Overview
Whether retirement is a long way off or just around the corner, the 401(k) can help you prepare for a more financially secure future. It’s easy-to-use, provides company funding, and offers valuable tax advantages.
Key features
Easy payroll deductions
You contribute to the plan with automatic deductions from your paycheck, making it effortless to build up savings for retirement.
Company contributions
Shields Health contributes to your account to help your savings grow faster.
Tax savings
You’ll pay less in income taxes now when you make before-tax contributions from your paycheck, or you can save on taxes later (when you withdraw your money) if you make Roth after-tax contributions.
Wide range of investment options
You choose how you want to invest your money.
Eligibility & Enrollment
All employees are eligible for the 401(k), if you are age 21 or older and worked 1 hour within your initial 30 days of employment. You will be auto-enrolled in the traditional before-tax 401(k) the month following 30 days of employment, with a contribution rate of 4%. On July 1 of every year, your contribution rate will automatically increase by 1% until reaching 11% in your 8th year. You may change contributions, investments, or beneficiaries at any time through Fidelity.
Your Contributions
You may contribute between 1% and 75% of your eligible pay to your plan account, up to annual IRS limits. The following limits apply to your before-tax contributions, Roth after-tax contributions, or a combination of both.
2026 contribution limits
- $24,500 if you are under age 50
- $32,500 if you are age 50 or older in 2026 (which includes an additional $8,000 in catch-up contributions)
Before-tax vs. Roth after-tax: What’s the difference?
The 401(k) offers you two tax-advantaged ways of saving for retirement:
- With before-tax contributions – the money goes into your account before taxes are deducted, so you lower your taxable income now. Then, you’ll owe ordinary income tax on both your contributions and any investment earnings when you withdraw your money in retirement.*
- With Roth after-tax contributions – the money goes into your account after taxes are withheld, then both your contributions and any associated earnings can be withdrawn tax-free in retirement.**
*Early withdrawals before age 59½ may incur a 10% penalty.
**In order for Roth earnings to be withdrawn tax-free, you must be at least 59½ (or the withdrawal follows death or total disability), and at least five years must have elapsed since your first Roth contribution.
Catch up!
If you’ll be 50 or older this year, you can contribute extra money to your account through catch-up contributions.* The amount you can contribute as catch-up contributions will depend on your age. Refer to the contribution limits above.
*If you earned $150,000 or more in FICA wages in 2025, any catch up contributions must be made to your Roth 401(k) account. If you earned less than $150,000, you may make catch-up contributions to your before-tax or Roth 401(k) account.
Company Contributions
Shields Health supports you in reaching your retirement goals by making contributions to your 401(k) account. Shields Health has a discretionary 401(k) plan match. For 2026, Shields Health will match 25% of your 401(k) contributions, capped at 4% of your salary.
Here’s how the company match works:
Example: If you earn $50,000 per year and contribute 6% ($3,000 annually), the company will contribute $750.
Don’t say no to free money!
Contribute at least 16% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to your Fidelity account to increase your contribution rate.
Profit sharing contributions
In addition to making matching contributions, Shields Health may make discretionary profit sharing contributions.
Vesting
Vesting is another way of saying “how much of the money is yours to keep if you leave the company.”
You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in the company’s contributions over time and will be fully vested after five years. Refer to the plan documents for more details about the vesting schedule.
| Years of Service | Vested Percentage |
|---|---|
| Less than 1 | 0% |
| 1 but less than 2 | 20% |
| 2 but less than 3 | 40% |
| 3 but less than 4 | 60% |
| 4 but less than 5 | 80% |
| 5 or more | 100% |
Name a Beneficiary
It’s important to designate a beneficiary to receive the remaining value of your 401(k) account upon your death. As personal circumstances change, be sure to keep that information up to date so that funds will be distributed according to your wishes. Log in to your Fidelity account to add or change your beneficiary.