The Rockwell Automation Retirement Savings Plan (the 401(k) plan) and Health Savings Account (HSA) offer tax-advantaged savings to cover your expenses during retirement. It’s a good idea to evaluate your retirement savings goals and how you plan to meet them.
The Savings Plan (401(k))
You have three 401(k) contribution options: pre-tax, Roth 401(k) after-tax and regular after-tax. Pre-tax contributions reduce your current taxable income. The type of contributions you make to your Retirement Savings Plan account determines what gets taxed when you receive the money.
Rockwell Automation contributes $0.50 for every $1.00 you contribute, up to the first 7% of pay you contribute each paycheck. To take full advantage of this Company match, you should contribute at least 7%. After three years of service at Rockwell Automation, you own (are vested in) 100% of the Company contributions.
For help increasing your contributions or if you have questions, call the Rockwell Automation Service Center at Fidelity at 1.877.ROK.401K (1.877.765.4015) or visit 401k.com.
Health Savings Account (HSA)
If you enrolled in the HSA medical option, you have an HSA administered by HealthEquity. It’s triple-tax-advantaged, which means you don’t pay taxes when you contribute, when you use it for eligible expenses, or on interest or investment earnings.
You can use your HSA as a retirement savings vehicle. After you contribute 7% of your pay to your 401(k) to get the full Company match (and not miss out on free money), you should consider contributing as much as possible to your HSA, up to the annual limit. You can find the annual limits on page 12 of the 2019 Enrollment Guide. (Remember, you can change your contribution amount at any time during the year.)
You can use your HSA funds tax-free for eligible health care expenses incurred this year, or use them to reimburse yourself tax-free for expenses incurred in a prior year (as long it was after the HSA was established). This money is 100% yours, so if you don’t use the funds now, they’ll continue to grow and can be used tax free for eligible retiree health care expenses down the road.
For questions, call HealthEquity at 1.866.346.5800, 24/7. Or, visit healthequity.com/ed/rockwell.