401(k) retirement plan

Preparing for retirement is a part of smart financial planning. titch Fix provides a 401(k) plan through Charles Schwab to help you start saving now. Charles Schwab offers a variety of investment options to grow your earnings.

Eligibility

You are eligible to participate in the 401(k) plan on your date of hire and are eligible for the company match after one year of employment and 1,000 hours worked within your 12-month anniversary period.

When eligible, you may enroll in the 401(k) plan, designate beneficiaries, and allocate your asset distribution at any time. You do not need to wait for annual enrollment to make changes.

Personal contributions to your 401(k) are pre-tax and are added to your account conveniently through payroll deductions.

Advantages of a Roth 401(k)

Traditional 401(k) contributions are pre-tax, so you don’t pay taxes until you withdraw the money in retirement.

Roth 401(k) distributions are post- tax, so you pay taxes during the year when you make contributions, but you don’t pay taxes when you withdraw the funds in retirement. Funds grow tax-free in a Roth account.

While you may elect to make contributions to both a traditional 401(k) and a Roth 401(k), you may only contribute a combined total of $22,500 per year.

If you’re age 50 or older, you can make “catch up” contributions
up to $6,500 per year. You don’t need to make a separate election
to contribute additional “catch up” funds. Your contributions will simply continue until you meet the annual “catch up” limit.

Save for retirement like a pro

• Start saving as soon as possible.
• Begin with small contributions and increase contributions over time.
• Take advantage of the company match.
• Understand investment returns may fluctuate.
• Let it sit. Avoid penalties by leaving funds in your 401(k) until retirement.
• If you change jobs, you can roll over your retirement account.