At Big 5, we believe that financial wellness is key to a winning strategy for your future. To help you prepare for retirement, we sponsor a 401(k) plan through Fidelity.

Eligibility

You’re eligible to join the 401(k) plan if you’re a full-time employee, 21 years or older, and have completed 90 days of employment.

Part-time employees may also be eligible. Please contact HR to confirm your eligibility.

Once you’re eligible, you can enroll, designate beneficiaries, and allocate your assets at any time—there’s no need to wait for Open Enrollment to make adjustments.

Roth vs. Traditional

With Big 5, you can contribute to either a pre-tax Traditional 401(k) or an after-tax Roth 401(k). The key difference lies in the tax strategy:

• Traditional 401(k) contributions are tax-deferred, meaning you’ll pay taxes when you withdraw the funds in retirement.
• Roth 401(k) contributions are taxed upfront, but the money you withdraw in retirement is tax-free. Consider a Roth 401(k) if:
  • You expect to be in a higher tax bracket when you retire.
  • You want the peace of mind that your retirement withdrawals won’t be taxed.
  • You’re planning to hold the account for at least five years to avoid penalties on early distributions.

Note: Big 5’s matching contributions to your 401(k) are made on a pre-tax basis and will be taxed when you take distributions.

Helpful Tips to Save for Retirement

• Start saving early to grow your retirement account over time.
• Start small if needed, and gradually increase your contributions as you go.
• Make it a habit to set aside money for your future, every little bit counts!
• Keep in mind that investment returns fluctuate, stay the course!
• Avoid penalties by letting your funds sit until retirement age.
• Roll over your retirement savings if you change jobs, to stay on track.