Retirement planning can be difficult, especially if you’re not aware how the 401(k) plan of your employment really performs. Many Dollar Tree employees may overlook company matching, tax benefits, or wise investment options that could increase their savings as they do not completely comprehend what is offered. This lack of information can drastically compromise your financial future. The good news is that Dollar Tree offers a strong 401(k) plan with handy features including corporate contributions, flexible investment choices, and simple online administration to help you save for retirement.
Key Features of the Dollar Tree 401(k) Plan
| Feature | Details |
|---|---|
| Plan Provider | Empower Retirement |
| Eligibility | Employees aged 21+ with ≥1 year of service and ≥1,000 hours worked |
| Employer Match | 100% match on the first 5% of eligible compensation |
| Vesting Schedule | 20% after 2 years, 40% after 3 years, 60% after 4 years, 100% after 5 years |
| Investment Options | Mutual funds, target-date funds, and other securities |
| Loan Availability | Yes, subject to plan terms |
| Hardship Withdrawals | Available under specific conditions |
Enrollment Process
How to Enroll
- Access the Portal: Visit dollartree.com/retire or familydollar.com/retire.
- Register: Click on the “Register” button and follow the prompts to create your account.
- Provide Information: Enter your Social Security Number, ZIP code, last name, date of birth, and the numeric portion of your street address.
- Set Up Contributions: Choose your contribution rate and investment options.
Important Dates
- Eligibility: After completing one year of service and 1,000 hours worked.
- Enrollment Periods: Check with HR for specific enrollment windows.
Contribution Details
Employee Contributions
| Age Group | Annual Contribution Limit (2024) |
|---|---|
| Under 50 | $22,500 |
| 50 and Over | $30,000 (includes $7,500 catch-up) |
Employer Matching
- Match Rate: 100% match on the first 5% of eligible compensation contributed.
- Vesting: Immediate vesting in company match contributions.
Investment Options
Dollar Tree’s 401(k) plan offers a variety of investment choices to suit different risk tolerances and retirement timelines:
- Target-Date Funds: Automatically adjust asset allocation as you approach retirement.
- Mutual Funds: Diversified portfolios managed by professionals.
- Bond Funds: Focus on fixed-income securities for more conservative growth.
You can change your investment selections at any time through the Empower Retirement portal.
Managing Your 401(k) Account
Accessing Your Account
- Online: Log in at dollartree.com/retire or familydollar.com/retire.
- Mobile App: Download the Empower Retirement app from the App Store or Google Play.
Making Changes
- Contribution Rate: Adjust your deferral percentage as needed.
- Investment Choices: Reallocate funds to different investment options.
- Beneficiaries: Update beneficiary information to ensure your assets are distributed according to your wishes.
Withdrawals and Loans
Withdrawals
- Standard Withdrawals: Allowed after age 59½ without penalties.
- Early Withdrawals: Subject to a 10% penalty and income taxes unless an exception applies (e.g., disability, qualified hardship).
Loans
- Loan Availability: You may borrow up to 50% of your vested account balance, not exceeding $50,000.
- Repayment Terms: Typically repaid through payroll deductions over a period of up to five years.
Benefits of Participating
- Tax Advantages: Contributions are made pre-tax, reducing your taxable income.
- Employer Match: Enhances your retirement savings without additional cost to you.
- Investment Growth: Potential for compounded growth over time.
- Financial Security: Helps ensure a more comfortable retirement.
Support and Resources
- Empower Retirement Customer Service: Call 855-756-4738 for assistance with your account.
- HR Department: Contact your local HR representative for information on eligibility and enrollment periods.
- Online Resources: Access educational materials and retirement planning tools through the Empower Retirement portal.
Frequently Asked Questions
When am I eligible to enroll in the 401(k) plan?
You are eligible after completing one year of service and 1,000 hours worked.
How do I access my 401(k) account?
Log in at dollartree.com/retire or familydollar.com/retire, or use the Empower Retirement mobile app.
Can I change my contribution rate?
Yes, you can adjust your contribution rate at any time through the Empower Retirement portal.
What happens to my 401(k) if I leave Dollar Tree?
You can choose to leave your funds in the plan, roll them over to another qualified retirement account, or withdraw them (subject to taxes and potential penalties).
Are there penalties for early withdrawal?
Withdrawals before age 59½ may incur a 10% penalty in addition to income taxes, unless an exception applies.