You will receive more information with the card.

TAKE NOTE: IMPORTANT REMINDERS.


https://www.healthcare.gov/lower-costs/qualifying-for-lower-costs/

https://www.healthcare.gov/fees-exemptions/fee-for-not-being-covered/

https://www.healthcare.gov/fees-exemptions/fee-for-not-being-covered/

http://www.thehartford.com/sites/benefitsresource/files/1287794597094.pdf
