HOW DOES MY 401(k) WORK?

RETIREMENT AND YOU

SAVING FOR RETIREMENT IS IMPORTANT

Planning for a 401(k) can seem confusing. That's why we've tried to keep things straightforward.

A 401(k) plan is simply a retirement savings account that is offered to employees. With a 401(k) savings plan, the money you elect to contribute to your retirement savings account is deducted from your paychecks and automatically deposited. 

MAKING SAVING FOR RETIREMENT EASY

In order to qualify for 401(k) deferrals, employees must be employed with the company for one month. At that point, they're free to begin deferring their pay to the 401(k) plan! And even better, the company will match your contributions beginning on the 1st day of the calendar quarter following your one-year anniversary! That's free money!

Here is an example: Assuming total eligible pay for a paycheck is $1,500.00, here is how much you and the Company will contribute to your 401(k) account, depending on the percentage you elect to contribute:

Helpful Tips

  • The Company matches up to the first 5% you contribute – 100% on your first 3%, and 50% on the next 2%. 
  • Be sure you're contributing at least 5% of your pay to receive the maximum Company Matching contribution. Otherwise, you will be leaving some of that free money on the table!
If you to contribute this percent of your pay... Your paycheck deduction will be The company match will be. For a total deposit to your 401(k) plan account of
1% $15.00 $15.00 $30.00
2% $30.00 $30.00 $60.00
3% $45.00 $45.00 $90.00
4% $60.00 $52.50 $112.50
5% $75.00 $60.00 $135.00

(Note: Company match begins on the first day of the quarter following your one-year anniversary. Company contributions made for the 1-15 of the month appear on the 22nd paycheck. EXAMPLE - Employee begins working February 6, 2019, reaches one year of employment February 6, 2020, begins receiving company match in April 2020. This employee can expect to see the match on their April 22, 2020 check.)

IT ONLY TAKES A FEW MINUTES TO SIGN UP

Activate your 401(k) account at the Fidelity Investments NetBenefits website www.netbenefits.com.

Start by entering the last 4 digits of your Social Security number. Next, enter your first and last name, and date of birth - click the next button. If you are having trouble activating your account click to Review this how-to guide

Follow the helpful guidelines on the 401(k) website to set up your paycheck contributions and investment choices. For one-on-one help setting up your account, call Soltis Investment Advisors at 800-735-1601.

NEED INVESTMENT ADVICE?

We’ve partnered with Soltis Investment Advisors to provide you with web-based and telephone 401(k) advice. This service allows you to speak with an adviser, trained, and licensed to help you evaluate your risk tolerance, financial goals, and provide specific plan contributions and other information. Soltis offers one-on-one consultations with unbiased education. To schedule a consultation or for additional details, contact Solitis at www.soltisadvisors.com or call 800-735-1601.