Belk is committed to supporting your financial well-being — today and tomorrow. The Belk 401(k) Savings Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.
Key advantages:
- Upon hire you are eligible to participate in the Belk Belk 401(k) Savings Plan (enrollment is available the day of first paycheck).
- You are eligible for a matching contribution once you’ve completed three months service.
- Belk will match 100% on the first 4% contributed and match 50% on the fifth and sixth percent contributed, for a maximum match of 5%.
- Current tax savings
- Tax-deferred investment growth
- Wide range of investment choices
- Convenient payroll deductions
Manage your account
Visit Schwab to enroll or manage your plan account:
Enroll in the plan
Check your balance
Change your contribution rate
Manage your investments
Update your beneficiary
Use planning tools and calculators
Access forms and documents
You may contribute between 1% and 60% of your eligible pay to your plan account, up to annual IRS limits. In 2022, you may contribute up to:
- $20,500 if you are under age 50 (pre-tax, Roth after-tax, or a combination of both).
- $27,000 if you’re age 50 or older this year (which includes an additional $6,500 in catch-up contributions, made as a separate dollar amount election).
You also have the option of contributing to the plan with after-tax money, up to 60% of your eligible pay.
What’s the difference?
Pre-tax vs. Roth after-tax
The Belk Belk 401(k) Savings Plan gives you the flexibility to save for retirement in a variety of ways. You can make pre-tax contributions, Roth after-tax contributions, or a combination of the two.
| Pre-Tax | Roth after-tax |
|---|---|
| The money goes into your Plan account before taxes are deducted, so you keep more of your take-home pay. Because you don’t pay taxes at the time you contribute, 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). |
The money goes into your Plan account after taxes are withheld. In exchange for paying taxes now, both your contributions and any associated earnings can be withdrawn tax-free in retirement, provided you meet two requirements:
|
Keep in mind that company contributions are made pre-tax no matter which contribution type you select.
To help you reach your retirement planning goals, Belk contributes to your account.
Company Matching Contributions
To support your retirement saving efforts, Belk matches 100% of your contributions to the plan after three months of employment, up to 4% of your eligible compensation, and 50% of the next 2%, for a combined match of 5%.
Meet the Match!
Try to contribute at least 6% to take full advantage of the match — otherwise, you’re saying “No, thanks” to free money.
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’re also 100% vested in Belk’s company contributions to your account.
Have You Named a Beneficiary?
It’s important to designate a beneficiary to receive the value of your Belk Belk 401(k) 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 Schwab 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 Schwab or call 1-800-724-7526.
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 pre-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).
Make the most of your retirement planning by taking advantage of these tools and resources available at Schwab:
- Schwab Retirement Planner — Get ongoing professional management and a personalized savings and investment approach.
- Target Date Retirement Funds — Vanguard’s Target Date Retirement Trust Funds offer a diversified approach to retirement, without the effort.
- Plan-Selected Funds — Use plan-selected funds to manage your own portfolio.
Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Call 1-800-724-7526 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.