It’s never too early or too late to start planning for your retirement.
Besides confidently preparing to retire while also providing financial stability for your family, there are four other good reasons why you should consider enrolling in a retirement plan or increasing the percentage you’re currently investing.
After checking out the four reasons below, call Fidelity at 1-800-835-5087 or log on at www.401k.com to change your contribution percentage or to enroll in a plan.
Mohawk contributes to your savings. The Company helps you build up your savings by matching the funds you contribute to your account. Mohawk will match 50 percent of the first six percent of your wages that you contribute. The sooner you take advantage of the Retirement Savings Plan, the more you benefit from the Company’s contributions. If you are contributing less than six percent, you are not receiving the full Company match.
It provides tax savings. Your contributions are made before income taxes are withheld from your paycheck, so you do not pay federal income tax (and, in most locations, state and local taxes) on the money you contribute. And, you don’t pay taxes on the money in your account until you take a distribution from the plan.
Your money goes with you. 100 percent of the money you put into your 401(k) account is yours to take if you leave Mohawk. After one year of participation in the plan, 100 percent of the funds contributed by Mohawk are also yours to take if you leave. In financial terms, this means you are 100 percent vested in your personal contributions immediately and 100 percent vested in Mohawk’s contributions after one year.
You choose your investments. You’re able to select how the money in your account will be invested among several investment options in the plan. The investment options you select depend on the level of risk you are willing to take and your overall investment goals. If you do not make specific investment elections following your enrollment in the plan, your contributions will continue to be invested entirely in a default fund as established by the plan. Specific fund information is available from Fidelity via www.401k.com, or by calling customer service at: 800-835-5087.