Save For Your Future
Our 401(k) Retirement Savings Plan through Fidelity helps you save money for retirement while providing tax benefits. You get the choice of a Pre-Tax 401(k) or a Roth 401(k) – or both, if that works for you. Either one will help you keep more of those dollars in your pocket so you can enjoy a nice, big nest egg when you’re ready to retire.
What’s a 401(k), you ask? Here’s some basic information you need to know before you get started. The 401(k) is a company-sponsored retirement savings plan that allows you to make payroll contributions directly into your savings account.
There are two types of 401(k) contributions: Pre-Tax and Roth. There are different advantages to both, and some people even like to have both throughout their careers.
Here are the main differences:
|Pre-Tax 401(k)||Roth 401(k)|
|Contributions are deducted from your paycheck before taxes are withheld, reducing your taxable income.||Contributions are deducted from your paycheck after taxes are withheld.|
|You pay income tax on your withdrawals, including any capital gains.||Withdrawals are tax-free if you own the account for at least five years and have reached age 59 ½.|
|You can contribute up to 75% of your eligible compensation, up to the IRS limit each year. For 2018, this limit is $18,500, or $24,500 if you’re 50+.|
Good news! Employees and interns are eligible to participate immediately upon your date of hire. Employees are auto-enrolled at a 6% contribution rate after 30 days of employment, but interns are not auto-enrolled. You can change this at any time, so don’t worry if your financial situation changes throughout the year.
Manage your 401(k) through Fidelity’s website or call customer support with questions:
Fidelity Customer Support: 800-294-4015
Want to know more? Here are some documents to help you better understand and manage your plan. Please note, you will need to be on the ServiceNow network to access the below links.