Business Connection • May 2023

business CONNECTION

Terry Christensen PUBLISHER tchristensen@messengernews.net

Bill Shea EDITOR bshea@messengernews.net

Leanne Darr MARKETING DIRECTOR ldarr@messengernews.net

Jody Kayser SALES MANAGER jkayser@messengernews.net

Nick Manwarren GRAPHIC DESIGNER nmanwarren@messengernews.net

Brittney Bensen SALES CONSULTANT bbensen@messengernews.net

ADDRESS: PHONE: 713 Central Ave. (515) 573-2141 Fort Dodge, IA 50501 FAX: (515) 571-4529

Fort Dodge BUSINESS CONNECTION is published monthly by The Messenger in cooperation with The Greater Fort Dodge Growth Alliance.

All rights reserved. Copyright 2023. Reproduction in part or in whole without the expressed written permission of Fort Dodge BUSINESS CONNECTION is strictly prohibited. Unsolicited manuscripts must be accompanied by return postage. Fort Dodge BUSINESS CONNECTION is not responsible for unsolicited photographs, artwork or manuscripts. The opinions expressed in editorial material are not necessarily the opinions of Fort Dodge Business Connection.

ECONOMIC DEVELOPMENT, QUALITY OF LIFE, AND WORKFORCE

Communities with a higher quality of life experience both higher employment and population growth. Our region’s elected officials and leaders understand this and have invested in improving the qualityof-life initiatives, such as trails, arts and culture, and other amenities. Understanding that a vibrant business climate also impacts quality of life is in our wheelhouse at the Greater Fort Dodge Growth Alliance. Having a solid business climate attracts customers, employs residents, and gives consumers more choice for buying everything from groceries to furniture, to automobiles, to a myriad of ancillary opportunities.

Reliable infrastructure is also a part of maintaining a good quality of life. Infrastructure covers everything from the physical assets like roads and bridges, to basic municipal needs like water, electricity, gas, and broadband. It also includes services like healthcare, childcare, educational opportunities, and further amenities that support the necessary workforce, which is also human infrastructure. Economic growth doesn’t happen without serious investments in infrastructure. Without infrastructure support there are no new neighborhoods, shopping areas, office parks, or other quality of life support. City and County leaders have understood the importance of, and the complexities, and have continued to make improvements when needed, and have invested and are continuing to invest when needed to support development for the area.

Giving people choices is important to a healthy quality of life. All of the factors mentioned are necessary, however job fulfillment comes not just from new employees moving to Webster County, but from infilling those jobs from our existing residents. One of the greatest allies of economic development is the education opportunities available. Iowa Central Community College is also a part of our support infrastructure that is

Dennis Plautz

invaluable when it comes to offering options for adult learning, workforce education, and skills development. The more well-rounded and capable a local workforce is, the more attractive that location is to companies dependent on a trained and available workforce for their viability and success.

access plays when people are looking at relocating, and to offer the citizens of Fort Dodge more choices. With these changes, we also further the need for educational opportunity. Iowa Central again provides those education opportunities and support to our population and future population.

What actually is considered “quality of life” is constantly changing. Decades ago, the internet and access to it would not have been a part of the conversation, and now the City of Fort Dodge is preparing to offer broadband as a new utility, understanding the importance

Economic development and quality of life initiatives only happen when collaboration occurs between stakeholders. Fort Dodge, Webster County, and we all understand that when one wins, we all win.

WITH

Q&A JOSH PORTER

PLEASE TELL OUR READERS ABOUT YOURSELF.

My family and I moved to Fort Dodge in the summer of 2021. I’m a 1999 graduate of Fort Dodge School and grew up in the town of Otho. My wife Sandy is a high school health & physical education teacher and we have three kids Karson (12), Knox (10), & Kruz (6). After High School, I attended Iowa Central Community College and received my AA degree. I then went to Central College in Pella where I received my bachelor’s degree in Exercise Science. I received my Master’s in 2010 from Grand Canyon University in Educational Leadership and my Education Specialist Degree for School Superintendents from Drake University in 2023.

My wife and I met in Clarinda, Iowa where we both were educators for over 14 years. I have been everything from a teacher, middle school principal, transportation director, high school principal & activities director during that time. We have a very busy family that is very involved and spend a lot of time at events for both our children and the Fort Dodge Schools.

Q&A

WITH JOSH PORTER

WHAT ARE YOU LOOKING FORWARD TO AS YOU STEP INTO THE ROLE OF SUPERINTENDENT?

I think the part I’m looking forward to the most right now is being able to share my vision and passion for education with all areas of the school district. The ability to work with students at every level and educators at those levels gets me excited about the work. We have some of the best teachers & administrators and this opportunity will allow me to spend time with them and have a lasting impact on Fort Dodge Community Schools. We are such large & complex organizations that I’m excited to learn and work with all the moving parts to provide the best opportunities for our students and staff.

WHAT INSPIRES YOU AS A LEADER EVERY DAY? DO YOU HAVE A PHILOSOPHY OR MOTTO THAT YOU LIVE BY?

I’m inspired by the kids. There is so much we can learn from them and a lot that they can learn from us. We have students and families that need us to give our best every day and knowing that the work we are doing is so important gives you an extra little motivation each day you come to work.

I have used a motto in my email for almost 8 years now and I try to live by this motto every day that I get to interact with children, families, and staff.

“Children do not care how much you know until they know how much you care”

- Teddy Roosevel

Eric Anderson

and in turn later receiving the biggest drawing than anyone else in the grade back from him. I found out that he was tired of drawing the figures by the time I asked him that he thought that if I had to draw it I would give up and he would not have to do it no more, but when he saw that I had tried he was impressed leading to the drawing that he created for me. I still have that drawing today.

What has your educational path been?

My educational path has always been focused on art and creative design. I started out at Iowa Lakes Community College in Estherville. I graduated with a AA / AS in Graphic / Advertising and General Art Transfer. I had worked at the local newspaper for a summer and found that I did not like that type of Graphic Design work, so I went on to Minnesota State University – Mankato and studied Studio Art. I majored in Painting and printmaking. During my time at Mankato, I enjoyed art history courses and also working at the art gallery on campus. I earned my BFA and MA in studio art from MSU. After MSU I applied and was accepted to attend the MFA program at the University of Nebraska – Lincoln studying Studio Arts and Art History.

What do you most enjoy about creating artwork?

Did you grow up in an artistic household? How did you first become interested in creating art?

I would say that I grew up in a somewhat artistic household, I know that my mom worked for the public school, and she would create items for teachers’ classrooms. My dad is a singer and would participate in church and area performance groups and musicals. There are artistic people on both sides of my family, my mother’s brother is an exceptional drawer and my dad has a cousin that creates amazing objects out of wood. I think I had an interest in creating art, drawing, and coloring as far back as I can remember. I do recall that one of my favorite subjects in early elementary was tornados after seeing one from a distance from my house. But my favorite memory would be when I asked my elementary art teacher if he could draw my California Raisin figure like he did for others and he stated that if I wanted one by him that he wanted one from me first. I remember sitting at the kitchen table and concentrating on drawing this 3-dimensional object onto a flat sheet of paper. Then taking that drawing into the art teacher and giving it to him

There are many things I enjoy or find interesting in relation to creating art, one is the ability to create something new, the act of taking something from my head and bringing it into existence. I enjoy the problem-solving aspects of creating art –being able to take simple materials and create an illusion of reality, transformation of materials, and or the dialogue of understanding. I find the whole process fascinating.

How has your work changed over the years?

I would say that the visual nature of my work has changed because I have changed. My understanding of things and how I experience the world gets reflected in my art. The work also changes as I find new materials to incorporate into the work. I would say that I have always tried to stay true to a core idea – a contradiction - “Simple Complexity.” So, the visual nature of the work has changed but not the core idea.

Age: 45 • Hometown: Estherville Iowa • Profession: Art Museum Director / Artist

Why is it important for children to be exposed to artwork?

It is important for children to be exposed to artwork because it presents them with a world of color, expression, and imagination. This exposer stimulates innovative thinking and creative problem-solving. Art allows children’s minds to think outside of the box and develop their own personal thoughts. Art allows children to use emotional expression as an outlet and presents them with an alternative way to communicate if words are not enough. Art has a great impact on children, it introduces them to world cultures, shows them diversity in the world, expands understandings.

What do you most like about the art and culture scene in Fort Dodge?

The Fort Dodge Art and Cultural scene is thriving and growing. I like the diversity of opportunities available, the organic growth of events and activities, and the richness of artistic development happening.

Who, or what, inspires you? And why?

I am always inspired by individuals that have the courage to be a full-time artist living and working for creative spirit. I find inspiration from my kids seeing their love and enthusiasm for creating is amazing. I love seeing new works of art that challenge my understanding, I also enjoy meeting new artists and seeing what they are working on.

What is the most challenging part of being an artist?

I think the most challenging part of being an artist is finding time to work and be by oneself but also connecting when needed to a larger community of creative people.

WHITE TRANSFER & STORAGE

Warehousing is a component of economic development. Having warehousing and logistics support is an important element to many companies’ ability to expand and or be attracted to locating their business in our area.

White Transfer and Storage’s core business is partnering with manufacturers to assist with their storage and logistics needs. Altogether, White Transfer and Storage owns and operates 850,000 square feet of commercial warehouse space. White Transfer has five business locations, including Webster City, Forest City, Clarion and Algona. White Transfer has approximately 45 employees that keep the operation moving. The company moves 2,000 to 3,000 pallets across their docks and loads or unloads over 100 trucks per

day. White Transfer stores a variety of goods for customers from tool boxes, to cans, to drywall, to additives for animal feed.

From a service standpoint, White Transfer strives to be a true partner in our customers’ operations. We pride ourselves on anticipating what our people need and being creative to meet those needs. White Transfer and Storage has recently implemented new technology for scanning and accounting for goods that flow through their warehouses.

With over 100 years of experience and 3 generations of families, White Transfer has deep roots in the region. White Transfer and Storage looks forward to serving its customers for generations to come.

GREATER FORT DODGE GROWTH ALLIANCE BOARD MEMBER SPOTLIGHT

tRIBBON

The Face Place provides Day Spa services specializing in skin care (facials, Procell Micrchanneling, etc), massage therapy, hair removal, lash extensions, Beettan spray tan, body treatments (contour body wrap, exfoliation, IonCleanse), and natural nail care manicure and pedicure services.

They are located at 1502 6th Ave North in Fort Dodge.

City Connect FORT DODGE

Fort Dodge Fiber

Fort Dodge Fiber is ready for a very busy construction season ahead. The process of bringing community-built reliable broadband internet service to Fort Dodge has been years in the making, and this spring Fort Dodge Fiber is making that dream come true for Fort Dodge residents and business owners.

The first fiber drops in the ‘Green Zone’ are anticipated to be installed in mid-May.

“We are so excited to be moving forward this spring,” said Nick Ekel, Fort Dodge Fiber Customer Experience Manager. “We’ve anxiously waited through the winter season knowing that as soon as the ground thawed that we’d be able to begin construction in the Green Zone and connect our first customers.”

More than 4,700 properties have been registered with Fort Dodge Fiber and site surveys are underway with Iowa-based partner Patriot Communications. These site surveys for homeowners and businesses help construction crews know where the fiber should be brought up to the building.

“Patriot Communications has worked with New Hampton and Vinton municipal broadband utilities, and we are excited to have them here in Fort Dodge,” said Ekel. “They have trained technicians who have begun contacting residents to schedule a site survey. These technicians will come to your business or home and meet with the property owner both inside and outside of the building.”

During the site survey, photos will be taken of the property to communicate with the team as to the best route to place the fiber line. At that time, the crew will also place a gray utility box on the side of your building or home.

Fort Dodge Residents will notice different colored flags in their yards. It is important to know that these flags communicate where the underground utilities are so that we know of a clear path to place the fiber underground. Please do not move these flags.

Fort Dodge Fiber’s contractor, MP Nexlevel, will then lay the fiber to the right of way of your street. Another Fort Dodge Fiber contractor, TekLink, will be responsible for installing the fiber drops. TekLink will utilize a vibration plow which will bring the fiber up to the gray utility box from the right-of-way at a depth of 12-18” underground.

“It is important to know that there will be a waiting period between your fiber drop being installed and when you will receive Fort Dodge Fiber services. Our timeline is dependent upon weather, construction, and the availability of our installation technicians.” said Ekel.

If your property is in the ‘Green Zone’ you will be the first to receive Fort Dodge Fiber services. If you are in the ‘Green Zone’ and have not completed your site survey, please call Fort Dodge Fiber directly at 515-515-5000.

If you have not registered your property for Fort Dodge Fiber, a fiber optic service line will not be installed during the construction phase. If you choose to have a line installed after the construction phase has ended, you may be required to pay for service line installation or wait until installation crews are available.

Fiber internet is coming to Fort Dodge. Take the first step and register for service. When your zone is ready to begin service, we’ll contact you to sign up and get started!

*Service start dates are subject to change due to possible delays such as weather. Cabinet boundaries and their applicable addresses are subject to change during the design process. These changes are made based on the most suitable fiber route and costs associated with the route. These are preliminary timelines and are subject to change and FDF is not liable for changes.

1 7N E W S 20 23

The Greater Fort Dodge Growth Alliance

MAY 2023

24 North 9th Street, Suite A Fort Dodge, IA 50501 Phone 515-955-5500

Fax 515-955-3245 www.greaterfortdodge.com

STAFF

Dennis Plautz CEO dennis@greaterfortdodge.com

Kelly Halsted Economic Development Director kelly@greaterfortdodge.com

Jill Nelson Community Development Director jill@greaterfortdodge.com

Skyla Porter Organizational Administrator skyla@greaterfortdodge.com

Deena McCaulley Office Manager deena@greaterfortdodge.com

Lydia Schuur Communications Specialist lydia@greaterfortdodge.com

MISSION STATEMENT

“Greater Fort Dodge Growth Alliance is an efficient organization whose mission is to unify and coordinate accountable, economic and community development, to enhance the quality of life in Fort Dodge and the region.”

NewMembers

Shapespeare LLC offers body contouring, skin tightening, wood therapy, cellulite reduction, and spray tanning

Body contouring is localized non-invasive fat removal The procedure uses ultrasonic cavitation and radio frequency.

Shapespeare LLC also provides services to help lift or create volume in the gluteus using cupping

Spray tan services are offered on-site, with mobile service available for parties

Shapespeare LLC is located at 809 Central Ave, Suite 410

The Face Place provides Day Spa services specializing in skin care (facials, Procell Micrchanneling, etc), massage therapy, hair removal, lash extensions, Beettan spray tan, body treatments (contour body wrap, exfoliation, IonCleanse), and natural nail care manicure and pedicure services.

They are located at 1502 6th Ave North in Fort Dodge

Shapespeare LLC

UpcomingPrograms

tRIBBON

Community & Family Resources

Congratulations to Community & Family Resources on your ribbon cutting celebrating the opening of your new Women’s Recovery House! The house will provide transitional housing for graduates of CFR’s in-patient treatment program. Up to eight women can live in the house at a time.

County Connect Webster

Temporary New Home for Webster County Treasurer and Planning & Zoning

The Treasurer’s and Planning & Zoning Offices have temporarily moved to 723 1st Ave S in Fort Dodge. To get to the offices, please use the entrance on the southeast corner of the building, near the parking lot.

Additionally, the drive-thru will only be used for renewals and tax payments. Everything else needs to be done indoors.

Thank you for your patience and understanding as work continues on the the HVAC construction at the courthouse.

es and intellectual and other development disabilities in fifteen Iowa counties. You can contact the Webster County office by calling 515-573-1485. If you or someone you know is in crisis or simply doesn’t know how to move forward, call or text 988.

National Association of Counties (NaCo) High Performance Leadership Academy

Five more county employees have completed a twelve week NaCo High Performance Leadership Academy. Completely online, this program offers curriculum developed by the late General Colin Powell and public and private sector leaders. Participants become empowered with fundamental, practical leadership skills to deliver results for counties and residents.

Congratulations to the most recent graduates:

Mark Condon

Krystal Lloyd

Carolyn Clark

Cody Peterson

Breanna Case

Mental Health Awareness Month

May is Mental Health Awareness Month, and the National Alliance on Mental Illness is recognizing the month with the theme, More Than Enough. This theme captures the truth that each person holds value, no matter their diagnosis, appearance, socioeconomic status, background, or ability. No matter what, every person is inherently worthy of a more than enough life, love, and healing.

Webster County is a part of a mental health region and is serviced by CICS, which supports individuals and strengthens communities by serving the unique needs of people with brain health challeng-

Connecting Kids with Nature

The Webster County Conservation Board, in a partnership with the City of Fort Dodge have begun a journey to reconnect children with nature via the River District Park and River’s Edge Discovery Center. This project is the result of a multi-year, multi-faceted planning and due diligence process by Webster County, Webster County Conservation, the City of Fort Dodge, and other stakeholders. Upon completion, the Central River District Park and River’s Edge Discovery Center will be a regional hub for land and water recreation, encourage revitalization of the historic Central River District neighborhood, improve water quality and flood resiliency, provide interactive educational opportunities on riverine habitat, enhance quality of life for our communities and support economic development and ecotourism goals.

The City and County were recently awarded $4 million from the Governor’s Destination Iowa Program. The program requires a variety of funding sources, including local private dollars. The Friends of Webster County Conservation’s “Connecting Kids with Nature” Capital Campaign is now underway and is looking to raise $500,000 to complete the funding for this project.

There are multiple giving opportunities, and donors can receive special mention on the Discover Center’s Donor Wall. All gifts to the campaign are tax deductible through the Fort Dodge Community Foundation. Interested donors can help by donating online at www. fd-foudnation.org, or by contacting the Webster County Conservation Department to receive the campaign packet.

Webster County Conservation 515-576-4258

conservation@webstercountyia.org

www.webstercountyia.org

shiningstar

Abby Fridolfson

Age: 17 • Grade/School: Junior, Fort Dodge Senior High Hometown: Fort Dodge, Iowa

What do you most enjoy about creating art?

Being able to overcome difficulties within my art.

What is your favorite medium to use?

Oil Paint.

Is your family artistic? If so, in what ways. No.

In what ways will you use your artistic abilities after high school?

I hope to go to a college for art so that I can study it. I would like to learn new things about art, and how to manipulate it.

If you could see, in person, one famous piece or artwork anywhere in the world, which piece would you want to see and why?

David of Michelangelo, because I think that is fascinating to look at, and I would also go to paint his statues.

What is your favorite part about art class?

Being able to experiment with different mediums, and getting to learn new things about art.

WE CAN BUILD A VITAL COMMUNITY

We all want to see Fort Dodge thrive and prosper. We want our community to be a vital and vibrant place that we take pride in and call our home. But what is a vital community? It depends on how we look at ourselves and our community and the vision we have for the future.

Every community is different; but vital communities have things in common that separate them from the ordinary. Vital communities seem to have a community optimism that inspires a sense of hope and a “can-do” spirit. This optimism produces a community energy that creates inspired leadership and engaged citizens who work together to make a difference.

Vital communities do not fear change, they welcome it. They understand that embracing change can strengthen a community’s ability to plan for the future and take advantage of opportunities to enhance its capacity as a dynamic place to live. Building a vital community is an attempt to address the issues and problems that concern citizens the most: economic prosperity, health and well-being, positive youth support and development, educational opportunity, environmental integrity, quality of life and the welfare of future generations. Vital communities cultivate new coalitions and partnerships to address community needs and foster new development opportunities. They understand that their destiny is in their own hands and are willing to accept the risk and the responsibility for taking control of their own future.

Vital communities have an ingrained sense of connectedness, resourcefulness and resiliency. They utilize the talents and resources of their local citizens and invest in economic, social and educational opportunity for all adults, families and youth. Vital communities are demonstrating that it is possible to shift from conflict and competitiveness to collaboration and cooperation when citizens find common values and develop shared goals to guide community action. Vital communities are realizing that vision and ideas can influence actions and inspire change, but it requires a commitment on the part of the citizens to decide that it is important to get involved, to take ownership in their community’s future, and to turn choices into action.

Growing a strong, healthy and vital community requires a long-term commitment - one that needs constant nurturing, support, and resources. A vital community provides citizens with inspiring opportunities to invest in the future of their community and support a culture that advances the common good and embraces quality of life.

RANDY KUHLMAN

C.E.O FORT DODGE COMMUNITY FOUNDATION AND UNITED WAY

The Fort Dodge Community Foundation and United Way is focused on helping Fort Dodge become a vital community. The role of the Fort Dodge Community Foundation and United Way is to serve as an important resource for community investment, to help civic-minded citizens invest in their community and create new opportunities for growth, development, and prosperity for today and for tomorrow. A donor advised fund is one tool that offers donors an easy and effective way to make an immediate and a long-lasting difference in the community.

A donor advised fund provides donors with a simple, flexible, and efficient way to manage their charitable giving. Donors can make grants to their favorite charities or charitable projects at any point during the year and for any dollar amount they choose. This flexibility is unique to donor advised funds and is a very appealing option for philanthropically inclined individuals and families. With a donor advised fund, donors enjoy an immediate tax deduction for their contributions to their fund in the year they are made, yet donors maintain the option of making grants to their favorite charities or causes at a later date. This eliminates year-end pressure to select charities and distribute grants.

To establish a donor advised fund, donors can give cash, securities or property. They are then able to deduct the fair market value from their taxes. With donated appreciated securities or property, they also avoid any capital gain tax liability. If their donor advised fund is endowed, they are eligible for an additional 25% state of Iowa tax credit. The Endow Iowa Tax Credit is only available through qualified community foundations like the Fort Dodge Community Foundation.

For more information on how you can invest in your community through charitable giving by establishing a donor advised fund or other tax advantaged giving options, contact the Fort Dodge Community Foundation and United Way. Our offices are located at 24 North 9th Street Suite B in downtown Fort Dodge. Or, you can call us at 515-573-3171.

College Connect

One Purpose, Many Impacts

As the Iowa Central band welcomed students into Hodges Fieldhouse for the 56th annual commencement ceremony on May 4th, triumph rang loud and clear. Nearly 600 students crossed the stage and officially graduated with their degree or certification. Iowa Centrals’ purpose is for students to graduate in the shortest amount of time with the least amount of debt so they can go on to have a better life. Our team is dedicated to fulfilling this purpose and connecting students with the workforce or their next academic path to further their education.

Here is a brief summary of how Iowa Central impacts students and our region.

Alumni Contributions to Local Economy and Industry

Iowa Central Community College covers a nine-county service region in north central and northwest Iowa.

A combined 5,058 students from Iowa Central’s three campuses in Fort Dodge, Storm Lake and Webster City enrolled in 51,257.5 credit hours at the beginning of the 2022-2023 academic year.

Where do they go when they graduate? What type of impact do they continue to have on the area’s industries and economy?

According to a 2022 report, 1 out of every 27 jobs in the nine-county region of Buena Vista, Calhoun, Greene, Hamilton, Humboldt, Pocahontas, Sac, Webster and Wright Counties is impacted directly by Iowa Central, its students or alumni. With a gross domestic product (GDP) of $7.9 billion in the area served, the accumulated impact of the thousands of Iowa Central alumni employed in the area amounted to $116.5 million in added income to the service region’s economy and filled approximately 50 percent more jobs with Iowa Central alumni – about $57.3 million in labor in 2021 – than if Iowa Central did not exist.

A Better Life

Iowa Central’s purpose is for its students to finish their degree or certifications in the least amount of time possible and with the least amount of student loan debt so they can have a better life. Community Colleges offer the quickest educational path to the workforce with a wide variety of course schedules to meet the needs of both traditional and non-traditional students. Community colleges offer credit and non-credit skills and certifications where employees can complete their credentials in a few weeks or months and be on their way to a new career. Workers with an associate degree earn a median $2 million more over their lifetime than those with only a high school diploma or equivalent.

Easy Transfers to a University

Iowa Central offers guided pathways in various programs and categories of interest designed to help students focus on academic pathways aligned with intended careers and transfer programs. Pathways are offered in the following areas: Agriculture and Natural Resources, Business, Education and Training, Government and Public Administration, Health Sciences, Human Services, Counseling and Social Work, Law, Public Service, Corrections and Security, Liberal Arts/Undecided Majors, Social Sciences, STEM and Visual Arts.

According to CCSmart.org, enrolling at a community college can eliminate the first two years at a four-year school, often by offering the same underclass general education courses, saving thousands of dollars in the process.

Students with an Associate of Arts Degree from Iowa Central have met the freshman and sophomore requirements of Iowa’s public universities. With state universities offering a “2 plus 2” program, community college graduates can enter a 4-year state university with junior credentials upon transferring.

With open admission, starting at a community college like Iowa Central allows students to not limit themselves to choosing only the schools they were accepted to in high school. Community colleges give transfer students another opportunity to be accepted into schools they may not have applied to or been accepted to as high schoolers. Students also have the opportunity to take courses that will allow them to explore various career fields before deciding on a major.

To learn more about the programs Iowa Central offers, or to enroll today, visit our website at iowacentral.edu, or be the first to know what’s happing at the college by following us on social media @iowacentral.

SHOULD YOU CONSIDER 401(K) LOANS OR WITHDRAWALS?

At some point, you may have more money in your 401(k) than in any other investment. And even though your 401(k) is intended for your retirement, you may one day think you have to tap into your account early — but should you? And if you do, how should you go about it?

If it’s possible to avoid taking money from your 401(k) before you retire, you probably should do so. You could spend 25 or more years in retirement, and you’ll need to pay for those years, so you may want to look for alternatives to your 401(k). If you’ve built an emergency fund containing several months’ worth of living expenses in cash or cash equivalents, you could use some of this money. If you have a Health Savings Account (HSA), you could use it to pay for qualified medical expenses. Or you could sell some of your taxable investments, rather than going into your tax-deferred 401(k).

But if you have determined that you must look at your 401(k) plan to meet a short-term funding need, you’ll want to carefully consider how to go about it. You typically have two main choices: loans or withdrawals.

For plans that allow loans, employees can generally borrow up to 50% of the vested amount of their 401(k)s, up to a maximum of $50,000 within a 12-month period. Administrative fees may apply, and Interest will be charged, but it will be added back to the 401(k) account as part of the loan repayments. Except when they’re used for a home purchase, loans must be repaid within five years, with equal payments made at least quarterly, unless payments are allowed to be paused temporarily. If you leave the company or don’t repay the loan according to the agreement, the loan balance will likely be treated as a taxable distribution.

Now, let’s consider withdrawals. For 401(k) plans that allow current employees to make withdrawals, the withdrawal requests are usually considered either hardship or non-hardship. To qualify for a hardship withdrawal, you must demonstrate an immediate and heavy financial need to pay for certain expenses, including a home purchase, college, a medical issue or other specified costs, and your withdrawal

is limited to the amount necessary to meet the need. Non-hardship withdrawals can typically be taken for any purpose but usually are not granted until you’re 59½ or older.

Unlike with a loan, a hardship withdrawal can’t be repaid, while a non-hardship withdrawal can usually only be repaid by rolling over the amount to an IRA within 60 days. But the bigger issue may be taxes. If you withdraw funds from your 401(k), any previously untaxed money is generally taxed as ordinary income and a 10% penalty will apply if you’re younger than 59½, unless you qualify for an exception. Plus, your 401(k) plan typically must withhold 20% of the withdrawal for taxes, so you’d have to take an even larger withdrawal to meet your needs.

Before embarking on a 401(k) loan or withdrawal, you may want to consult with a financial professional and your tax advisor. Taking money from your 401(k) is a big move, so make sure you know everything that’s involved.