401K plan

Joined
Nov 6, 2016
Messages
28
Can someone explain Target's 401K plan?

I know they match the first 5% you contribute.

Does it reduce the amount you report on your taxes? Do you have to report Target's contribution?

If I leave Target, what happens to my money?

Any information would be greatly appreciated so I can make an informed decision.
 
When you are eligible for the 401k, they will mail you an information packet. You can also visit the target pay and benefits website. You really should read the material given to you. You can't make a really informed decision based off of this website since it is not run by Target. You would know this if you read the page when you signed up.
 
Your 401k comes out pre-tax on your paycheck unless you deliberately enroll in the Roth, effectively reducing your taxable income. The money is taxed when you withdraw it.

I'm unsure about reporting.

When you leave Target you can either keep your money in their 401k (although I don't think you can continue contributing and they definitely won't match it if you can) or roll it over into an external IRA.
 
Can someone explain Target's 401K plan?

I know they match the first 5% you contribute.

Does it reduce the amount you report on your taxes? Do you have to report Target's contribution?

If I leave Target, what happens to my money?

Any information would be greatly appreciated so I can make an informed decision.

Your 401k contributions are not taxable, though there are stiff penalties for withdrawing early.

If you leave Target, you usually either have the option to roll it over into your new employers plan or let it sit. A financial planner can advise you on the best solution for your specific needs.
 
Bumping this thread because I think the 401k plan is overlooked by new, younger TMs. Target's 401k plan is better than many. They match dollar-for-dollar the first 5% of what you put in, every paycheck. Their money, as well as yours, vests immediately, so you don't lose any of the contributions if you leave. The investment costs are lower than many 401k programs. There's lots of official information on the 401k at the Target Pay and Benefits site.
 
Bumping this thread because I think the 401k plan is overlooked by new, younger TMs. Target's 401k plan is better than many. They match dollar-for-dollar the first 5% of what you put in, every paycheck. Their money, as well as yours, vests immediately, so you don't lose any of the contributions if you leave. The investment costs are lower than many 401k programs. There's lots of official information on the 401k at the Target Pay and Benefits site.
I LOVE my 401K benefit and match. It’s a no-brainer for me, free extra money.
 
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