RETIREMENT 401(K)
401(k) Savings Plan
Saving for retirement is about creating the future you want and will ensure that you have enough money to enjoy a comfortable standard of living when you stop or reduce the number of hours you work. The Veritext 401(k) retirement plan is designed to help you prepare for retirement and attain your financial goals.
401(k) Benefits
Enrollment & Eligibility
Eligible Veritext employees at least 21 years of age are automatically enrolled in and eligible to participate in the 401(k) retirement plan on the first day of the month following 30 days employment.
Automatic Deferrals and Automatic Increase
You will be automatically enrolled in the 401(k) retirement plan at 8% unless you voluntarily elect to opt out or change your salary deferral percentage. You salary deferral percentage will increase by 1% each year, effective each January 1, until your deferral percentage reaches a maximum of 12%.
Beneficiary Designation
An important aspect of estate planning is making beneficiary designations and keeping them up to date after life changes. Designating a beneficiary ensures your retirement savings will go where you want if the unthinkable should happen to you. It’s quick and easy to assign or update your beneficiary designation from within your account dashboard. You will need to provide the name and Social Security number of each beneficiary.
Pre-Tax 401(k) Contributions
Pre-tax contributions allow you to reduce your current taxable income. In addition, any earnings on your contributions are also tax-deferred. Any contributions and earnings are fully taxable as ordinary income when you withdraw them.
Roth 401(k) Contributions
You make Roth 401(k) contributions with after-tax money, so you see no immediate tax benefit. Any earnings from those contributions are tax-free when you take a qualified distribution.
2025 401(k) Plan Details
- Your contributions (pre-tax and/or Roth) are limited to the IRS maximums for 2025 ($23,500). if you are under age 50.
- Individuals above the age of 50 are also eligible to contribute an additional $7,500 in the form of catch-up contributions.
- Veritext matches 25% of the first 10% of an employee’s contribution.
