Page 21 - 2020 Stein Mart Benefit Guide SM
P. 21
401(k) RETIREMENT SAVINGS PLAN
Financial Security
Planning for financial security is important for you and your family. To help you prepare for the future, Stein
Mart sponsors a 401(k)Â Retirement Savings Plan through Prudential Financial.
Eligibility
Full time associates are eligible the first of the month after 60 days of hire.
If you are promoted from part-time to full-time, the eligibility rule follows your date of hire, not your
promotion. Therefore, if you were promoted after 60 days of being hired, you are immediately eligible.
Two Ways to Save
Stein Mart's retirement plan offers two options for contributions. Consider finding out now which kind of
retirement saving strategy makes the most sense for you; Traditional, Roth or a combination of both.
Traditional 401(k) - pre-tax contributions
Your contributions come out of your pay before taxes are deducted, so you save on your taxes now.
Roth 401(k) - after tax contributions
Your contributions come out of your pay after taxes have been withheld. Your take-home pay is
reduced by the amount you contribute, but your contributions are never taxed again.
Key Features Traditional Contributions Roth Contributions
Contribution dollars are: Pre-tax After-tax
Account can grow tax-deferred Yes Yes
Federal tax-free withdrawals No Contributions always
Earning must qualify
Eligible for company match Yes Yes
Available for loans Yes Yes
In-service withdrawals Yes
Yes
May be best if: You expect your tax bracket to You expect your tax bracket to
be higher when you withdraw
be lower when you withdraw than when you contribute
then when you contribute
Plan contributions are deduction from your paycheck each pay period. To learn more about Traditional vs.
Roth, please visit www.preparewithpru.com.
Automatic Enrollment and Annual Automatic Increase
If you take no action once eligible, you will automatically be enrolled into Stein Mart’s 401(k) retirement plan
at a 3% tax-deferred contribution.
In addition, each June, your 401(k) contributions will be automatically increased by 1% (except for those
contributing 10% or more.) This annual, tax-deferred contribution increase has a small effect on your net pay
as compared to its long-term savings benefits.
If you do not wish to enroll and/or participate in the automatic annual increase, please contact Prudential
directly. This must be done after you meet eligibility and before your automatic enrollment date.
Assistant Store Managers, Asset Protection and Loss 19
Prevention and Semi-Monthly Associates For 2020 Benefits
Financial Security
Planning for financial security is important for you and your family. To help you prepare for the future, Stein
Mart sponsors a 401(k)Â Retirement Savings Plan through Prudential Financial.
Eligibility
Full time associates are eligible the first of the month after 60 days of hire.
If you are promoted from part-time to full-time, the eligibility rule follows your date of hire, not your
promotion. Therefore, if you were promoted after 60 days of being hired, you are immediately eligible.
Two Ways to Save
Stein Mart's retirement plan offers two options for contributions. Consider finding out now which kind of
retirement saving strategy makes the most sense for you; Traditional, Roth or a combination of both.
Traditional 401(k) - pre-tax contributions
Your contributions come out of your pay before taxes are deducted, so you save on your taxes now.
Roth 401(k) - after tax contributions
Your contributions come out of your pay after taxes have been withheld. Your take-home pay is
reduced by the amount you contribute, but your contributions are never taxed again.
Key Features Traditional Contributions Roth Contributions
Contribution dollars are: Pre-tax After-tax
Account can grow tax-deferred Yes Yes
Federal tax-free withdrawals No Contributions always
Earning must qualify
Eligible for company match Yes Yes
Available for loans Yes Yes
In-service withdrawals Yes
Yes
May be best if: You expect your tax bracket to You expect your tax bracket to
be higher when you withdraw
be lower when you withdraw than when you contribute
then when you contribute
Plan contributions are deduction from your paycheck each pay period. To learn more about Traditional vs.
Roth, please visit www.preparewithpru.com.
Automatic Enrollment and Annual Automatic Increase
If you take no action once eligible, you will automatically be enrolled into Stein Mart’s 401(k) retirement plan
at a 3% tax-deferred contribution.
In addition, each June, your 401(k) contributions will be automatically increased by 1% (except for those
contributing 10% or more.) This annual, tax-deferred contribution increase has a small effect on your net pay
as compared to its long-term savings benefits.
If you do not wish to enroll and/or participate in the automatic annual increase, please contact Prudential
directly. This must be done after you meet eligibility and before your automatic enrollment date.
Assistant Store Managers, Asset Protection and Loss 19
Prevention and Semi-Monthly Associates For 2020 Benefits
