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This paper is for BlueLinx Holdings employees who will have to know the basics of their 401(k) plans, including the role of the company's contributions and the way the assets are invested in order to understand the basics of the retirement planning process.'

'['Free' means that, as a BlueLinx Holdings employee, you can optimize your retirement savings and, thus, your future financial independence by frequently checking and changing your 401(k) contributions, as well as by consulting for a Roth 401(k)].

In this article, we will discuss:

1. How to increase your chances of retirement savings by taking advantage of employer contributions.

2. What are the conditions under which you own the company contributions? Do not miss the money! A simple guide to the basics of stock investing within your 401(k) plan.

3. It is not intended to be an exhaustive treatment of the subject, but rather a general introduction that will help you understand the basics and consider whether or not to participate.

In a time of increasing financial complexity, it is essential to know how to make the most out of your savings, especially when you are planning for your retirement. The 401k plan has been and will be one of the best ways to build wealth over the long term. However, as with any instrument, its effectiveness depends on the user’s understanding of its capabilities and potential risks.

Harnessing Matching Contributions:

Most of the BlueLinx Holdings companies provide for matching schemes under which they pay for a certain percentage of the amount an employee places into a 401k. On average, companies match 4.5% of employee contributions, as per Vanguard’s annual report. Although this percentage may not be very high, it can amount to a lot of money over the years. When you include the interest that is charged on the account, this can make for a good retirement portfolio.

Vesting Requirements - Patience Pays:

Vesting refers to the conditions under which an employee is entitled to the company contributions to a 401(k) plan. Two main types are:

Cliff Vesting: Contributions are fully vested at the end of the set period, which is usually three years.

Graded Vesting: The employer’s contributions become vested at 20% annually from the second year and at 100% by the end of the sixth year.

Thus, if you change jobs before your contributions become vested, you will deny yourself access to the money. So, it is important to know your company’s vesting policy.

The Risk of Company Stock:

While it may be tempting to invest in your company’s stock, it’s wise to limit such investments to 5-10% of your total 401(k) assets. This is because too much money is at risk in the event the company is not doing well.

The Dual-Edge of Stock Investments:

Equities, or stocks, shouldn’t be avoided entirely. Although they are risky, very conservative products may not perform well versus inflation, and, thus, reduce your buying power in the future. This is where balanced equity investments come in to help with this.

Sources:

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Articles you may find interesting:

1. Internal Revenue Service (IRS). 'Matching Contributions Help You Save More for Retirement.' IRS, https://www.irs.gov/retirement-plans/matching-contributions-help-you-save-more-for-retirement . Accessed 17 Feb. 2025.

2. Internal Revenue Service (IRS). 'Retirement Topics - Vesting.' IRS, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-vesting . Accessed 17 Feb. 2025.

3. Empower. 'What is 401(k) Matching & How Does It Work?' Empower, https://www.empower.com/the-currency/work/how-does-401k-matching-work . Accessed 17 Feb. 2025.

4 Investopedia. '401(k) Vesting Rules.' Investopedia, https://www.investopedia.com/401-k-vesting-rules-5323652 . Accessed 17 Feb. 2025.

5. National Council on Aging (NCOA). 'Leverage Employer Matching Contributions to Your 401(k).' NCOA, https://www.ncoa.org/article/matching-contributions-101-how-to-maximize-your-retirement-savings-now . Accessed 17 Feb. 2025.

What type of retirement savings plan does BlueLinx Holdings offer to its employees?

BlueLinx Holdings offers a 401(k) retirement savings plan to its employees.

Does BlueLinx Holdings match employee contributions to the 401(k) plan?

Yes, BlueLinx Holdings provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the eligibility requirement for employees to participate in the BlueLinx Holdings 401(k) plan?

Employees of BlueLinx Holdings are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

How can employees of BlueLinx Holdings enroll in the 401(k) plan?

Employees can enroll in the BlueLinx Holdings 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What investment options are available in the BlueLinx Holdings 401(k) plan?

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

Can employees of BlueLinx Holdings take loans against their 401(k) savings?

Yes, BlueLinx Holdings allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What is the vesting schedule for the employer contributions in the BlueLinx Holdings 401(k) plan?

The vesting schedule for employer contributions in the BlueLinx Holdings 401(k) plan typically follows a graded vesting schedule, which means employees earn ownership of the contributions over a period of time.

How often can employees change their contribution amount to the BlueLinx Holdings 401(k) plan?

Employees can change their contribution amount to the BlueLinx Holdings 401(k) plan at any time, subject to the plan’s guidelines.

What resources does BlueLinx Holdings provide to help employees manage their 401(k) investments?

BlueLinx Holdings provides educational resources, including workshops and online tools, to help employees manage their 401(k) investments effectively.

Is there a minimum contribution requirement for the BlueLinx Holdings 401(k) plan?

Yes, BlueLinx Holdings may have a minimum contribution requirement for employees participating in the 401(k) plan, which is outlined in the plan documents.

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

BlueLinx Holdings has announced a significant restructuring plan, including layoffs of 10% of its workforce and a reduction in benefits to cut costs amid declining market demand.

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For more information you can reach the plan administrator for BlueLinx Holdings at 4300 Wildwood Pkwy Atlanta, GA 30339; or by calling them at +1 770-953-7000.