The Mercury 401(k) Plan makes it simple and rewarding to save for your future.

 

Overview

Taking steps to ensure your current and future financial security is an important part of your overall well-being. The Mercury 401(k) Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.

Key advantages at a glance
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  • Company match. For every dollar you contribute, Mercury will add an additional dollar up to the first 1% of your pay, and $0.50 for each dollar you contribute from 2% to 6% of your pay.
  • Current tax savings. You’ll pay less in income taxes when you make pre-tax contributions.
  • Option to make Roth post-tax contributions. You pay taxes now, and won’t when you withdraw funds in retirement.
  • Tax-deferred investment growth. With pre-tax contributions, your money has the potential to grow faster.
  • Wide range of investment choices. Choose how you want to invest your money.
  • Convenient payroll deductions. The Mercury 401(k) Plan makes it easy to save for your future.

Eligibility and enrollment

You are eligible to participate on the 1st day of the month following 60 days of hire. If you don’t take any enrollment action — either enrolling yourself or opting out — within [60 days] of becoming eligible, you will be automatically enrolled, and 6% of your eligible pre-tax pay will be invested in the SSgA Target Retirement Non-Lending Series Fund Class D. You may change your contribution rate and investment elections at any time by visiting Fidelity or calling 800-835-5095.

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Enroll in the plan

Get started by visiting Fidelity to view plan details and access forms and documents.

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Check your progress

Log in to your Fidelity account to see your balance and use planning tools and calculators.

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Make updates

Easily change your contribution rate, investment selections, or beneficiary on Fidelity.

 

Your Contributions

You may contribute between 1% and 50% of your eligible pay to your plan account, up to annual IRS limits. In 2020, the IRS limits allow you to contribute up to:

  • $19,500 if you are under age 50
  • $26,000 if you’re age 50 or older this year (which includes an additional $6,500 in catch-up contributions, made as a separate dollar amount election).

Your contributions are made on a pre-tax basis, which lowers your current taxable income and tax bill.

These limits include your pre-tax contributions, Roth post-tax contributions, or a combination of both.

Pre-tax vs. Roth post-tax: What’s the difference?

The Mercury 401(k) Plan gives you the flexibility to save for retirement in a variety of ways. You can make pre-tax contributions, Roth post-tax contributions, or a combination of the two.

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Pre-tax contributions

The money goes into your account before taxes are deducted, so you keep more of your take-home pay. Then, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).

Roth post-tax contributions

The money goes into your account after taxes are withheld. Then, both your contributions and any associated earnings can be withdrawn tax-free in retirement.*

*In order for Roth earnings to be withdrawn tax-free, you must meet these two requirements:

  • At least five years have elapsed since your first Roth contribution.
  • You are at least 59½ or the withdrawal follows death or total disability.
Catch up!

It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $6,500 in catch-up contributions.

 

Company Contributions

To help you reach your retirement planning goals, Mercury will also contribute to your account!

Company matching contributions

Mercury matches 100% of your pre-tax and Roth post-tax contributions to the plan up to 1% of your eligible pay and 50% of additional contributions up to 6% of your eligible pay, to support your retirement saving efforts.

Here’s how the company match works:

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Meet the match!

Try to contribute at least 6% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to your Fidelity account to increase your contribution rate.

 

Vesting

Vesting is another way of saying “how much of the money is yours to keep if you leave the company.”

You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in company contributions over time, based on the following schedule:

Your years of service Your vested percentage
Less than 1 0%
1 but less than 2 0%
2+ 100%
 

Name a Beneficiary

It’s important to designate a beneficiary to receive the value of your Mercury 401(k) Plan account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit Fidelity to add or change a beneficiary.

 

Withdrawals and Loans

The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit Fidelity or call 800-835-5095.

Think before you act

If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your financial future.

  • Taking money from your account now may lead to a smaller savings balance when you retire.
  • Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it even harder to get back on track.
  • If you take a plan loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.
  • If you withdraw pre-tax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left the company).