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Essential Steps for Navient Employees: Planning for the Future of a Child with Disabilities

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Parents employed in Navient may relate to how raising a child is expensive and can cost a quarter of a million dollars, not including college. For a child with special needs, that cost can more than double.1 If you’re the parent of a special needs child, it’s vital to ensure your child will continue to be provided for after you’re gone. It can be difficult to contemplate, but with patience, love, and perseverance, a long-term strategy is attainable and can help bring some peace of mind.


Envisioning a Life Without You

Just as every child with special needs is unique, so too are the challenges facing their families when planning for the long term. As an employee of Navient, you must think about the potential needs of your child. Will they require daily custodial care? Ongoing medical treatments? Will your child live alone or in a group home? Can family members assume some of the care? Answers to these and other questions can help form the vision of what may need to be done to plan for your child’s care.

Planning Your Estate

Without proper planning, your child’s lifetime needs can quickly outstrip your funds. With that under consideration, those in Navient may want to consider government benefits, such as Supplemental Security Income (SSI) and Medicaid, which your child may qualify for depending on their situation. Because such government programs have low-asset thresholds for qualification, you may want to consider whether to make property transfers to your special needs child.

As an employee of Navient, you should also make sure you have an up-to-date will that reflects your wishes. Consider creating a special needs trust, the assets of which can be structured to fund your child’s care without disqualifying them from government assistance.2


Involve the Family

All affected family members should be involved in the decision-making process. If at all possible, it’s best to have a united front of surviving family members to care for your child after you’ve passed on.

Identify a Caregiver

In order for a caregiver to make financial and health care decisions after your child reaches adulthood, the caregiver must be appointed as a guardian. Those in Navient may want to consider how this can take time, so start setting this in motion as soon as you can amidst your busy work schedule.

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To do this, you can write a “Letter of Intent” to the caregiver and family to express your wishes along with information about your child’s care. Navient parents must acknowledge that although this isn’t a legal document, it may help to communicate your desires. Store this letter alongside your will, in a safe place.

Navient parents must understand that planning for a child with special needs can be complicated and overwhelming, but you don’t have to do it alone. Working with loved ones and qualified professionals can help you navigate the various facets of this challenge. If we can help, please don’t hesitate to reach out.

1. Policygenius, 2019
2. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.

What is the 401(k) plan offered by Navient?

Navient offers a 401(k) plan that allows employees to save for retirement through pre-tax contributions, providing a tax-advantaged way to build their savings.

Does Navient provide a company match for the 401(k) contributions?

Yes, Navient offers a company match for employee contributions to the 401(k) plan, enhancing the overall retirement savings for employees.

How can I enroll in Navient's 401(k) plan?

Employees can enroll in Navient's 401(k) plan through the company’s benefits portal during the enrollment period or after a qualifying life event.

What are the contribution limits for Navient's 401(k) plan?

The contribution limits for Navient's 401(k) plan are set according to IRS guidelines, which may change annually. Employees should check the current limits for the specific year.

Can I change my contribution percentage to Navient's 401(k) plan?

Yes, employees can change their contribution percentage to Navient's 401(k) plan at any time through the benefits portal.

What investment options are available in Navient's 401(k) plan?

Navient's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

When can I start withdrawing from my Navient 401(k) plan?

Employees can typically start withdrawing from their Navient 401(k) plan at age 59½, but specific rules may apply based on the plan's provisions.

Does Navient allow loans against the 401(k) plan?

Yes, Navient may allow employees to take loans against their 401(k) plan, subject to specific terms and conditions outlined in the plan documents.

What happens to my Navient 401(k) if I leave the company?

If you leave Navient, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave the funds in the plan if permitted.

Are there any fees associated with Navient's 401(k) plan?

Yes, there may be administrative and investment fees associated with Navient's 401(k) plan, which are disclosed in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Name of Pension Plan: Navient Pension Plan Details: The Navient Pension Plan provides a defined benefit pension to eligible employees. The plan offers a monthly benefit upon retirement based on years of service and salary history. Years of Service and Age Qualification: Employees are eligible for the pension plan after reaching 5 years of service. Normal retirement age is 65, but early retirement options may be available starting at age 55 with reduced benefits. Pension Formula: The formula for calculating benefits is based on a percentage of the employee's average salary over their highest earning years multiplied by the number of years of service. Pension Plan Terminology: Defined Benefit Plan: A pension plan where retirement benefits are predetermined based on salary and years of service. Normal Retirement Age: The age at which an employee can retire with full pension benefits. Early Retirement: Option to retire before normal retirement age with adjusted benefits. Name of 401(k) Plan: Navient 401(k) Plan Details: The Navient 401(k) Plan is a defined contribution plan where employees can make pre-tax contributions. The company may offer a matching contribution up to a certain percentage of the employee’s salary. Eligibility: Employees are eligible to participate in the 401(k) plan upon hire. There is no minimum service requirement to begin contributing.
In 2023, Navient announced a significant restructuring plan, including layoffs as part of its strategy to streamline operations and reduce costs. This move aligns with the company's shift towards focusing more on its core business areas and reducing overhead expenses. It is essential to address this news due to the current economic climate, which is marked by fluctuating market conditions and evolving investment strategies. The restructuring may impact employees' job security and future career prospects, making it crucial to stay informed about these changes.
Stock Options and RSUs Available: For Navient employees, stock options and RSUs are typically part of the company's compensation package, particularly for senior executives and key employees. Stock options (SO) and RSUs are designed to align employee interests with shareholder interests by providing potential financial rewards based on the company's stock performance.
Healthcare Benefits Overview: Navient provides a comprehensive benefits package that includes medical, dental, and vision insurance. They offer several plan options to suit different needs, including HMO, PPO, and high-deductible health plans (HDHPs). Acronyms and Terms: HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), HDHP (High-Deductible Health Plan), FSA (Flexible Spending Account), HSA (Health Savings Account).
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For more information you can reach the plan administrator for Navient at , ; or by calling them at .

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