Basics about your 401(k) savings plan
Contributions to your 401(k) plan are from pre-tax income, meaning you won’t pay taxes on it until it is distributed to you, normally at retire. Here’s some basic information:
- You may enroll in the plan on the first day of the calendar quarter following six months of employment.
- You choose how much to contribute. You can contribute up to 75 percent of your pay up to the annual IRS limit. If you are age 50+, you may be eligible for an additional “catch-up” contribution. You can change the amount you are contributing at any time.
- You direct how your account is invested. You choose from a variety of funds offered through Fidelity and can change how your money is invested at any time.
- Your investments stay with you. If you change employers before retirement, you may roll your 401(k) over to another employer’s plan or to an IRA. If you die, your beneficiary will receive your benefits.
- You can access your funds prior to retirement at the following times: age 59 and a half; if you become disabled as defined by the plan; and if you experience financial hardship as defined by the plan.
*Note: The 401k savings plan is not available to employees who are members of a labor union with
which the company has negotiated in good faith concerning retirement benefits, unless the labor contract
makes the 401k benefit applicable to those employees.
Enrolling in the 401(k)
After completing, 6 months of continuous employment, log on to the Fidelity website.
The rest is easy:
- Create your personal account
- Review the investment opportunities Fidelity offers.
- Make your elections.
- Once you make you set-up your account and made your elections, complete this form and give it to your payroll manager.
Your deductions will begin on the 1st day of the following quarter.