What is a 401(k)?How much should I contribute?Is there a maximum amount I can put in?
Plan Options: 401(k) Plan
A 401(k) is a savings and investing plan that gives you a tax break on money you set aside for retirement. Contributing to a 401(k) plan may be one of the most important things you can do to prepare for your long-term financial needs. Being on track to meet your financial goals will provide you and your loved ones peace of mind. A 401(k) plan allows you to contribute a portion of your compensation per pay period in order to prepare for retirement. If you are already contributing to the 401(k) plan, now may be a good time to increase your contributions.
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Retirement Plan |
What is a 401(k) plan?
401(k) refers to a section of the IRS Code that allows you to save part of your compensation on a Traditional PRE-TAX Basis. This lowers your current taxable income and helps your long-term saving grow faster. You may also choose to save part of your compensation on an AFTER-TAX Roth Basis. Roth contributions are taxed before they are contributed to the Plan. This allows tax-free growth and distribution contributions and the earnings on those contributions (assuming the contributions have been invested for at least 5 years and you have reached age 59 1/2).
Investment Changes
You can switch between investment alternatives as often as permitted under the chosen investment.
Vesting
You always own 100% of the contributions you make to the 401(k) and their earnings.
Employee Contributions
Employee contributions on a pre-tax basis up to 100% of income, to a maximum of $23,000 in the 2024 calendar year (adjusted annually). If you are 50 by the end of the 2024 calendar year, you may make additional pre-tax contributions up to $7,500 (adjusted annually).
Company Contributions
Contributions made on a pre-tax basis are known as Elective Deferral Contributions. You may elect to defer up to 100% of your Plan Compensation on a pre-tax basis. You may also elect to make a contribution to the Plan on an after-tax basis. These after-tax contributions are known as Voluntary Contributions and you may make an after-tax Voluntary Contribution the Plan of up to 100% of your Plan Compensation. Your combined pre-tax and after-tax contributions may not exceed 100% of your Plan Compensation. The company may elect to make qualified nonelective (profit sharing) company contributions. If you are an employee in an eligible class of Employees, you will be an Eligible Participant for that Plan Year for the purposes of receiving an allocation of qualified non-elective contributions.
Contribution Changes
You may change the amount of your contribution whenever you like.
Investment Choices
Contributions to the Plan are held in a trust account. The plan trustees regularly review the investment options offered. You can: 1) build a customized investment portfolio, 2) select an investment option based on your investment style, or 3) select an investment option designed by experts based on your age and projected retirement date.
Enrollment
You are eligible to enroll in the Plan if you are 21 or older and have completed 3 months of service. You must log in and enroll through Workday. Contact your payroll/benefits Crumbl contact for additional information on enrolling in Workday. After enrolling in Workday, visit retirementvista.com to check your funds and investments. For further instruction, please see here.
