Your Company's Retirement Plan
Follow the steps below to enroll in your company’s retirement plan with Azzad Asset Management. Please call us at 888-862-9923 with any questions. Congratulations on taking this important step toward securing your financial future!
Step 1: Confirm that your company has a participant-directed retirement plan. Not every plan is participant-directed. For example, if your company has a pension plan then you will not be able to have an individual plan account. Unsure? Ask your benefits manager or employer.
Step 2: Request and obtain your plan’s summary plan description document. This document will provide you with important information about your employer’s plan including how much (if anything) your company will contribute to your plan, who your third party administrator (TPA) is, and other useful information about your plan.
Step 3: To open your retirement account with our company, you will need to complete the following applications:
- Qualified Plan Custodial Agreement (required)
Please give this to your employer for completion. The account cannot be created without it.
- Individual Plan Participant Form (required)
Please complete as much as possible. The questions will assist us in analyzing your financial situation and risk tolerance so that we may make appropriate recommendations to you.
- Investment Advisory Agreement (ERISA) (required)
Please read, complete applicable fields, sign, and date. This agreement sets forth our terms and conditions.
- Beneficiary Form (optional)
Include the name(s) of the people you would like to receive your 401(k) assets in the event of your death. Married participants must designate their spouse. If they choose to change this to someone else, they must obtain their spouse’s signature and the document must be notarized.
- 401(k) Salary Deferral Form (required)
Please complete and sign the form. Be sure to indicate how much money you would like deducted from each paycheck to go into your 401(k) account. This form should go to the person who handles payroll at your work, not to Azzad.
Mail your completed forms to:
Azzad Asset Management, Inc.
Attn: Qualified Plan Financial Consultant
3141 Fairview Park Drive, Suite 460
Falls Church, VA 22042
Or email them to firstname.lastname@example.org
Please note: any missing paperwork or information will delay the processing of your account.
Step 4: My account has been set up. What are my investment choices?
If you haven’t done so already, make sure you complete the questions on the individual participant plan form. These questions are designed to assist your financial advisor in making appropriate investment recommendations for you. If you do not wish to answer the questions, you may choose an allocation or any of the below investment options. You may change your investment choices at any time by submitting this form to your financial advisor.
- Global Aggressive
- Global Moderate Aggressive
- Global Moderate
- Global Moderate Conservative
- Global Conservative
Individual Investment Options
Participants who have less than $25,000 in their accounts or who want to invest in individual model(s) rather than the above allocations may choose from the options below.
Investment choices available (minimum $50 investment per portfolio):
- Large Cap Growth
- Large Cap Value
- Mid Cap Growth (ADJEX)
- Small Cap Growth
- Small Cap Value
- Fixed Income (WISEX )
- REITs (real estate investment trusts)
Step 5: How can I obtain information about my account?
Once your account is established, you’ll receive an automated email from the plan’s broker and custodian, Folio Institutional, requesting that you set up your password. You will need your user name to do this. If you did not receive a username by email, call your financial advisor representative to request it.
To log in to your 401(k) account at Foliofn, go to www.folioclient.com. If you forgot your username or password, please call Azzad at 1-888-86-AZZAD (1-888-862-9923).
Frequently Asked Questions
Q: What is a third party administrator (TPA) and who is mine?
The TPA is the same party responsible for setting up the plan and its annual administration, which includes various testing and IRS filings. Check with your office manager for more information on who administers your plan.
Q: What role does Azzad play in my account?
Azzad is the investment manager and financial advisor to the plan.
Q: Who manages these investment portfolios?
Azzad hires third party managers to manage some of the investment models available to you. Azzad’s internal investment team also manages some of the portfolios. For more information, please refer to our ADV Part 2 and website (www.azzadfunds.com)
Q: How can I change my investment choices?
Complete the investment selection request form and fax it to Azzad to 703-852-7478.
Q: How can I increase, decrease, or stop my salary deferrals?
Please request and forward a completed salary deferral form from your manager/payroll person.
Q: How much does my employer match for me?
Information regarding company matches to your account can be found in your plan’s summary plan description document. Ask your manager for a copy.
Q: Can I borrow from my account?
Your plan may allow you to borrow from your account. Refer to your plan’s summary plan description for more information.
Q: How can I withdraw money from my account?
You may receive a distribution of the vested portion of some or all of your account for the following reasons: termination of employment, early retirement, normal retirement, disability, or death. Otherwise, you may not withdraw money from your account.
Q: I left my company. What do I do now?
Once you leave your company, your manager will notify Azzad as well as your TPA of your departure. We will be in touch with you once your distribution is ready for processing.
Q: Can I borrow from my 401(k) account?
Some, but not all, 401(k) plans permit loans. Ask your employer or benefits administrator to see if your plan allows for loans.
Q: How much can you borrow?
When loans are allowed, generally you can only borrow up to half of your vested account balance, up to a maximum of $50,000. This limit is set by the Internal Revenue Service and your plan may have a lower maximum.
Q: What is the interest rate for a loan from my 401(k) account?
The interest rate is stated in your employer’s plan documents. Typically, a 401(k) loan will carry an interest rate based on the prime rate plus 1 or 2 percentage points. Thus, a five-year 401(k) loan might have an APR of 5.25%.
When you pay back your loan, you are paying the principal plus interest to yourself (your retirement account). You aren’t paying the interest to a bank.
Q: How many years do I have to pay back the loan?
401(k) loans generally have a maximum payback period of five years. If the loan is to purchase a first-time home, the payback period may be longer.
Q: What if I don’t pay it back?
If you don’t make a payment for 90 days, that money may be considered a distribution and taxed as income. If you’re under your plan’s retirement age, there may be an additional 10% penalty. If you leave or are let go from your job, you must repay the entire loan within 60 days or incur the same financial penalties stated above.
Q: How do I pay back my 401(k) loan?
Your employer will deduct the loan amount from your paycheck. That way you not only receive a tax benefit from having less in taxes withheld from your paycheck, but you also ensure the loan is being paid back on time.
Q: What is a possible disadvantage of taking a loan from my 401(k)?
In addition to losing the opportunity of having the money you withdraw grow for your retirement, your loan payments are made with after-tax money that will be double taxed –once when you are making the loan payments, and a second time when you withdraw your retirement funds at retirement age. If you’re unable to pay back the loan (or lose your job before it’s paid) you may incur additional penalties and taxes. Therefore, taking a loan from your 401(k) should only be made as a last resort and after careful thought.
To request a loan from your 401(k) account, please contact your third party administrator (TPA). Your employer should have the TPA’s contact information or you should be able to find it in your summary plan description document provided to you when you became eligible for the plan.