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Navigating Change: Financial Insights for Divorced Employees of Mattress Firm Group

The latest research suggests that divorce rates in the U.S. have been falling in recent decades. Still, many people face the difficult crossroads that comes when their marriage ends.

Getting a divorce is a painful, emotional process. Don’t be in such a hurry to reach a settlement that you make poor decisions that can have life-long consequences. For any of our Mattress Firm Group clients who may possibly have to have a divorce, here are a few financial ideas that may help you prepare.

The most important task these Mattress Firm Group employees can do is to get their finances organized. Identify all your assets and make copies of important financial papers, such as deeds, tax returns, and investment records. When it comes to dividing up your assets, consider mediation as a low-cost alternative to litigation. Most states have equitable-distribution laws that require shared assets to be divided 50/50 anyway. When a divorce becomes contentious, attorney’s fees can accumulate.

From a financial perspective, divorce means taking all the income previously used to run one household and stretching it out over two residences, two utility bills, two grocery lists, etc. There are other hidden costs as well, such as counseling for you or your children. Divorces also may require incurring one-time fees, such as a security deposit on a rental property, moving costs, or increased child-care.

Finally, dividing assets may sound simple but it can be quite complex. The forced sale of a home or investment portfolio may have tax consequences. Potential tax liability also can make two seemingly equal assets have varying net values. Additionally, when pulling apart a portfolio, it makes sense to consider how each asset will suit the prospective recipient in terms of risk tolerance and liquidity.

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We'd like our Mattress Firm Group clients to remember, the information in this article is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

During a divorce, many factors are competing for attention. By these Mattress Firm Group employees understanding a few key concepts, they may be able to avoid making costly financial mistakes.

Average Interest Rate

Chart Source: Familyinequality.com, 2019

1. The Wall Street Journal, 2019

What type of retirement savings plan does Mattress Firm Group offer to its employees?

Mattress Firm Group offers a 401(k) retirement savings plan to help employees save for their future.

How can employees of Mattress Firm Group enroll in the 401(k) plan?

Employees of Mattress Firm Group can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does Mattress Firm Group match employee contributions to the 401(k) plan?

Yes, Mattress Firm Group provides a matching contribution to employee 401(k) accounts, subject to certain limits and eligibility requirements.

What is the maximum contribution limit for the Mattress Firm Group 401(k) plan?

The maximum contribution limit for the Mattress Firm Group 401(k) plan is in accordance with IRS guidelines, which may change annually. Employees should check the current limit for the year.

Are there any vesting requirements for the 401(k) matching contributions at Mattress Firm Group?

Yes, Mattress Firm Group has a vesting schedule for matching contributions, meaning employees must work for the company for a certain period before they fully own those contributions.

Can employees of Mattress Firm Group take loans against their 401(k) savings?

Yes, Mattress Firm Group allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.

What investment options are available in the Mattress Firm Group 401(k) plan?

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

How often can employees of Mattress Firm Group change their 401(k) contribution amounts?

Employees of Mattress Firm Group can change their 401(k) contribution amounts at any time, subject to the plan’s guidelines.

Is there a penalty for withdrawing funds from the Mattress Firm Group 401(k) plan before retirement?

Yes, there may be penalties and taxes for withdrawing funds from the Mattress Firm Group 401(k) plan before reaching the age of 59½.

What happens to my 401(k) savings if I leave Mattress Firm Group?

If you leave Mattress Firm Group, you can choose to roll over your 401(k) savings into another retirement account, leave it in the Mattress Firm Group plan (if eligible), or cash it out (though this may incur taxes and penalties).