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Five Below employees: Managing an Inheritance

Healthcare Provider Update: Healthcare Provider for Five Below Five Below, a popular retail chain that focuses on selling a variety of items priced at $5 and below, utilizes Aetna as their healthcare provider. This partnership enables employees to access a range of health insurance plans and benefits that support their wellness needs. Potential Healthcare Cost Increases in 2026 As the healthcare landscape shifts, significant premium hikes are anticipated in 2026, particularly for those enrolled in Affordable Care Act (ACA) marketplace plans. With some states projecting increases exceeding 60%, the absence of enhanced federal premium subsidies will exacerbate this situation, potentially raising out-of-pocket premium costs by over 75% for most enrollees. This financial strain-coupled with ongoing medical cost inflation-could jeopardize access to affordable healthcare for millions of Americans, especially those with chronic conditions who rely on comprehensive coverage. Click here to learn more

Five Below employees handling an inheritance should weigh the emotional cost of their legacy against the financial gain. A financial advisor like The Retirement Group can help align such large assets with long-term retirement and investment goals so decisions today reflect past and future needs.

Getting an inheritance means much more than just receiving money. It is an opportunity to protect your family financially. We advise Five Below employees to review their financial plans now so that their inheritance fits into their existing strategy and enhances their future prospects, according to The Retirement Group advisors.

We will discuss: 'In this article:

1. The Legal & Tax Implications: Understanding inheritance laws and the need to consult with legal and tax professionals is important.

2. Emotional and Strategic Financial Planning: Emotional aspects of receiving an inheritance must be balanced against strategic financial planning for the long term.

3. Retirement and Wealth Management: Assessing the impact that an inheritance may have on retirement plans and wealth management in general, with an eye toward Five Below employees.

Heirloom wealth may be a curse or a blessing. Even if you suspect a relative has planned to include you in their will, you may have overlooked some other aspects of the inheritance process. Here are some considerations if the event does occur.

Ask a lawyer or tax expert before making any decisions about inheritance—this is informational only and not a substitute for real advice.

Take your time. If someone cared enough about you to leave you an inheritance, you may need time to mourn their death. This is vital, but most of the bigger decisions regarding your inheritance will probably wait. Sometime later you may be better able to make decisions. Neh, don't go it alone. So many laws, options and dangers exist that an expert may be necessary.

Consider your own family. An inheritance may change one's own financial strategy. Make sure you consider this.

A tax collector could come to visit. The tax consequences if you inherited an IRA are important. Distributions to non-spouse beneficiaries are required by the end of the tenth calendar year following the year of death of the account owner under the SECURE Act.

The new rule also does not require the non-spouse beneficiary to withdraw funds within 10 years, as I have learned as a Five Below employee. The money must be withdrawn by the end of the tenth calendar year following the inheritance, however. Others may include the surviving spouse of the IRA owner, disabled or chronically ill individuals, people no older than the IRA owner and minor offspring of the IRA owner.

Stay informed. The estate laws have changed many times since you thought they were the same.

Keep in mind what you should be doing in your situation. The sentiment is understandable—you may want to leave your inheritance as it is out of respect for your relative. What if the inheritance is not right for your situation now? A financial professional can help you decide whether the inheritance meets your objectives, time horizon, and risk tolerance.

Added Fact:

A study by Merrill Lynch in 2021 suggests Five Below employees handling an inheritance should consider the impact on their retirement plans. Of those who received an inheritance, 42% said it affected their retirement timeline, the study found. Some retired earlier than expected and some worked longer to cash in on the inheritance. That insight illustrates why Five Below employees considering retirement should consider how an inheritance might affect their financial goals, lifestyle decisions, and overall retirement strategy. An integrated approach combining the inheritance and long-term retirement plans may help with informed decision-making.

Added Analogy:

Managing an inheritance as a Five Below employee feels like receiving an heirloom—an extremely sentimental piece. Like you would handle such an heirloom carefully, you should handle your inheritance strategically as well. Think about holding that heirloom and realizing its significance in your life and in your family history. As you would consult experts on art preservation to determine its true value and to ensure its long-term preservation, you should also consult lawyers, tax, and financial professionals about how to manage your inheritance. Consider your inheritance a treasure—honor the past while making sound financial decisions for the future. Like an heirloom that tells generations of stories, your inheritance should be a part of your overall wealth management strategy that will live on indefinitely.

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Articles you may find interesting:

Sources:

1. Senior Strong 'Understanding Inheritance Tax Impact on Retirees.' Senior Strong , 2023, www.seniorstrong.org . Accessed 24 Feb 2025.

2.Accounting Insights 'Managing Your Inheritance: Strategic Financial Planning Guide.' Accounting Insights , AccountingInsights Team, 2023, www.accountinginsights.org . Accessed 24 Feb 2025.

3. Kiplinger Waggoner, John. 'Don’t Count on an Inheritance for Your Retirement Plan.' Kiplinger , 27 Jan 2025, www.kiplinger.com . Accessed 24 Feb 2025.

4. CreditBrite 'How to Navigate Retirement Planning After Inheriting Assets.' CreditBrite , 2023, www.creditbrite.com . Accessed 24 Feb 2025.

5. Kiplinger’s Free E-Newsletters 'Investing, Taxes, Retirement.' Kiplinger’s Free E-Newsletters , 2025, www.kiplinger.com . Accessed 24 Feb 2025.

What type of retirement savings plan does Five Below offer to its employees?

Five Below offers a 401(k) retirement savings plan to its employees.

Is participation in the 401(k) plan at Five Below mandatory?

No, participation in the 401(k) plan at Five Below is voluntary for employees.

Does Five Below provide any matching contributions to the 401(k) plan?

Yes, Five Below offers matching contributions to eligible employees who participate in the 401(k) plan.

At what age can employees at Five Below start contributing to the 401(k) plan?

Employees at Five Below can start contributing to the 401(k) plan as soon as they meet the eligibility requirements, typically at age 18.

How can employees at Five Below enroll in the 401(k) plan?

Employees at Five Below can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal.

What investment options are available in the Five Below 401(k) plan?

The Five Below 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees at Five Below change their contribution percentage to the 401(k) plan?

Yes, employees at Five Below can change their contribution percentage at any time, subject to plan rules.

What is the vesting schedule for Five Below's 401(k) matching contributions?

Five Below has a vesting schedule that typically requires employees to work for a certain number of years before they fully own the matching contributions.

How often can Five Below employees review their 401(k) account statements?

Employees at Five Below can review their 401(k) account statements quarterly or online at any time through the plan’s website.

What happens to the 401(k) plan if an employee leaves Five Below?

If an employee leaves Five Below, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave it in the Five Below plan if allowed.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

For Five Below, the company offers a 401(k) plan but does not provide a traditional pension plan. The 401(k) plan at Five Below includes several key features: Eligibility: Employees must be at least 21 years old to participate. Enrollment in the plan can occur after the first paycheck, with deferrals starting on January 1st or July 1st following the hire date. Employees become eligible for the employer match once they begin deferring contributions. Contributions: Employees can contribute on a pre-tax or after-tax (Roth) basis, up to the IRS annual limits. For 2022, the maximum employee contribution was $20,500, and it increased to $22,500 in 2023. Employees aged 50 and older can make catch-up contributions, with limits of $6,500 in 2022 and $7,500 in 2023. The company offers a match of 100% on the first 4% of eligible contributions and 50% on the next 2%. Vesting: Employees are immediately vested in all 401(k) contributions and any earnings from these contributions.

Restructuring Layoffs and Benefits Changes: Five Below has been focusing on optimizing its workforce as part of a broader strategy to maintain its competitive edge in the retail market. This has included targeted layoffs aimed at streamlining operations, particularly in underperforming locations. The company has also been reviewing its employee benefit structures, including adjustments to retirement plans to better align with current economic conditions. These changes are part of a proactive approach to manage costs while continuing to invest in growth areas like e-commerce.

Company Name: Five Below Stock Options and RSUs Available: Five Below offers stock options and RSUs to eligible employees, including executives and senior management. The RSUs are granted based on performance and tenure. Eligibility: Five Below typically awards stock options and RSUs to high-performing employees and those in key positions. Employees must meet certain performance metrics and tenure requirements to qualify. Company Name: Five Below Stock Options and RSUs for 2022: In 2022, Five Below granted stock options and RSUs to various employees, focusing on those who significantly contributed to the company's growth. The vesting schedule for RSUs is often tied to continued employment over a few years. Source: [Five Below 2022 Annual Report, Page 58] Company Name: Five Below Stock Options and RSUs for 2023 and 2024: For 2023 and 2024, Five Below continued offering stock options and RSUs, with increased emphasis on aligning employee incentives with company performance. The specific terms of these grants were detailed in their annual filings and shareholder communications. Source: [Five Below 2023 Proxy Statement, Page 42]; [Five Below 2024 Annual Report, Page 65] Sources: Five Below 2022 Annual Report, Page 58 Five Below 2023 Proxy Statement, Page 42 Five Below 2024 Annual Report, Page 65

Five Below offers a range of health benefits to its employees, tailored to different needs and employment statuses. Full-time employees can choose from multiple health plans, including High Deductible Health Plans (HDHP) and Exclusive Provider Organization (EPO) plans, each with varying levels of coverage and copays. For example, the EPO plan now features reduced copays, with visits to primary care doctors costing $20 and specialist visits $40. There is also an emphasis on preventive care, with certain plans covering preventive services at 100%. Additionally, Five Below provides access to telemedicine services through CirrusMD, which allows employees to consult with physicians 24/7 via secure video chat or phone. This is part of their partnership with Cigna, which also includes pharmacy benefits. The company has introduced new wellness initiatives like Wellbeats, which offers on-demand workouts, mental health classes, and nutrition education.

Additional Articles

Check Out Articles for Five Below employees

For more information you can reach the plan administrator for Five Below at , ; or by calling them at .

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