Enroll in the plan
Get started by visiting the Fidelity website to view plan details and access forms and documents.
Taking steps to ensure your current and future financial security is an important part of your overall well-being. The Acme Retirement Savings Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.
Key advantages at a glance
Company profit-sharing contributions.
You’ll share in the company’s success whether or not you contribute to the plan.
Company match.
Acme will make a matching contribution on the first 6% of your pay you contribute.
Current tax savings.
You’ll pay less in income taxes when you make before-tax contributions.
Tax-deferred investment growth.
With before-tax contributions, your money has the potential to grow faster.
Wide range of investment choices.
Choose how you want to invest your money.
Convenient payroll deductions.
The Acme Retirement Savings Plan makes it easy to save for your future.
Eligibility and enrollment
You are immediately eligible upon your date of hire. If you don’t take any enrollment action — either enrolling yourself or opting out — within 90 days of becoming eligible, you will be automatically enrolled, and 3% of your eligible before-tax pay will be invested in the Target Date Fund that most closely matches your retirement date, based on an assumed retirement age of 65. You may change your contribution rate and investment elections at any time by visiting the Fidelity website or calling 1-800-123-4567.
You may contribute between 1% and 50% of your eligible pay to your plan account, up to annual IRS limits. In 2020, the IRS limits allow you to contribute up to:
- $23,000 if you are under age 50
- $30,500 if you’re age 50 or older this year (which includes an additional $7,500 in catch-up contributions, made as a separate dollar amount election).
These limits include your before-tax contributions, Roth after-tax contributions, or a combination of both.
You also have the option of contributing to the plan with after-tax money, up to 100% of your eligible pay.
Before-tax vs. Roth after-tax: What’s the difference?
The Acme Retirement Savings Plan gives you the flexibility to save for retirement in a
variety of ways. You can make before-tax contributions, Roth after-tax
contributions, or a combination of the two.
Before-tax contributions
The money goes into your account before taxes are deducted, so you keep more of your take-home pay. Then, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).
Roth after-tax contributions
The money goes into your account after taxes are withheld. Then, both your contributions and any associated earnings can be withdrawn tax-free in retirement.*
* In order for Roth earnings to be withdrawn tax-free, you must meet these two requirements:
- At least five years have elapsed since your first Roth contribution.
- You are at least 59½ or the withdrawal follows death or total disability.
Catch up!
It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.
To help you reach your retirement planning goals, Acme will also contribute to your account!
Automatic company contributions
Each year, Acme makes automatic contributions to your account equal to 6% of your eligible pay — whether or not you choose to contribute.
Company profit-sharing contributions
Each year, Acme makes automatic profit-sharing contributions to your account equal to a percentage of your eligible pay — whether or not you choose to contribute.
Company matching contributions
Acme matches 100% of your before-tax and Roth after-tax contributions to the plan, up to 6% of your eligible pay, to support your retirement saving efforts.
Here’s how the company match works:
Meet the match!
Try to contribute at least 6% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to your Fidelity account to increase your contribution rate.
Discretionary company contributions
Depending on company performance, Acme may make an additional discretionary contribution to your plan account — whether or not you choose to contribute.
Vesting is another way of saying “how much of the money is yours to keep if you leave the company.”
You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in company contributions over time, based on the following schedule:
| Your years of service | Your vested percentage |
|---|---|
| Less than 1 | 0% |
| 1 but less than 2 | 20% |
| 2 but less than 3 | 40% |
| 3 but less than 4 | 60% |
| 4 but less than 5 | 80% |
| 5 or more | 100% |
It’s important to designate a beneficiary to receive the value of your Acme Retirement Savings Plan account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit the Fidelity website to add or change a beneficiary.
The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit the Fidelity website or call 1-800-123-4567.
Think before you act
If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your financial future.
- Taking money from your account now may lead to a smaller savings balance when you retire.
- Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it even harder to get back on track.
- If you take a plan loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.
- If you withdraw before-tax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left the company).
Take an active role in your retirement planning by using these tools and resources.
Retirement calculator
Estimate how much you may need now and how much you may have saved for retirement.
Professional guidance
Consult with a professional financial advisor and receive guidance to help you achieve your goals.
Fidelity website
Access tools and education on your plan website to help you make informed investment decisions.
Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Call 1-800-123-4567 for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Please read them carefully. Investing involves risk, including the risk of loss.