Pearson makes it possible to help you meet your retirement goals. As mentioned late last year, the 401(k) match has increased effective January 1. If you contribute up to 8% of your pay, you can enjoy up to 5.5% of company matching funds. Below are the matching opportunities under the 401(k) plan:
on the first 3%
on the next 5%
As a participant in the 401(k), please keep the following in mind:
There’s a limit on the pre-tax amount you can contribute.
Each year the IRS releases certain limits related to the 401(k) plan. For 2018, the employee pre-tax deferral limit is $18,500. The $18,500 limit does not apply to company contributions.
The maximum compensation eligible for purposes of employee pre-tax deferrals and employer match is $275,000. The annual IRS compensation limit of $275,000 is a separate limit that works in conjunction with the $18,500 contribution limit. If your 2018 year-to-date eligible compensation exceeds $275,000, before you reached the $18,500 contribution limit, your 401(k) contributions will stop for the remainder of 2018.
If you are over 50 or turning 50 in 2018, you are eligible to make “Catch-up” contributions.
The employee pre-tax catch-up contribution limit for 2018 is $6,000. You are eligible to make catch-up contributions at the start of the plan year in which you will become age 50. For example, if your 50th birthday is August 2, 2018, you are eligible to set up your catch-up contribution any time before your birthday in 2018 as long as it is on or after January 1, 2018. Please note that you must reach the annual pre-tax deferral limit of $18,500 first in order for catch-up contributions to be classified as “catch-up.” Catch-up contributions are not eligible for the company match and can only be made via payroll deductions (i.e. you cannot send in a separate check for catch-up contributions).
Visit Empower Retirement’s website to see and or change your 401(k) contributions.
To access your 401(k) account, visit Empower’s employee portal. Once logged in select “The Pearson Retirement Plan:” select “My contributions under the Paycheck Contributions” left menu option and then click “edit” to make any changes to your current contribution level.