In order to retire, you’ll need a source of income after you’re no longer working. To help you build a more secure future, the Company sponsors the Mohawk Carpet Corporation Retirement Savings Plan, a 401(k) plan and utilizes Fidelity Investments as the administrator.
The benefits of contributing to your retirement savings through the Retirement Savings Plan include:
Your contributions are made before income taxes are withheld from your paycheck, so you do not pay federal income tax (and, in most locations, state and local taxes) on the money you contribute. And you don’t pay taxes on the money in your account until you take a distribution from the plan.
Mohawk Contributes to Your Savings
The Company helps you build up your savings by matching the funds you contribute to your account. Mohawk will match 50% of the first 6% of your wages that you contribute. The sooner you take advantage of the Retirement Savings Plan, the more you benefit from the company’s contributions. If you are contributing less than 6%, you will not receive the full company match. You can call Fidelity at 1-800-835-5087 or log on at www.401k.com to change your contribution percentage or to enroll in the plan. In a time where most employers are eliminating their company match entirely, Mohawk is pleased to be able to reward your hard work.
Enroll in Your Plan today for Long-term Savings
Your Money Goes With You
100% of the money you put into your 401(k) account is yours to take if you leave Mohawk. After one year of participation in the plan, 100% of the funds contributed by Mohawk are also yours to take if you leave. In financial terms, this means you are 100% vested in your personal contributions immediately and 100% vested in Mohawk’s contributions after one year.
How to Start Saving For Retirement
You are automatically enrolled in the Retirement Savings Plan on the first day of the month following 90 days of employment. This Plan automatically enrolls you – as a new hire - at 3% of your pay through automatic payroll deduction from each paycheck on a pre-tax basis. Your money will be initially invested in the Fidelity Freedom Fund based on your age and targeted year of retirement, but you may call Fidelity to change your fund allocation or your contribution amount at any time after enrollment. Financial advisors say that you will need at least 70% to 80% of your pre-retirement income to retire. It’s smart to start saving early. Remember, the money you save is yours.
Your Investment Choices
You choose how the money in your account will be invested among several investment options in the plan. The investment options you select depend on the level of risk you are willing to take and your overall investment goals. Specific fund information is available from Fidelity via Web site: www.401k.com, or by calling Customer Service at: 800-835-5087.
If you do not make specific investment elections following your enrollment in the plan, your contributions will continue to be invested entirely in a default fund as established by the Plan.
Note: The investment experience of the funds you select will directly affect your account balance. As structured, the plan is intended to comply with the requirements of Section 404(c) of the Employee Retirement Income Security Act and any applicable regulations there under. The fiduciaries of the plan may not be liable for investment losses that are a direct result of the instructions given by you.
Effective September, 2013 - Changes to the Retirement Savings Plan I and Plan II
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Your Before-Tax Savings
You may contribute between 1% and 50% of your earnings into the plan each year, up to the maximum amount permitted by the Internal Revenue Service. If you are age 50 or older, you can make an additional “catch-up contribution.” All “catch-up contributions” are not eligible for employer matching of funds. You choose the amount you want to contribute based on what you can afford and your long-term goals.
When you save in the plan, your contributions are made through convenient payroll deductions before income taxes are withheld. This means that you do not pay federal income taxes (and, in most locations, state and local taxes) on the amount of your savings.
Limits on Contribution
The plans must pass certain IRS tests to ensure that the plan is fair to both highly compensated and lower-paid employees. In the event the plan does not pass these tests, your savings may be limited or a portion may be returned to you. Limitations or returns of excess savings generally only affect highly compensated employees. You will be informed if these restrictions apply to you.
Accessing Your Plan Account
You can access your 401(k) account various ways. The easiest way is to go to the Web site: www.401k.com, and establish your PIN. This will allow you to be able to access your account 24x7 – and have the flexibility with your account that you may need or want. You are able to customize your account according to your needs. You can also manage your account from your phone by:
• Transferring current account balances from one fund to another
• Changing how future contributions will be invested
• Changing your contribution percentage
• Stopping contributions to the plan
Remember, your savings is yours to take with you, anywhere and anytime. If you need your money, you may be able to borrow from or take money out of your account.
You should designate a beneficiary (or beneficiaries) for your 401(k) account. In order to designate a beneficiary, you must access your account via the Web site or contact Fidelity at (800) 835-5087 and request a beneficiary form.
Filing a Survivor's Claim
Fidelity now offers Survivor Services, a new resource to make it easier for your beneficiaries to file a claim on your 401(k) Retirement Savings Plan. Instead of filling out a paper claim form, your beneficiary simply needs to call Fidelity toll free at 1-800-835-5087 (para Asistencia al cliente en español, al 1-800-587-5282).
Qualified Domestic Relations Orders (QDROs)
If you have any questions about QDROs related to the 401(k) Plan, please call Customer Service at 1-800-835-5087, or visit the Fidelity QDRO Center website.
Summary Plan Description
For questions about the 401(k) Retirement Savings Plan,contactFidelity.
Phone: 1-800-587-5282 - español