McClatchy 401(k)

Administed by Vanguard, McClatchy's 401(k) plan allows you to plan for your future by saving a portion of each paycheck today for retirement.

To help with your retirement endeavors McClatchy matches 1/3 of the first 6% of eligible contributions you make to the plan, up to the applicable annual match limit. Employees are eligible to participate in the plan after 6 months of service and 375 worked hours.

Contribution Basics

The big difference among pre-tax, Roth and traditional after-tax contributions is how they’re taxed, both today and in retirement. Please see the chart below for information on these three types of elective contributions:

*A distribution or withdrawal of Roth earnings is usually taxable unless, at the time of distribution or withdrawal, the initial Roth contribution has been in the Plan for more than 5 years and you are at least age 59 ½. Early withdrawals also may be subject to a 10% federal penalty tax.

Pre-tax Contributions

Pre-tax contributions to your 401(k) lower your taxable income now, so you avoid taxes today. But you won't avoid taxes forever. When you decide to take the funds out of your account, you'll owe ordinary income taxes on your contributions and any investment earnings. Withdraws made before age 59 1/2 may be subject to a 10% federal penalty tax.

The company will match 1/3 of the first 6% of pre-tax contributions you make to the plan, up to the applicable annual match limit.

Roth After-tax Contributions

One of the advantages to a Roth after-tax account is that if you wait to withdraw funds at least five years from the date you made the contributions, and you are at least age 59 1/2, your contributions and qualified earnings* will not be subject to income taxes.

Another benefit to having a Roth after-tax account is that unlike traditional after-tax accounts, the company will match your Roth after-tax contributions. This means the company match of 1/3 of the first 6% of contributions you make will be based off of the aggregate contributions you make into both your Roth after-tax and pre-tax accounts, up to the applicable annual match limit.

*A distribution or withdrawal of Roth earnings is usually taxable unless, at the time of distribution or withdrawal, the initial Roth contribution has been in the Plan for more than 5 years and you are at least age 59 ½. Early withdrawals also may be subject to a 10% federal penalty tax.

Traditional After-tax Contributions

Traditional after-tax contributions do not lower your taxable income, so you pay taxes today. If and when you take the funds out you won't be subjected to income taxes on your contributions earning but you will be on any earnings.

You may only want to consider this type of contribution only after you have made full use of the pre-tax option.

401(k) FAQ

Contacts

  • Vanguard Website
  • Vanguard Phone: 800-523-1188 (Plan Number: 098630)
  • Vanguard Personal Assistance: 800-523-1188
  • McClatchy E-mail: livewell@mcclatchy.com
  • McClatchy Phone: 866-334-2337
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