with the Northgate Gonzalez Markets, Inc. 401(k) plan.

with the Northgate Gonzalez Markets, Inc. 401(k) plan.
W
hether your retirement is 40 years
away or on the horizon, it is
important to take stock of your situation
and take charge.
2
Industry professionals estimate that some
Americans will spend nearly one third
of their lives in retirement. Fortunately,
the Northgate Gonzalez Markets, Inc.
401(k) Plan offers tools, education and
investment options to help you prepare
for retirement.
Enrollment overview
Give back to your retirement
Reaching your retirement goals can take a lot of preparation. As a general rule, you’ll need
at least 75 to 80 percent of your final working salary to maintain your lifestyle during
retirement. The Northgate Gonzalez Markets, Inc. 401(k) Plan is a way to start preparing for
your retirement. Your plan offers you tools, education and investment options that can help
prepare you for your future.
How much should I contribute towards retirement?
Creating your investment strategy
What do you see yourself doing when you retire? Maybe
you’re looking forward to spending more time with your
family and sharing your hobbies with others. Or maybe
you hope to travel the world! No matter how big or small
your retirement goals may be, it takes preparation to
achieve them. Fortunately, the Northgate Gonzalez
Markets, Inc. 401(k) Plan offers a retirement plan to help
you reach your objectives and goals.
The amount of investment risk you are willing to
take is a very important decision. Remember, all
investments possess some element of risk, including
possible loss of principal.
For the vast majority of Americans, Social Security
benefits will not provide enough income to cover
expenses and make retirement comfortable. When
you’re deciding how much to contribute towards your
retirement, a good place to start is deciding how you’ll
use your retirement account. Will your retirement
account be your primary source of income or fun
money to supplement your lifestyle? The answer will
have an impact on how much you decide to contribute
towards retirement.
Risk is the potential for an investment to lose value.
Return is the change in value on an investment.
Understanding the relationship between risk
and return is very important as you develop your
investment strategy:
• Increased risk offers the potential for a greater return
over time, but there is also a greater potential for loss.
• Lower risk offers the potential for a lower return
over time, but there is also less potential for loss.
Risk versus Return
Large-cap stock
Balanced
Bonds
To find out more about your estimated
future Social Security Benefits, visit the
Social Security Administration website
at www.ssa.gov or call 1-800-772-1213.
Money
market
Mid-cap stock
Small-cap stock
International/
Global stock
Specialty
stock
Fixed
interest
Lower risk:
Lower potential return
Less potential for loss
Higher risk:
Higher potential return
Greater potential for loss
In the investment world, risk refers to the elements that determine
whether an investment’s value or return will be lower or higher
than expected. Generally, the greater the risk, the greater the
potential return. The risk/return meter above shows the relative risk
and return characteristics of different investment types.
3
Diversification and asset allocation
Tax-deferred versus taxable
As an investor, it’s important to find balance. You want
stability, but you also want growth potential. You’re
willing to take on some investment risk, but only up
to a certain point. Diversification is a technique that
seeks to stabilize risk by allocating investments among
various financial instruments, industries and other
categories.
With a qualified plan, you invest pre-tax dollars into
a tax-deferred account. Money is deducted from your
paycheck before taxes are imposed via withholding,
so you pay no income tax on the initial investment.
If your account experiences growth, that growth is
also tax deferred, so there is no tax on any gains in the
account. Ultimately, when money is withdrawn, it is all
taxed as ordinary income. With a taxable investment,
you will pay normal income taxes on money you
receive. When you invest money, any growth you have
is taxed and you need to pay the tax in the same year
as the gain, if it is realized. Unrealized gains are not
taxed currently and are only taxed when a sale occurs.
Dividends and capital gain are taxed at 15 percent or
less, for some wage earners, but the tax will apply even
if you opt to reinvest dividends and capital gains.
Asset allocation is an investment technique that
aims to balance risk and reward by allocating assets
according to your goals, risk tolerance and the amount
of time you have until retirement. There is no simple
formula that can find the right asset allocation for you,
as this will depend largely on your personal situation.
The use of diversification and asset allocation as part
of an overall investment strategy does not assure a
profit or protect against loss in a declining market.
Contribute now,
pay taxes later
The money you contribute to an employer-sponsored
retirement plan is taken directly off the top of
your paycheck — before income tax and any other
automatic weekly withdrawals. The portion deducted
goes directly into your retirement account, which
reduces your current taxable income and makes your
current income tax burden less. As a result, you’ll pay
less in your current income taxes for the year, because
in the eyes of the IRS, you’ve been paid less money.
Amounts withdrawn from qualified retirement
accounts are taxable when distributed. Ideally,
distributions will occur at retirement, when you could
be in a lower income tax bracket. So, you are not
paying taxes on the money you invest today and you
could pay taxes at a lower rate when you finally do
“take home” your money.
Note: Withdrawals prior to age 59½ may be subject to a
10 percent IRS penalty.
The example below compares a monthly contribution
of $250 into a tax-deferred retirement account that is
earning an 8 percent annual percentage rate to the
same monthly contribution and earnings rate in a
taxable investment with a 25 percent tax rate.
Contributing to a taxable investment would require
taxes on the $250 contribution, netting only $187.50
for contributions each month. In 10 years, the taxable
investment would have grown to $32,281 while the
tax-deferred retirement account would be at $34,539,
net after taxes — a difference of $2,258.
Over a period of 30 years, the difference is even more
dramatic. Here the taxable investment grows to just
$221,183 while the tax-deferred investment grows to
$281,535, net after taxes. The difference is $60,352!
Investment growth comparison
$32,281
10 years
$34,539
$95,881
20 years
(at 25% tax rate)
Tax-deferred investment
(25% tax applied at end of period)
$111,233
$221,183
30 years
$281,535
0
4
Taxable investment
i.e. savings account
$100,000
$200,000
$300,000
Enrollment overview
All numeric examples are hypothetical. These
hypothetical investment returns are for educational
purposes only and are not indicative of any particular
investment or performance. Hypothetical returns
assume reinvestment of earnings. Actual returns or
principal value will vary. An investor should consider
his or her current and anticipated investment horizon
and income tax bracket when making an investment
decision, as the example may not reflect those factors.
Investing involves risk, including the potential loss
of principal. Your actual results may vary. Tax laws
are complex and subject to change. Neither AUL,
OneAmerica Securities, Inc. nor their representatives
provide tax or legal advice.
discontinue contributions, you may only start again as
provided under the terms of the plan.
Plan highlights
You may change the contribution and investment
elections or elect not to participate by going online or
calling 1-800-249-6269.
Eligibility requirements
Employee and employer contributions
Participation in the plan is open to employees who
meet the following requirement(s):
• Attainment of age 18
• Completion of 6 month(s) of service
Plan entry dates
Employee and employer contributions
Participants may participate in the plan effective on
the first day of the month, following completion of the
plan eligibility requirements.
Excluded employees
Employee and employer contributions
The plan does not allow for participation by employees
who are Union employees
Contributions
Employee contributions
Generally you can contribute up to 100% of your wages,
salary, earnings (and bonus, if applicable), up to the IRS
allowable limits. Visit www.irs.gov for information on
the IRS limits for the current calendar year.
You can designate your contribution as a pre-tax
deferral, a Roth deferral or a combination of both.
Roth deferrals are after-tax contributions, but earnings
on these contributions accumulate tax-free in your
account and withdrawals at retirement may be exempt
from federal income tax.
You may increase or decrease the amount of your
contributions each payroll period. Once you
Automatic enrollment
To help you contribute toward retirement, your plan has
an automatic enrollment feature. Automatic enrollment
allows you to take no action in regard to participating in
the 401(k) plan once you attain eligibility requirements.
If you are a newly eligible employee, 2% of your
compensation will be deducted from your paycheck
and invested in the following default investment
option: American Century One Choice Target Date
Portfolio in accordance with your age. In addition, your
contribution will increase by 1% annually, up to a total
deferral rate of 4%.
Employer matching contributions
Your plan provides for an employer matching
contribution equal to 50% of your elective contribution
up to 4% of your eligible compensation.
Employer profit sharing contributions
Your plan allows for an employer profit sharing
contribution as defined by the plan.
Vesting
Employee contributions
You are always 100% vested in your deferral
contributions to the plan, plus any earnings they
generate.
Employer matching and profit sharing contributions
Contributions made to the plan on your behalf,
plus any earnings they generate, are subject to the
following vesting schedule:
• Less than 2 years of service: 0%
• 2 years of service: 20%
• 3 years of service: 40%
• 4 years of service: 60%
• 5 years of service: 80%
• 6 or more years of service: 100%
Rollovers and transfers
Your plan allows for the rollover or transfer of an
existing qualified retirement plan account from a prior
employer.
You are always 100% vested in any rollovers or
transfers to the plan, plus any earnings they generate.
5
Withdrawals/Distributions
Generally, money may be withdrawn from your
account for:
• Attainment of age 59½
• Death
• Disability
• Financial hardship
—— In this case, any distribution would be further
limited to the total amount contributed and
contributions must be suspended for six months
after receipt of a distribution of hardship
• Note: Roth after-tax contributions may not
be withdrawn for a financial hardship
• Note: In-service withdrawals of Roth aftertax contributions are not permitted
• Loans
• Retirement at the plan’s normal retirement age
• Termination of employment
Section 404(c) Notice
The plan is intended to be an ERISA Section 404(c)
plan. This means that you “exercise control” over the
investments in your plan account. You will choose
which investments to put your money in now and you
can choose different investment options as your needs
change. This allows you to invest in the way that best
meets your personal goals. Your investment elections
remain in force until changed. Your employer and the
fiduciaries of the plan may be relieved of liability for
any losses that your account may experience as a result
of investment choices made by you or your beneficiary.
If you do not make any investment option elections,
your contributions will be credited to the default
investment option identified in the contract. Once
you provide investment option elections, new
contributions will be allocated according to those
elections. Monies defaulted to the default investment
option will remain invested in that option until you
transfer such amounts to another investment option.
All or a part of your account value may be transferred
between the available variable investment options
at any time during the Accumulation Period, but no
more frequently than once per day. However, AUL
reserves the right to reject any transfer request which
it reasonably determines to be made in connection
with abusive trading practices, such as market timing
or excessive trading by an investor or by accounts of
investors under common control.
6
The following transfer restriction will apply to monies
in the Fixed Interest Account (FIA), including monies
defaulted to the FIA:
• 90-day FIA Transfer Restriction
One hundred percent (100%) may be transferred from
the FIA at any time. However, once a transfer has been
made from your FIA, transfers back into the FIA are
allowed only after 90 days have elapsed since your last
transfer from the FIA.
As a plan participant, you may request certain
information from Lorena Eulloqui, Northgate
Gonzalez Markets, Inc., at 714-687-7090 or 1201
Magnolia Avenue , Anaheim, CA 92818. This
information includes: annual operating expenses
that reduce rate of return for each plan investment;
financial statements, reports, or other materials
relating to plan investments provided to the plan;
a list of assets contained in each plan investment
portfolio; the value of those assets and fund units or
shares; the past and current performance of each plan
investment; and information on the value of shares or
units in your own account.
Section 404(c)(5) Notice
The plan is intended to be an ERISA Section 404(c)
(5)–compliant plan. This means that if you do not make
any investment option elections, your contributions will
be credited to the default investment option identified
in the contract (which is intended to be a “Qualified
Default Investment Alternative,” or “QDIA”).
Once you provide investment option elections, new
contributions will be allocated according to those
elections. Monies defaulted to the default investment
option will remain invested in that option until you
transfer such amounts to another investment option.
Additional plan specific provisions or limitations
may apply. Please refer to your summary plan
description (SPD) or contact your plan administrator
for assistance.
You can enroll in the plan, select your investment
options or manage your account (which includes
the initiation of transfers and/or the changing of
your investment elections) through OneAmerica
TeleServe® (1-800-249-6269), or by registering
for and then logging into your secure account at
www.northgate401k.com. You may also contact a
participant services representative at 1-800-249-6269.
Enrollment overview
Getting started
Whether you prefer the internet or telephone, there’s
an easy-to-use enrollment tool available to you 24
hours a day, seven days a week.
Preparation
• Have your plan number available
• Decide how much you want to contribute per paycheck
• Decide how you want to invest your contributions
Enrollment – www.northgate401k.com
1.Have your plan number available: G36671.
2.Go to www.northgate401k.com.
3.Click on “Enroll or View Account.”
4.Complete the step-by-step registration process, which
includes:
—— Creation of User ID and Password
—— Creation of password recovery information
OneAmerica TeleServe – 1-800-249-6269
OneAmerica TeleServe® is an interactive voice
response (IVR) system that provides a direct link to
your retirement account information.
Registration and enrollment
1.Call 1-800-249-6269.
2.Enter your Social Security Number.
3.Re-enter the last four digits of your Social Security Number.
4.Enter the numeric portion of your plan number: G36671.
5.Enter your Birth Date (mm/dd/yyyy).
6.Choose and enter a Password.
7.Answer the questions about whether you want to make a
deferral and the amount you want to defer.
8.Enter your investment option elections (Option 2 for the main
menu).
9.Indicate whether you have other retirement accounts that you
wish to roll over to your AUL retirement plan.
Selecting your investments
Once you are enrolled in the plan, you will need
to select your investment options from the list of
options available to your plan. AUL Retirement
Services provides you with resources and information
necessary to select investment options to meet your
specific needs.
The performance report, available on the Account
Services website, provides you with a snapshot of how
an investment option has performed historically over
various reporting periods. Past performance is not a
guarantee of future results. In addition, the Investment
Option Summary pages offer information on risk,
return, expenses, holdings and other data points you
can use to profile specific investment options.
Note
Tax qualified retirement plans from American United
Life Insurance Company® (AUL) are funded by an
AUL group annuity contract. While a participant
in an annuity contract may benefit from additional
investment and annuity related benefits under the
annuity contract, any tax deferral is provided by the
plan and not the annuity contract.
Non-registered group variable annuity contracts are
issued by American United Life Insurance Company®
(AUL), One American Square, Indianapolis, IN 462060368, 1-800-249-6269.
A variable annuity contract is a long-term, tax-deferred
investment designed for retirement that will fluctuate
in value.
Any investment involves risk and there is no assurance
that the investment objective of any investment option
will be achieved. Before investing, understand that
variable annuities are subject to market risk, including
possible loss of principal.
Please note: The above steps may vary as a result of
provisions specific to your plan.
7
Your future. Our goal.®
About AUL Retirement Services
About OneAmerica
American United Life Insurance Company® (AUL) is
the founding member of OneAmerica® and offers a wide
range of products and services for retirement plans of
individuals and employers. As a leader in the retirement
services industry, AUL provides local service through a
national network of experienced professionals focusing
on the 401(k), 403(b) and 457 markets.
OneAmerica Financial Partners, Inc., headquartered
in Indianapolis, Ind., has companies that can trace
their solid foundations back more than 135 years in the
financial services marketplace.
About AUL
American United Life Insurance Company® (AUL)
is the founding member of OneAmerica® and is
focused on providing a strong portfolio of products
for individuals, families and businesses. AUL
provides local service through a national network
of experienced professionals utilizing an extensive
menu of financial products, including retirement plan
products and services, life insurance, annuities and
employee benefit plan products. The company helps
consumers prepare for tomorrow by helping to protect
their financial futures.
American United Life Insurance Company®
a OneAmerica® company
One American Square, P.O. Box 368
Indianapolis, IN 46206-0368
1-800-249-6269
www.oneamerica.com
OneAmerica’s nationwide network of companies
offers a variety of products to serve the financial
needs of their policyholders and other customers.
These products include retirement plan products
and services; individual life insurance, annuities,
long-term care solutions and employee benefit
plan products. The goal of OneAmerica is to blend
the strengths of each company to achieve greater
collective results.
The products of the OneAmerica companies are
distributed through a nationwide network of
employees, agents, brokers and other distribution
sources that are committed to increasing value to our
policyholders by helping them prepare to meet their
financial goals.
© 2014 OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica® and the
OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc.
R-24271 02/05/14