McClatchy 401(k)
Administered 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 contact Vanguard for assistance, call 800-523-1188 (Plan Number: 098630).
Plan Overview
- Plan Quick Guide
- Plan Highlights
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:
[wp_table id=3734/]
*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
Every employee who is eligible for the 401(k) Plan is also eligible for the company match. In general, if you have worked for McClatchy for six months and worked at least 375 hours during a six-month period, then you are eligible to participate in the 401(k). You can also contact Vanguard or 401k@mcclatchy.com to verify your eligibility.
Our 401(k) program is managed by Vanguard. Once you become eligible for the McClatchy 401(k) Plan, Vanguard will automatically create an account for you. For those who already have a Vanguard 401(k) account, you can enroll by accessing your account online or by calling Vanguard at 800-523-1188. If this is your first time accessing your account, you will need to know the plan number: 098630.
The company matches 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. See below for examples:
| Example 1 | Example 2 | |
| Eligible Earnings | $1,000 | $1,000 |
| Pre-Tax Contribution % | 3% | 6% |
| Pre-Tax Contribution $ | $30 ($1,000 x 3%) | $60 ($1,000 x 6%) |
| Company Match | $10 ($30 x 1/3) | $20 ($60 x 1/3) |
You can maximize your company match by contributing at least 6% of your eligible earnings. If you contribute more than 6%, the company will only match the first 6% of your contributions.
Under the 401(k) plan rules, eligible earnings generally include your regular wages, sick or vacation pay, and sales commissions. Other types of compensation such as overtime, bonuses or shift-differentials are not considered eligible earnings.
The company match amount will be reflected on your payroll advice each pay period. You can also see an accounting of your matching contributions online at www.vanguard.com.
Vesting refers to non-forfeitable ownership of the money in your account. You are always 100% vested in your own contributions to the 401(k). Generally, you are 100% vested in the company matching contributions after having earned three vesting years since your hire date. You earn one vesting year for each calendar year that you work at least 750 hours. If you do not have three years of vesting service, then you are 0% vested in the company matching contributions.
There are different vesting rules for individuals who were participants in the McClatchy or Knight Ridder 401(k) Plan before the two plans merged in 2009. Generally speaking, if you have been a full-time employee since 2009, then you are likely 100% vested.
You can verify whether you are vested by accessing your Vanguard account at www.vanguard.com.
If you terminate employment and you are 100% vested, then you keep any employer matching contributions in your account. If you terminate employment and you are 0% vested, then you forfeit all company contributions upon termination.
No, the match only applies to the first 6% of your pre-tax or Roth contributions.
You can change your contribution percentage as often as each pay period. Visit www.vanguard.com or call Vanguard at 800-523-1188 to make changes to your account. You must make any changes by Thursday of the week prior to payday.
You will receive the company match each time you receive a paycheck and make a pre-tax or Roth contribution to the 401(k). The match amount will be listed on your paycheck advice and will typically be deposited into your account at Vanguard the following calendar week.
Your company matching contributions will be invested in the same way (i.e. allocated to the same mutual funds) as your own contributions are invested. You can change your allocations in your online account or by contacting Vanguard.
No, you are not taxed on company matching contributions at the time they are made. Similar to other pre-tax contributions, you will be taxed on any matching contributions when you withdraw the funds from your 401(k).
We are hopeful that the company will be able to increase the match percentage at a later date, but feel this is a great step in the right direction, and we are committed to increasing the match percent as the company’s financial position further improves.
If eligible for the 401(k), you may contribute a combined total of 50% of your eligible earnings into a pre-tax and/or after-tax account, subject to IRS limits.
The contribution limit is decided by IRS and can be found here.
There is a $2,000 maximum match cap per employee per year. This new limit will not reduce matching contributions for any participant making $100,000 or less per year.
Moving after-tax money to Roth would be considered an in-plan Roth conversion which is currently not allowed in the plan.
Vanguard's Language Services
Servicios lingüísticos | Lus pab
Dịch vụ ngôn ngữ | 语言服务
800-523-1188