401(k) Plan
The Stimson 401(k) plan is an important source of retirement income. It’s one of the most effective ways to save for your future. The plan is administered by Fidelity.

How It Works

The 401(k) plan makes it easy and convenient for you to plan and save for your financial future. It includes:

  • Automatic enrollment. An account will be established on your behalf and 4% of your base pay will be deducted, pre-tax, unless you opt out.
  • Convenient payroll deductions.
  • Tax savings through pre-tax contributions.
  • Stimson matching contribution.
  • Annual profit sharing contribution, if applicable.
  • A mix of investment options, including “target date retirement funds”.

Designate a Beneficiary

Your beneficiary is the person who will receive your account in the event of death. Designate, review or update your beneficiary on Fidelity NetBenefits. Select “Profile,” then “Beneficiaries” and follow the instructions. Or call the Fidelity Service Center at 800-835-5097.

Eligibility

You are eligible to participate in the 401(k) plan on the first day of the month following your hire date, unless:

  • You are a leased employee.
  • You are eligible to participate in another 401(k) plan.
  • You are not treated as a common law employee by Stimson.

At-A-Glance

Here’s a quick look at the Stimson 401(k) plan. For details, review the 401(k) Plan Summary Plan Description.

How to Enroll

Auto enrollment: You will be automatically enrolled in the 401(k) plan if you don’t enroll within 30 days of your eligibility. This means:

  • 4% of your eligible compensation will be deducted from your paycheck and deposited into your 401(k) plan account on a pre-tax basis, unless you change the contribution or opt out.
  • Your contribution will begin with the first paycheck after enrollment.
  • Stimson will make a matching contribution equal to 100% of your contribution, up to 6% of your eligible compensation.
  • Both your contribution and Stimson’s are invested in the Vanguard Target Retirement Fund that most closely matches your expected retirement year (assuming retirement at age 65) unless you change your investment fund election.

You may enroll, stop or change your contribution amount and investment options at any time. Log on to Fidelity NetBenefits or call the Fidelity Service Center at 800-835-5097.

Automatic Increases
  • Your contribution rate will automatically increase each April by 1%, up to 10% unless you make a change to your contribution (increase, decrease or stop).
  • If you are automatically enrolled between January 1 and March 31, your 1% annual increase will not begin until April of the following year.
  • Make changes to your contribution rate at any time. Log on to Fidelity NetBenefits.
Your Contributions

Contribute up to 50% of your eligible compensation on a pre-tax basis.

  • In 2022, the maximum dollar amount you can contribute is $20,500.

If you are age 50 or older during 2022, you are eligible to make “catch up” contributions up to 100% of your eligible compensation on a pre-tax basis.

  • In 2022, the maximum “catch up” dollar amount you can contribute is $6,500, for a total contribution of $27,000 (regular employee contribution plus “catch up” contribution).

Enroll or change your contribution at any time. Log on to Fidelity NetBenefits. Changes you make to your contribution percent (increase, decrease or stop) take effect as soon as administratively feasible.

Stimson’s Contributions

Matching contribution. Stimson automatically matches 100% of the first 6% of eligible compensation you contribute. You will be eligible to receive the match beginning the first pay period after you enroll.

Annual profit sharing contribution. If you have completed 1,000 hours of service and are employed by Stimson on the last day of the plan year, you may be eligible to receive a profit sharing contribution. The profit sharing contribution is discretionary and will be made the following plan year, if applicable.

Vesting (Ownership)

Your contributions. You are always 100% vested in your contributions and Stimson’s matching contributions.

Profit sharing contributions vest as follows:

Years of Service Vested Percentage
Less than 2 years 0%
2 years 20%
3 years 40%
4 years 60%
5 years 80%
6 years 100%
Loans and Withdrawals

Loans. You may take out one loan per year, but you may only have one loan outstanding at a time. You may borrow up to 50% of your vested account balance up to certain limitations. Loan repayments must be made at least quarterly on an after-tax basis. Loans must be paid off within 5 years unless the loan is for the purchase of a primary residence. If you’re interested in taking out a loan, or want to pay off a loan, call the Fidelity Service Center at 800-835-5097. For loan details, review the 401(k) Plan Loan Policy.

Withdrawals. Hardship withdrawals are available, subject to plan restrictions. Your entire account balance remains tax-deferred until you request a distribution. You (or your designated beneficiary, in the event of your death) may request a distribution of your vested balance when you leave Stimson or reach age 59½.

Rollovers The 401(k) plan accepts taxable rollovers from other employers’ qualified plans. If you’re interested in rolling over any accounts you have from a prior employer, call the Fidelity Service Center at 800-835-5097.
Saver’s Tax Credit If you earn up to $34,000 in 2022 ($51,000 for heads of household and $68,000 if married, filing jointly), you might be eligible for a tax credit. The credit rate is 10% to 50% of each dollar you contribute to the 401(k) plan on a pre-tax basis, up to the first $2,000 you put into the plan.
KEY TERM

Eligible Compensation

Taxable compensation reportable on your IRS Form W-2, excluding reimbursements or other expense allowances, fringe benefits, moving expenses, deferred compensation, unused leave, and welfare benefits.

KEY TERM

Leased Employee

Any person who, under an agreement between Stimson (or an affiliate) and a leasing organization, has performed services for Stimson (or an affiliate) on a substantially full-time basis and under the primary direction or control of Stimson (or an affiliate).

Manage Your Account

Check your balance, change your investment direction, review investment performance and more at Fidelity NetBenefits. Or call the Fidelity Service Center at 800-835-5097.