The MIT Supplemental 401(k) Plan (referred to as the 401(k) Plan) helps eligible employees save and invest for retirement while receiving certain tax advantages. MIT will match up to 5% of your pay in contributions to the 401(k) Plan. You choose how your contributions — and MIT's matching contributions — are invested. Administrative and recordkeeping services for the 401(k) Plan are provided by Fidelity Investments.
You are generally eligible for the 401(k) Plan if you have been appointed and are currently working at MIT for at least three consecutive months and you are scheduled to continuously work at least 50% of the normal full-time work schedule — or you will have 1,000 hours or more of paid service in a calendar year and you are paid by MIT. Learn more about eligibility.
All the Plan provisions are subject to the terms of your collective bargaining agreement.
When you enroll in and contribute to your 401(k) account, you are 100% vested. You fully own your contributions, MIT's matching contributions, and all interest earned on the investments you choose through the Plan.
In addition, you receive the following tax benefits when you contribute to your MIT Supplemental 401(k) account:
You may be eligible for a special tax credit offered through the IRS if you qualify as a low- or moderate-income worker and participate in MIT's 401(k) Plan. MIT is not the sponsor of this credit, and all questions should be directed to your tax preparer or the IRS.
You contribute to your 401(k) account through deductions from your MIT pay. Your contributions are sent to Fidelity Investments at the end of each pay period. You may contribute as little as 1% and as much as 95% of your salary (within federally prescribed limits) after amounts for Social Security and Medicare taxes and health and dental insurance have been subtracted. You may start, stop, or change your deferral or investment elections at any time.
Federal law limits the amount of your pay each year that may be recognized for determining your allowable contribution. The limit is $245,000 in 2011 and 2012. MIT considers only the first $245,000 of pay for calculating your allowable contributions. This means that if your annual compensation exceeds $245,000, MIT Payroll will take 401(k) deductions from your pay until your pay for the year reaches $245,000, or one of the other 401(k) program limits has been reached (see Contribution Limits below).
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You can schedule a one-on-one session with an MIT Retirement Counselor and/or MIT's dedicated Fidelity onsite representative. Learn More.