401(k) Savings Plan
Make the most of your savings by contributing to the 401(k) Savings Plan to build for the future. Choose whether to have your contributions withheld from your paycheck before taxes and reduce your current taxable income or contribute after-tax money with Roth contributions. Pretax contributions allow your money to grow tax-deferred, while Roth contributions provide the opportunity for tax-free withdrawals in retirement, provided certain requirements are met. Take advantage of company contributions to grow your account.
Eligibility
All Watts employees are eligible to participate in the plan the first day of the month following three months of employment.
Getting Started
Register on the Fidelity website at 401k.com any time after your first week of employment. You may elect your contribution rate and set up your investment elections 60 days prior to the effective date of your enrollment. If you’re newly eligible, you’ll receive a communication from Fidelity one month prior to the effective date of your enrollment informing you of your eligibility to enroll in the plan. You can contribute up to the IRS contribution limit for the calendar year. If you’re age 50 or older, you can make additional “catch-up contributions” up to the IRS limit, currently $7,500. Choose whether to make pretax contributions, after-tax Roth contributions, or a combination of the two.
Company Contributions
- Company match rewards – Watts will contribute $1.00 to your retirement account for every dollar you contribute, up to the first 4% of your pay.
- Additional company contributions equaling 2% of your pay – you’re awarded this even if you don’t make your own contributions to the plan.
- You’re 100% vested in company contributions – this means that when you leave Watts you can take all of the company’s contributions and the earnings on those contributions with you.
Managing Your Account
Once you’ve registered online and enrolled in the plan, you can view and manage your account on Fidelity’s website. You can change your contribution rate and investment choices, make transfers and much more. Be sure to take advantage of the informative articles and other tools that can help you make important choices with regards to your finances.
Naming Your Beneficiary
Naming beneficiaries and keeping your beneficiary information current helps ensure your retirement benefits will be distributed according to your wishes upon your death. If you’re married and wish to name someone other than your spouse as a beneficiary, federal law requires that your spouse provide written, notarized consent.
To navigate to your beneficiary designations online:
- Log on to the Fidelity website at 401k.com
- Click the Your Profile link.
- Select Beneficiaries and follow the online instructions.
Please be sure to review your choices regularly and update them after certain life events, such as a marriage, divorce, birth of a child, or a death in the family.
Rollover Contributions
You may make a tax-deferred rollover contribution at any time, even if you have not yet satisfied the eligibility requirements to enroll in the plan. For more information, contact Fidelity at 800-835-5097 or access the Rollovers page of your Watts 401k account after logging in to 401k.com.
