401(k) Savings Plan
The 401(k) Savings Plan provides a convenient and tax-advantaged way for you to save for your future. With this plan, you can save regularly and consistently through automatic payroll deductions, which makes it easier for you to build your retirement savings. For help with investment and contribution decisions, take advantage of the Edelman Financial Engines 401(k) tool by going to www.NetBenefits.com (Navigate to Edelman Financial Engines (EFE) > Select Your Plan > 401(k) Tool).
Key Features
- Automatic enrollment. If you take no action, the company will automatically enroll you in the plan as soon as administratively feasible 45 days from your latest hire date. You can enroll, change your contribution rate or stop contributing at any time with Fidelity.
- Company contributions. To help you save for your future, FMP matches 50% of your contributions up to 9% of eligible earnings, for a maximum match of 4.5%. Be sure to contribute at least 9% so you don’t lose out on this free money! The company matches pre-tax, Roth and after-tax contributions.
- Vesting. You’ll always own (be “vested” in) the money you and the company contribute to your account, as well as any earnings on that money.
- Investment control. You direct how your 401(k) account will be invested among options available in the plan.
- Flexibility. You may change your contribution rate or your investment elections at any time.
- Loans and withdrawals. You can take a loan or withdrawal from your account while you are working for FMP, under certain conditions.
- Portability. When you leave the company, you can take your account balance with you or leave it in the plan (if your 401(k) account is worth more than $1,000).
Contributing to the Plan
Here are the types of contributions you can make. The IRS limits the amount you and FMP can contribute to the plan. These limits are adjusted annually, and you’ll be notified when they change. See the Summary Plan Description for more details.
- Pre-tax, Roth and after-tax contributions. You may save up to 25% of your eligible earnings (up to the IRS limit) on a pre-tax basis, Roth basis, after-tax basis or a combination of the three.
- Catch-up contributions. If you’re 50 or older — or will turn 50 before the end of the year — you can make additional catch-up contributions beyond the pre-tax/Roth contribution limit.
- Rollover contributions. You may roll over money from another eligible employer plan at any time.
For 2024, all contributions (yours and the company’s) cannot exceed $69,000 ($76,500 if you’re 50 or older) in one year.
| Contribution Type | What Is Taxed at Distribution |
|---|---|
| Pre-tax | Contributions and earnings |
| Roth |
Nothing, if:
|
| Catch-up | They will be taxed as shown above, depending on whether they were pre-tax or Roth contributions |
| After-tax | Investment earnings only |
| Rollover | They will be taxed as shown above, depending on whether they were pre-tax or after-tax |
Making Investment Decisions
After deciding on how much and which way you want to contribute to the plan, you’ll need to choose how you invest your funds.
To help achieve long-term financial security, you should carefully consider the benefits of a well-balanced and diversified investment portfolio. With the FMP plan, you can select from a variety of investment options that range from conservative to aggressive, based on your comfort level with risk, making it easy for you to develop a well‑diversified investment portfolio.
How comfortable are you with making investment decisions?
Invest It for Me: Target Date Funds
A mix of investments that is auto-adjusted as the fund nears its target retirement date. Consider this option if you want a simplified, all-in-one approach.
Do It Myself: Core Investment Options
Several mutual or collective funds. Consider selecting a diverse mix of investments from this option if you’re comfortable choosing your own mix of stocks, bonds and short-term investments.
No single approach works for everyone, so seek financial help if you need support making investment allocation decisions.
The Importance of Asset Allocation
In the future, your dollars won’t be able to buy as much as they can today due to inflation — the rate of increase in the price of goods and services. The higher inflation is, the faster prices are rising, and the less your money can buy. That’s why it’s crucial to pick a mix of investments that will enable your savings to grow at a rate that’s much faster than inflation.
When and How Benefits Are Paid
Depending on the value of your 401(k) account when your employment ends, you may be able to leave your balance in your account, take it as a total or partial lump sum or receive it in automatic monthly or annual cash installments. If the value of your account is:
- More than $1,000, you may request an immediate distribution or choose to leave your funds in the plan until a later date. However, you must begin to receive payment by April 1 following the year you turn 73 or leave FMP, whichever is later. If you leave your balance in the plan, your account will continue to receive investment earnings, but you’ll also pay ongoing administrative fees.
- $1,000 or less, it will be distributed to you automatically as soon as possible after you leave.
If you elect monthly or annual installments, you may cancel or change that election at any time and then elect a total or partial lump sum. You may apply for a distribution or a withdrawal by contacting Fidelity. In some cases, early distribution penalties could apply.
Note: See the 401(k) Savings Plan SPD for details on hardship withdrawals and loans.
A Word About Taxes
Retirement benefits are generally treated as taxable income at the time you receive payment. The way they’re taxed depends on the kind of contributions you made and where you live.
If you take a lump-sum payment, there may be significant tax consequences. When you request a distribution, you’ll receive a special tax notice about the tax consequences of taking a distribution. You should consult a tax advisor before making any decisions because the tax laws governing payments are complex.
Don’t forget!
Elect your beneficiary(ies) using this form so that your benefits are paid out according to your wishes if the unexpected occurs.
Capital Accumulation Plan (CAP)
The CAP provides even more savings to help you plan for your future.
Did you know?
The median retirement savings for American households is $87,000. No wonder many Americans (67%) feel like they’re not on track for retirement. Get started now with financial help resources now so that you can plan and save for the future.
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