Taking steps to ensure your current and future financial security is an important part of your overall well-being. The 401(k) Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.
Key Advantages at a Glance
Current tax savings.
You’ll pay less in income taxes when you make pre-tax contributions.
Tax-deferred investment growth.
With pre-tax contributions, your money has the potential to grow faster.
Wide range of investment choices.
Choose how you want to invest your money.
Convenient payroll deductions.
The 401(k) Plan makes it easy to save for your future.
Matching contribution from Conga.
The company will match 100% of your first 3% of contributions, to a maximum of $4,000.
You’re immediately eligible to enroll after receiving your first paycheck.
If you don’t take any enrollment action — either enrolling yourself or opting out — within 30 days of becoming eligible, you’ll be automatically enrolled at 4% of your eligible pre-tax pay. Your contributions will be invested in an age-appropriate target date fund. You may change your contribution rate and investment elections at any time by visiting Fidelity or calling 800-354-7120.
There are three types of contributions you can make to the plan: pre-tax, Roth after-tax contributions, and after-tax contributions.
| Pre-tax contributions | Roth contributions | After-tax contributions |
|---|---|---|
| Contributions are made on a pre-tax basis. Pre-tax contributions and any earnings grow tax-free until you start making withdrawals, at which point the withdrawal will be fully taxable. | Contributions are made on a post-tax basis. Roth after-tax contributions and any earnings grow tax-free. Upon withdrawal, you won’t pay income tax on contributions or earnings, provided you have reached age 591/2 and you made your Roth after-tax contribution at least five years prior to the withdrawal. | Contributions are made to your account post-tax. Contributions and earnings grow tax-free. You won’t owe taxes on a withdrawal of your traditional after-tax contributions. However, you will owe income taxes on any earnings at the time of your withdrawal, unless you choose to convert your after-tax contributions to Roth contributions. |
You may contribute between 1% and 90% of your eligible pay to your plan account, up to annual IRS limits. In 2024, the IRS limits allow you to contribute up to:
- $22,500 if you are under age 50
- $30,000 if you’re age 50 or older this year (which includes an additional $7,500 in catch-up contributions, made as a separate dollar amount election).
These limits include your pre-tax contributions, Roth contributions, or a combination of both. If you worked for a different employer prior to joining Conga this year, the IRS maximum applies for the total year and not per employer. Please contact payroll to provide your year-to-date contribution, so you don’t exceed the annual maximum.
Try to contribute at least 3% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to Fidelity to increase your contribution rate.
Note: After-tax contributions allow you to save above and beyond the IRS pre-tax and Roth contribution limits.
Pre-tax vs. Roth after-tax: What’s the difference?
The 401(k) 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.
Before-tax contributions
The money goes into your account before taxes are deducted, so you keep more of your take-home pay.
Then, 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).
Roth after-tax contributions
The money goes into your account after taxes are withheld. Then, both your contributions and any associated earnings can be withdrawn tax-free in retirement.*
*In order for Roth earnings to be withdrawn tax-free, you must meet these two requirements:
- At least five years have elapsed since your first Roth contribution.
- You are at least 59½ or the withdrawal follows death or total disability
Catch up!
If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.
The company will match 100% of your first 3% of contributions, to a maximum of $4,000 per year. You must be deferring at least 3% to receive the maximum match. You’re immediately 100% vested in the company match.
It’s important to designate a beneficiary for the 401(k) plan. As personal circumstances change, be sure to keep that information up to date. Visit Fidelity to add or change a beneficiary.
Please note: Your beneficiary for life insurance purposes doesn’t carry over into the 401(k) Plan. You must go into Fidelity to establish your 401(k) 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. You can take a loan of up to 50% of account balance, to $50,000 maximum.
There are rules around withdrawals and loans. For more information, visit Fidelity or call 800-354-7120.
Consider the Impact
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).
Find answers to frequently asked questions about the 401(k) Plan.