The Exchange partners with Fidelity Investments to offer a 401(k) plan designed with associates in mind. The plan provides associates financial flexibility, control and long-term growth potential.
“More than 12,000 Exchange associates have an active Fidelity 401(k) plan,” said Exchange Benefits Director Annie Baker. “Some even have more than $1 million accumulated in their accounts!”
Whether associates are just getting started or have retirement on the horizon, it’s never too late to take a smart step toward financial security by contributing to a 401(k). Here’s what associates need to know.
Who is eligible to contribute to a 401(k)?
- Regular full-time and regular part-time associates can participate.
- As of Jan. 1, 2025, all intermittent, temporary full-time and temporary part-time associates who worked at least 500 hours in each of the previous two consecutive years are eligible to contribute. These associates will be identified every January and automatically enrolled in the plan.
- Associates have 30 days to unenroll before payroll deductions begin; however, associates can unenroll at any time.
Why should I set up at 401(k) with Fidelity?
- Tax benefits: You can make a pre-tax contribution, reducing your taxable income.
- Flexible contribution amounts: You choose how much to contribute within the plan and IRS limits, and you can adjust your rate whenever life changes.
What is the difference between the pre-tax (traditional) and Roth 401(k)?
- Pre-tax (traditional) 401(k) contributions reduce your regular current taxable income, but the distributions in retirement are taxable as ordinary income. Additionally, you are subject to required minimum distributions.
- Roth 401(k) contributions are made with after-tax dollars, but withdrawals in retirement are tax-free, including earnings. Additionally, there are no required minimum distributions during the account owner’s lifetime.
How much should I contribute?
- There’s no one-size-fits-all answer. Think about your financial situation, your retirement goals and what you can comfortably set aside. Even small contributions grow over time. Think of it as planting a seed that future you will be very happy you watered.
What happens if I deploy, change roles or leave the Exchange?
- Just like the Exchange, your 401(k) goes where you go! The money you contribute remains in your Fidelity account regardless of where life or the Exchange takes you.
How does the 401(k) work with my pension?
- A 401(k) is funded by you, the associate, with the option to contribute pre-tax. A pension is primarily funded by the Exchange.
I have a 401(k) through Fidelity, what resources are available to me?
- Fidelity hosts monthly workshops covering a wide range of retirement topics. To view upcoming sessions, log in to Fidelity and select Plan & Learn. Regardless of whether you contribute to a 401(k), all Exchange associates are welcome to attend the online webinars.
Are you eligible for catch-up contributions?
- If you are at least 50 years old, you are eligible to contribute an additional amount to your 401(k). In order to receive this benefit, you must log into Fidelity and designate a contribution amount.
- Beginning Jan. 1, if you’re turning 50 in 2026 and your 2025 FICA wages exceed $150,000, your catch-up contributions must be Roth (after-tax).
- If your 2025 FICA wages are $150,000 or less, you can continue choosing either pretax or Roth catch-up contributions. Pretax catch-up elections will end on Dec. 31 for associates who meet the criteria.
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