Savings and Income Plan (401(k))

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What you need to know

Sandia is committed to helping you plan and save for the future. 

The 401(k) plan, offered in partnership with Fidelity, provides you with one of the easiest ways to do so, using both pretax and after-tax dollars.

You can also take advantage of several investment options and access to guidance and financial planning services.

This page provides a summary of the plan – you can get more details through HR Solutions.

Your Contributions to Your 401(k)

You have three ways to save: through pretax, Roth, and after-tax contributions to your 401(k).

  • With pretax contributions, your money goes into your account pretax. This lowers your taxable income, and your money is taxed when it’s withdrawn in the future.
  • With Roth contributions, your money goes into your account after you pay federal and state taxes on the amount contributed. When you withdraw it in the future, it is not taxed – and as long as you meet certain requirements, your investment earnings are not taxed either.
  • With after-tax contributions, your money goes into your account after you pay federal and state taxes on the amount contributed. When you withdraw the money, the principal amount is not taxed, but any investment earnings are.

You can contribute 2% to 75% of your eligible pay* to your 401(k), subject to IRS limits.

  • Contribute up to $22,500 for 2023 (or $30,000 if you’re age 50+) to the pretax or Roth options.
  • If you max out your pretax and Roth contributions and you want to save more, you can contribute after-tax, up to IRS limits.

*Eligible pay includes your base salary or wages plus certain variable pay compensation. Refer to the Savings Income Plan Summary Plan Description for more information.

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Sandia’s Contributions to Your 401(k)

Sandia helps your savings grow faster by contributing to your 401(k) too.

  • With our matching contributions, Sandia adds 66-2/3 cents to your account for every dollar that you contribute, up to the first 6% of earnings you contribute each pay period.
  • In addition, Sandia makes an enhanced program contribution to your account if you are not eligible for the Sandia pension plan. The enhanced program contribution amount increases with your years of service with Sandia:
    • In years 1 to 14 with Sandia, you receive an amount equal to 6% of eligible pay* each year.
    • At year 15 and above, Sandia’s contribution increases to an amount equal to 7% of eligible pay* each year.

*Eligible pay includes your base salary or wages plus certain variable pay compensation.  Refer to the Savings Income Plan Summary Plan Description for more information.

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Investing and Managing Your 401(k)

The 401(k) plan features many investment options, plus access to planning tools and calculators, education, and guidance from Fidelity.

Fidelity’s eLearning tools help you set financial goals to make the right plan for you. Register on Fidelity’s website, and after you log in, select Tools from the menu.

And that’s not all: Fidelity Investor Centers are located nationwide and available free of charge to all Fidelity account holders. You can meet with a financial advisor who will work with you to review and analyze your 401(k) account and answer your questions.

As you manage your 401(k), consider automatic Roth in-plan conversions – a new feature introduced in 2020. You can automatically convert new after-tax contributions to Roth in the NTESS 401(k) Plan. Converting money in a traditional 401(k) to a Roth 401(k) has many potential advantages. Of course, you’ll need to pay taxes on the converted amount. But once the money is in a Roth IRA, you don’t pay taxes on qualified withdrawals, giving you more flexibility to manage your taxes in retirement and boost after-tax income.

Contact Fidelity to learn more; log in to Fidelity NetBenefits® at 401k.com to set up this feature.

 

Fidelity’s eLearning tools help you set financial goals to make the right plan for you. Register on Fidelity’s website, and after you log in, select Tools from the menu.

Fidelity Investor Centers are located nationwide and available free of charge to all Fidelity account holders. You can meet with a financial advisor who will work with you to review and analyze your 401(k) account and answer your questions.

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Get schooled with Sandia’s tools

In addition to the tools and resources offered through Fidelity, Sandia partners with Financial Engines to help you determine your retirement income needs and goals, as well as strategies for reaching those goals, including advice about how to invest your contributions. 

You can get online advice or talk with a financial professional. 

Learn more at www.financialengines.com/forSandia.

Contacts and Resources

Fidelity

800-240-4015
www.401k.com

Apps

Financial Engines

877-401-5762
www.financialengines.com/forSandia

Apps

  • App Store
  • Google Play (not available at this time)
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Quick Tip

Don’t leave money on the table

Consider contributing at least 6% of your earnings to your 401(k). This makes you eligible for the full Sandia match and helps you accumulate greater savings faster.  

You are always fully vested in your contributions, and you vest in the company contributions over time.