Watch this brief video for an overview of the benefits of saving through the 401(k) Retirement Plan.
Eligible employees can enroll in the plan, make payroll deferral changes and change investment elections at anytime by contacting Fidelity directly at www.401k.com or (800) 835-5097. Note that enrollment and any changes take up to two (2) payroll periods to be processed.
Traditional 401(k) and Roth 401(k)
Genesys employees may elect to contribute pretax (Traditional) or post-tax (Roth) earnings to the Genesys Retirement Savings Plan. The maximum employee contribution is 60% of eligible earnings on a pretax basis not to exceed $19,500 for 2020, and 35% of annual earnings on an after-tax basis. You can split your annual elective deferrals between designated Roth contributions and traditional pre-tax contributions, but your combined contributions can’t exceed the deferral limit. Employees age 50 or older may also contribute an additional “catch-up” amount of $6,500 for 2020.
The After-tax contribution is not eligible for the employer match, so participants should first take advantage of the Traditional and/or Roth options to the annual limit in order to be eligible for the maximum employer match. The after-tax contribution limit is an additional $33,500 in 2020. Aftertax contributions are limited to 35% of earnings.
Note: The 2021 limits have not yet been announced by the IRS. Genesys will follow the 2021 IRS limit.
Employer Matching Contribution
The employer 401(k) match is another way that Genesys — much like its effort to offer HDHPs and HSAs — is helping you save for your future. The match is calculated every pay period and provides an employer match of $.50 for every $1.00 you contribute. The maximum matching contribution is $4,000 annually. Matched funds will vest after one year of service.
Genesys is continuously monitoring the performance of the investment funds we offer. The standard investment lineup can be accessed at www.401k.com.
In addition, 401(k) participants can choose to participate in Fidelity BrokerageLink, which offers you the flexibility to select from numerous other investment options. The option enables you to create a customized retirement portfolio to match your personal situation, including your goals, time horizon and risk tolerance. Note, however, that if you’re not up for actively managing your account, it may not be right for you.