Saving for Retirement
Your 401(k) Plan
To help accumulate savings for your retirement, we provide a 401(k) retirement savings plan to all full-time employees who are 18 years and older and have met the eligibility requirements. Your plan allows you to make contributions from 1% to 100% of your eligible compensation up to the annual IRS limits. If you are over the age of 50 you can make a special catch-up contribution each year.
You can invest your money into a variety of funds from pre-assembled target date funds based on your anticipated retirement date to individual stocks, bonds or stable-value funds or a combination of funds.
There are two different 401(k) options available to choose from:
- Pre-Tax: This type of 401(k) contribution lowers your taxable income today and grows tax-free, but will be taxed upon distribution.
- Post-Tax (Roth): This type of 401(k) contribution is taxed today and grows tax-free, but will NOT be subject to tax at distribution.
401(k) Match
Our ongoing goal is to offer competitive benefit plans and encourage employees to be saving at recommended levels for retirement. It is recommended that you contribute 12-15% of your annual pay into a 401(k) each year for retirement.
As a company, we contribute a percentage match to help employees meet recommended annual savings levels. We match 50% of every dollar you contribute up to a maximum of 5%. In other words, if you contribute 10% of your salary to your 401(k), the Company will contribute another 5%. We will make this contribution whether you participate in the pretax 401(k), post-tax (Roth) 401(k), or both. The match will always be considered pre-tax funds.
New Hires
When you become eligible, you will be emailed (or mailed if there is no email address on file) information from T. Rowe Price stating that it’s time for you to make a decision on your contributions. You will be auto-enrolled at 6% upon completion of 90 days of employment. If you elect not to contribute to the 401(k) you may opt out or make changes to your contribution level by contacting T. Rowe Price at 1-800-922-9945 or by going online to www.rps.troweprice.com.
Vesting Schedule
The Company’s matching contribution incorporates a vesting schedule based on how long you have worked for the Company and vests after each year of employment. The money you put in is always your money, but the company match needs to vest based on your tenure.
