YWCA National 403(b) Plan
The YWCA National 403(b) Plan from Mutual of America allows employees of enrolled associations to supplement their retirement savings with both pre- and post-tax contributions.
New Administrators
I am taking over my association’s YWCARF administration. How do I get started?
Please contact our Association Services team for an overview of your new responsibilities and the forms and documentation you need. We’re happy to help!
Association Participation
How do YWCAs begin participation in YWCARF?
Associations may commence participation in YWCARF by submitting Participation Agreement, Election of Contribution Rate, and Association Profile forms, plus Notification of Enrollment forms for eligible employees. Upon processing these forms, YWCARF will send written confirmation of participation to the association.
How do YWCAs resume participation in YWCARF?
When associations wish to resume participation, they follow the original process. Submit Participation Agreement, Election of Contribution Rate, and Association Profile forms, plus Notification of Enrollment forms for eligible employees. Upon processing these forms, YWCARF will send written confirmation of participation to the association.
Association Responsibilities
What are participating YWCAs' core monthly responsibilities?
Every month, we ask all Fund administrators to report their association's employee compensation, optional employee contributions, and hours worked. Ensuring that this information is complete and correct significantly reduces processing time and avoids penalties, so please review the following before submitting your monthly paperwork to the Fund:
•Employee eligibility and enrollment of any new participants in the Fund.
•That association contributions are submitted by the 15th, and optional after-tax contributions even earlier.
•Participant changes in status or relevant personnel updates. Please update us!
How should administrators submit paperwork to the Fund?
Associations use a system called File Transfer to securely submit forms, invoices, and miscellaneous documents to the Fund.
New Fund administrators are granted access as part of the onboarding process. Alternatively, please contact our Association Services team.
Reporting Compensation
Which compensation types must be reported?
The following contribution types are subject to retirement contributions and must be reported to us:
•Gross compensation and wages
•Overtime pay
•Bonuses
•Vacation pay
•Differential wages 3401(h)(2) related to payment to employees in military service
•Sick leave pay
•Severance pay before termination of employment
•Salary deferral under IRC 125, 132(f)(4), 401(k), 403(b) and 457
•Off-cycle payroll (may include bonus pay, retro pay, commission etc.)
•Participants' final payroll
•Other taxable payments include, but are not limited to, stipend, allowance, COVID-19 pay and disaster relief pay
Contact your payroll provider if any of the above categories are missing from the payroll upload file.
Please note that this list may not be comprehensive. If you have any questions about compensation types not listed here, or need assistance with instructing your payroll provider, contact us.
Which compensation types are not reported?
The following compensation types are not subject to retirement contributions and must not be reported to us:
•Third party: disability pay, third-party sick pay etc.
•Severance pay after termination of employment
Employee Eligibility & Enrollment
When do YWCA employees become eligible to participate in the Fund?
YWCA employees become eligible for enrollment after working at least 1,000 hours a year for two years or 1,000 hours for one year, depending on their association's eligibility election. if the former, the two years do not need to be consecutive – prior YWCA work hours count toward eligibility if reemployment occurs within two years. Once eligible, employees are enrolled on the first of the month following the end of the qualifying year.
A former participant is immediately eligible for participation upon hire or rehire by a YWCA.
How do associations know which employees are eligible for enrollment?
Associations use a system called YETI to track employees' eligibility for enrollment, and to create monthly retirement contribution invoices for remittance to the Fund.
New Fund administrators are granted access as part of the onboarding process. Alternatively, please contact our Association Services team.
What is the enrollment process?
To enroll new employees, associations must submit a Notification of Enrollment form. Enrolling former participants requires a Return to Employment Notice.
In each case, the form must be submitted with a completed Designation of Beneficiary form, and a completed Authorization for Optional After-Tax Employee Contribution form when applicable.
What if I forget to enroll an eligible employee?
Submit the Notification of Enrollment (or Return to Employment Notice) and Designation of Beneficiary forms, plus a completed Authorization for Optional After-Tax Employee Contributions form if applicable. We will contact you about any missed contributions.
What happens after an employee is enrolled?
After enrollment, YWCARF will notify the new participants about their retirement account and ensure that they receive quarterly statements. The employee will also be added to their employing YWCA’s monthly contribution invoice.
What is the process when a formerly active participant returns to YWCA employment?
When a former participant is rehired, or returns from an unpaid leave of absence, you must report their return to active status by submitting a Return to Employment form.
Association Contributions
How are monthly contributions remitted?
Associations may remit contributions in one of several ways:
YETI with autopay: The association must create an invoice by the due date, after which YWCARF will issue an ACH debit on the due date.
YETI without autopay: The association must submit a signed invoice by the due date, after which YWCARF will issue an ACH debit.
Manually: For associations that do not use YETI, YWCARF delivers a retirement contribution form by File Transfer each month. Associations must submit this signed form by the due date, after which YWCARF will issue an ACH debit.
Contributions are due on the 15th of each month and are retroactive. For example, contributions for June are due July 15th.
How do participating associations elect their annual contribution rates?
Participating YWCA associations contribute to participants’ YWCARF accounts at one of four contribution levels: 3%, 5%, 7.5%, or 10%. Contribution rates are elected annually by October 31st and submitted to YWCARF with an Election of Contribution Rate form.
How do association contribution rates affect YWCA employees' retirement readiness?
Experts agree that a recommended retirement income target, also known as the replacement ratio, is between 70% and 85% of an employee's final year of pay.
Within the YWCA network, where two-thirds of employees make less than $50K annually, association contributions significantly impact the personal savings a long-term employee will require to supplement their YWCA Retirement Fund and Social Security incomes for a comfortable retirement. Find out more about the "three-legged stool" of retirement savings here.
Optional Employee Contributions
Who is eligible to make optional after-tax employee contributions?
Active participants at participating associations may choose to make optional after-tax contributions to their account through monthly payroll deductions. However, in accordance with the law, participants who are considered “highly compensated employees” may not make optional after-tax contributions.
A participant who made more than $150,000 in 2023 is deemed a highly compensated employee in 2024. The IRS adjusts this limit annually.
How do associations authorize optional after-tax employee contributions?
Participants may start, adjust, or stop optional after-tax employee contributions by submitting an Authorization for Optional After-Tax Employee Contributions form to their association or submitting these changes within the self-service portal. Your association's payroll department must submit the form, signed by the employee and association, to the Fund or accept online submissions within the association self-service portal.
How do I correct a contribution error?
If you missed remittance of a participant’s optional after-tax contribution, or must correct an error, please contact our Association Services team.
Can a participant make catch-up contributions?
Yes. Active participants can make catch-up contributions if they did not make the maximum employee contributions in prior plan years. Interested participants should contact our Association Services team to discuss the allowable catch-up amount.
When are optional after-tax contributions reported?
It is extremely important that any optional after-tax employee contributions are remitted as soon as possible, as late or missed transfer of these funds may trigger lost interest payable by your association, federal penalties owed by your association, and in repeat cases, audit by the IRS.
The Department Of Labor (DOL) requires that employee-withheld after-tax contributions be remitted to the Fund as soon as is feasible after separation from the employee’s paycheck. The 15th business day of the month (which remains the due date for association contributions), is an outer limit only: more than three business days after separation will be considered late.
Associations that are late to remit employee contributions three times in one calendar year will incur an automatic suspension from the employee-withheld after-tax contribution program.
Can employees make pre-tax contributions?
Employees of enrolled associations may make optional pre- and post-tax contributions through the YWCA National 403(b) Plan.
Reporting Employee Hours
Which employee hours must be reported?
Reports must include hours paid for:
•Duties
•Vacation time
•Holidays
•Sick days and incapacity (including disability)
•Layoff
•Jury duty
•Military duty
•Leave of absence
•Back pay
Do not report hours for pay increases, retro or current, if those hours have already been reported.
Employee Termination
What happens when a participant leaves YWCA employment?
When a participant has a change in status, such as leaving YWCA employment or taking an unpaid leave of absence that exceeds three months, you must notify us with a Change in Status Notice. We will then contact the participant to advise them about their account options.
Association Updates
When should YWCARF be notified of personnel changes at participating YWCA associations?
You may report updates to key positions such as Executive Director, CFO, CRO, Board President, or relevant updates to the Human Resources or Payroll departments by submitting an Association Profile form.
Forms
Where can I find the forms I need to update and manage my association's YWCARF accounts?
From participating in the plan and enrolling participants, to electing your association's contribution rate, find all the forms you need here.