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GM RSP and PSP PlansIntroduction With over 30 investment options available, the Retired Savings Plan (RSP) for salaried employees and Personal Savings Plan (PSP) for hourly employees are among the best in the country. With this large number of funds, there is ample opportunity to build a well-diversified portfolio for your GM 401k savings. For your reference, we have provided a fund table displaying style, risk, and past performance for many of the funds in the RSP and PSP plans. In addition, please visit our “Fund Commentary” section below for further information on specific funds and/or fund types within the RSP and PSP accounts. To the right you will find articles of interest as well as news and updates to General Motors employee and retiree benefits. Check this page for future updates to the RSP and PSP plans, as well as news that affects General Motors employees and retirees. News and Updates GM Profit Sharing Payment –
February 1, 2012 It is important to keep in mind that the IRS limit for pre-tax contributions can not exceed $17,000 (or $22,500 if age 50 or older) for 2012. However, contributions can still be made to the PSP after reaching the $17,000 threshold. Your weekly contributions will automatically spill over as after-tax once the pre-tax limit is reached. There is a total contribution limit of $50,000 (or $55,500 if age 50 or older) for 2012. If you have questions on how much of the Profit Sharing payment you should contribute to the PSP relative to your personal situation or how the election of the Profit Sharing payment to the PSP could impact your contributions for the remainder of 2012, contact Mainstay Capital Management toll-free at 1-866-444-6246 to speak with one of our advisors. RSP & PSP Fund Change Announcement – January 2012 Mainstay Capital Management’s CEO, David Kudla, has spoken and is published on the subject of reducing fees (internal expense ratios) for investment options within 401(k) plans. To read his article penned for Forbes, "Why Investment Choices In Your 401(k) Might Change", visit Mainstay’s "In the News" page. If you would like more details or have questions about how this share class change could impact your portfolio, contact Mainstay Capital Management toll-free at 1‑866‑444‑6246. GM Separation Package – Phase II – October 2011 For those evaluating a buyout offer, there are important factors to consider:
Mainstay Capital Management is a fee-only, independent investment advisor that has counseled hundreds of GM employees on buyout offers. Mainstay currently provides portfolio management and retirement planning services to thousands of active and retired GM employees. We can provide a comprehensive Retirement Income Analysis, help evaluate "what-if" scenarios, and assist in making informed decisions concerning any buyout offer. Call Mainstay Capital Management toll-free 1‑866‑444‑6246 to discuss your personal situation with a Retirement Planning Specialist. RSP & PSP Fund Change Announcement – June 2011 GM Salary Enhanced Variable Pay (EVP) – January 2011 It is important to remember that any amount of the EVP payout that is elected to be deferred to the RSP will be combined with the pre-tax and Roth contributions that are deferred to the plan throughout the year. The limit on these contributions for 2011 is $16,500. Contact Mainstay Capital Management toll-free at 1‑866‑444‑6246 to speak with one of our Certified Financial PlannersTM to discuss how deferring a portion of your potential EVP payout would impact your personal situation. GM Salary 401(k) Plan Name Change – January 2011 GM Separation Package – December 2010 New Options Available in Roth 401(k) Account – November 2010 GM Reinstates Matching for RSP Participants - October 2009 GM’s Health Plans in 2010 will be HSA Qualified – October 2009 RSP Roth and PSP Roth We applaud GM for taking advantage of this provision in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). For any questions on this development in the GM 401(k) plan, feel free to call Mainstay Capital Management toll-free at 1‑866‑444‑6246 or send email to Mainstay@mainstaycapital.com. Request a free copy of Mainstay Capital Management’s “GM and Delphi Roth 401(k) Investment Guide” Roth 401(k)s - Frequently Asked Questions Mainstay "In The News" On The GM and Delphi Roth 401(k) Fund Commentary Pyramis Active Lifecycle Funds Eleven of these funds are included in the new plan, with 5-year incremental targets from 2000 to 2050. The further away the target date, the more aggressive the asset allocation. Conversely, the closer the date, the greater the emphasis on preservation of capital in the asset allocation. Lifecycle funds hold some appeal in that they are simple to explain and administer. While this approach is unique, we believe the asset allocation decisions provided by these funds are crude at best. Lifecycle funds attempt to make decisions about asset allocation based solely on a target date. An investor’s tolerance for risk and financial goals are other key factors that should largely play a roll in determining investment strategy and asset allocation. Additionally, they leave no room for the fund manager to tactically adjust the strategy based on specific opportunities within the financial markets or in response to prevailing market conditions. The returns realized in these commingled vehicles are diluted by a rigid adherence to mechanical allocation parameters. These parameters may prove to be shortsighted and inappropriate for everyone participating in the pool. The real world changes every day, yet proponents of lifecycle funds expect someone to stick to a single game plan for as much as 40 years, whether interest rates are rising or falling, or whether the economy is in expansion or recession. While lifecycle funds offer a simple one-stop-solution, we continue to advise participants to avoid lifecycle funds and retain the flexibility to proactively adjust their portfolios as needed. A Note on Institutional Funds Fund Table - December 31, 2011 The General Motors RSP and PSP fund table provides critical data on investment options within the plan. If you have any questions concerning our website or your GM 401(k)
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