Contributing to the Rockwell Automation Savings Plan—the 401(k) plan—through Fidelity is a great way to jump-start your savings for retirement. There are several options available to save for your future. Explore the three options below to find the right saving strategy for you.
Three Ways to Save
When you contribute to the 401(k) plan, you’ll either pay taxes on the money going into your account now or when you withdraw the money in the future. Learn more about your three 401(k) contribution options in the chart below.
|Pre-tax||Roth after-tax||Regular after-tax|
|Contributions||Made with pre-tax dollars (money not taxed today)||Made with after-tax dollars (money is taxed today)||Made with after-tax dollars (money is taxed today)|
|2021 contribution limits||For 2021, the combined annual contribution limit for pre-tax and Roth
contributions is $19,500.1
|$19,500 limit does not apply|
|2021 catch-up contributions (age 50 & older in 2021)||For 2021, the combined catch-up contribution limit for pre-tax and Roth
contributions is $6,500.1
|Distributions||You’ll owe taxes (including on any investment earnings)||Tax-free (including any investment earnings2)||Tax-free, but you owe taxes on any investment earnings|
1 These annual limits apply to your Rockwell Automation 401(k) plan contributions and any contributions you made to another employer’s 401(k) plan in 2021.
2 Generally, you must have first made Roth contributions under the Retirement Savings Plan at least five years prior to the date you take a distribution and be over age 591/2 for earnings to be distributed tax-free. Consult a tax professional for more information.
Rockwell Automation Matching Contributions
Rockwell Automation will match 50% of each pre-tax, Roth and regular after-tax dollar you contribute to the 401(k) plan, up to the first 7% of pay you defer to your account each pay period. Company matching contributions, including any investment earnings, are taxed when distributed. Catch-up contributions are not eligible for the Company match. The IRS limits the amount you and Rockwell Automation can contribute in 2021 to $58,000 ($64,500 if age 50 or older).
Saving More With Regular After-Tax Contributions
If you max out your pre-tax and Roth contributions at the 2021 IRS limit of $19,500, you can continue to save above this limit and receive the Company match by electing the spillover. The spillover allows you to keep saving with regular after-tax contributions to the end of the year to get the full Company match (unless you decide to opt out) up to the 2021 IRS limit of $58,000.
Your Saving & Investment Strategy
A saving and investment strategy is dependent on your own financial situation and what stage of life you are in. Edelman Financial Engines through Fidelity provides you with choices for unbiased investment advice (they do not sell investments).
- Online Advice: You have free access to professional-grade online planning tools to manage your 401(k) account yourself. Edelman Financial Engines will make suggestions for an effective portfolio, and you can choose whether or not to implement them.
- Professional Management: For a fee, experts can monitor your 401(k) investments for you and allocate funds into your portfolio as they see fit.
Both services can be accessed at 401k.com and count as Take Action activities under the Rockwell Automation Health Management program.
Call the Rockwell Automation Service Center at Fidelity at 1.877.ROK.401K (1.877.765.4015) or visit 401k.com.