Frequently Asked Questions
-
Benefits To Participation
-
Glossary
























top



























top



























top














 

401(k) MOST FREQUENTLY ASKED
QUESTIONS & ANSWERS

1. What is a 401(k) plan?

A 401(k) plan is a savings plan that provides a unique opportunity to contribute pre-tax dollars to an investment plan. The plan enables you to save money for your long-term financial future and receive tax savings not only on your contribution but on the interest and investment return as well as your company's matched contributions.

   

   

2. I am too young for this type of a program...why would I want to enroll?

401(k) is an excellent savings plan offering an immediate tax savings, quality investments, and a matching contribution from Fitch & Mather up to the first 5% you contribute. By not participating in the plan, you are not taking full advantage of your complete Fitch & Mather compensation package. Even a small contribution rate can provide immediate tax savings and a faster growth rate on your investments due to the tax-deferred status of the plan and the matching funds from Fitch & Mather. No one is "too young" to start saving money, and few savings plans will give you a 50% match for doing so...ENROLL NOW!
 

 

3. How do I enroll?

You are eligible to enroll in the 401(k) plan during the Open Enrollment period following your date of hire. To enroll, just select the "Sign Up" option on this web site!
   

   

4. What are deductions based on?

Payroll deductions are based your salary from Fitch & Mather.
 

 

5. How is the money taxed that is deposited into a 401(k) plan?

Your payroll contributions are not subject to federal withholding when made, only social security (FICA), up to certain limits. Interest earnings and Fitch & Mather matching contributions are taxed only when withdrawn. All funds that are distributed out of your account are subject to taxation. Favorable tax treatment for distributions upon termination of employment begins after attaining age 55.
   

   

6. How much can I defer into 401(k)?

You can defer up to 15% of your eligible compensation, up to a maximum deferral of $9,500 in 1997. This amount does NOT include Fitch & Mather's matching contributions. Your contributions automatically stop once you reach the maximum deferral amount, and automatically resume the first pay period of the following year. Matching contributions continue until the formula of 50% of deferrals, up to a 5% deferral rate, has been reached.
 

 

7. Can I make changes to my 401(k) account?

You can make investment changes to your 401(k) by chosing the "Online" option on this web site.


Copyright © 1999
Microsoft Corp.
and/or its suppliers