It’s never too early to start saving for your future, and it’s easy with the SaveSmart 401(k) Plan. When you enroll, you decide how much to contribute to the plan through easy payroll deductions – from 1 to 50 percent of your pay up to the IRS annual maximum. And you get to take advantage of the many benefits this plan provides, including tax savings, free money from PetSmart, and a choice of investment options that allow you to create your own personalized investment strategy. You can participate in the plan if you are 18 years of age or older and have completed two months of employment with PetSmart.
There are three great reasons why you should participate in the 401(k) plan:
- You get free money from PetSmart. For every dollar you contribute, up to 6 percent of your pay, PetSmart deposits 50 cents into your account. For every calendar year you work 1,000 hours, you own 20 percent of the value of the company’s contributions. (That’s called vesting.) So, after five years, you own 100 percent of PetSmart’s contributions. You’re always 100 percent vested in your own contributions.
- You save on taxes. You contribute to the plan with pretax money (that’s money you invest before taxes are calculated on your pay), so you’ll owe less to the IRS. Your contributions and their earnings grow tax-free until you withdraw your money from the plan.
- Roth 401(K) option provides an additional way to save in your plan. Unlike a traditional pre-tax 401(k), the Roth 401(k) allows you to contribute after-tax dollars and then withdraw tax-free dollars from your account when you retire. Fidelity has created a video that walks you through a Roth vs. Traditional plan.
Did you know that as a SaveSmart 401(k) plan participant you have access to free financial help through Fidelity? From workshops to online tools to Fidelity’s registered phone representatives, you have resources available to help you put a plan in place. Watch this quick three-minute video to see all the help available, then get started on your next steps towards financial wellness!
To learn more, check out these 401(k) resources and frequently asked questions.
Financial tools through Fidelity
By creating a login on Fidelity’s website you can access a variety of tools and resources, such as: