Mon, Aug 28 12:52pm

Are you getting a 4% interest rate on savings?

By Robert McGriff, @m039153

interest-rates

Did you know Mayo offers a benefit plan that includes a guaranteed 4% interest rate on your money?

This is no secret benefit, yet many people don’t know the advantages to contributing to their Cash Accumulation Fund.

When you elect Voluntary Group Universal Life Insurance, Prudential automatically sets up a Cash Accumulation Fund in your name. If you do nothing, premium refunds from the Group Universal Life plan will be deposited into your fund annually and you can just let that money grow. However, you can elect to contribute 1-12 times your monthly life insurance premium to your fund and watch it grow even faster!

You can change your contribution amount and/or withdraw your money at any time and spend it on whatever you want. Unlike other benefit plans, there are no restrictions regarding when you can contribute, withdraw, or what you use the money for. What a great savings opportunity! Call the HR Connect Service Center (HRC) to begin contributions.

If you are already contributing, you can check your fund balance online through the Prudential website.

To learn more, check out the Summary Plan Description online.

Liked by TinaMae

Comment


jberg
@jennaberg

Posts: 1
Joined: Sep 15, 2017
Posted by @jennaberg, Fri, Sep 15 6:31pm

What is the minimum amount of money you need in this account to open it?


Robert McGriff
@m039153

Posts: 28
Joined: Oct 29, 2012
Posted by @m039153, Fri, Sep 15 10:58pm

The smallest contribution that you could make would be one times the amount of your voluntary life insurance premiums. You can find that amount on your bi-weekly statement of earnings in Employee Self Service or you can call the HR Connect Service Center at 1-888-266-0440. Thanks for commenting!


RNEE
@rnee

Posts: 1
Joined: Sep 17, 2017
Posted by @rnee, Sun, Sep 17 12:05pm

Does the person get taxed on the interest like savings account?


Robert McGriff
@m039153

Posts: 28
Joined: Oct 29, 2012
Posted by @m039153, Mon, Sep 18 9:27am

Yes, interest is taxable but the taxes are deferred until you make a withdrawal. When you make a withdrawal, Prudential will send a 1099 to report the interest income on your tax return.


DougRich
@dougrich

Posts: 1
Joined: Sep 20, 2017
Posted by @dougrich, 6 days ago

I have contributed to this since starting at Mayo in 2008 at the maximum rate. What a great little benefit. I have taken money of a few occasions but I am still surprised at how it grows. Truly an awesome benefit.


Krishna Dasari
@dasari

Posts: 1
Joined: Sep 22, 2017
Posted by @dasari, 4 days ago

This is a great benefit and has been using for last few years. I wonder can I contribute additional amount beyond 12 times the premium.


Robert McGriff
@m039153

Posts: 28
Joined: Oct 29, 2012
Posted by @m039153, 4 days ago

Thanks for that awesome feedback! Unfortunately, you can not contribute any more that 12X.

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