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Are H.B. Fuller Employees Consistently Making These 401(k) Mistakes?

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This paper is for H.B. Fuller 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 H.B. Fuller 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 H.B. Fuller 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 is the H.B. Fuller 401(k) Savings Plan?

The H.B. Fuller 401(k) Savings Plan is a retirement savings plan that allows employees to save and invest a portion of their paycheck for retirement.

How can I enroll in the H.B. Fuller 401(k) Savings Plan?

Employees can enroll in the H.B. Fuller 401(k) Savings Plan by completing the enrollment process through the company’s benefits portal or by contacting the HR department for assistance.

Does H.B. Fuller match employee contributions to the 401(k) Savings Plan?

Yes, H.B. Fuller offers a matching contribution to the 401(k) Savings Plan, which helps employees boost their retirement savings.

What is the maximum contribution I can make to the H.B. Fuller 401(k) Savings Plan?

The maximum contribution limit for the H.B. Fuller 401(k) Savings Plan is determined by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limit.

When can I start contributing to the H.B. Fuller 401(k) Savings Plan?

Employees can start contributing to the H.B. Fuller 401(k) Savings Plan after they have completed the eligibility requirements set by the company.

How does H.B. Fuller’s matching contribution work?

H.B. Fuller typically matches a percentage of employee contributions up to a certain limit, which is outlined in the plan documents. Employees should refer to these documents for specific details.

Can I change my contribution amount to the H.B. Fuller 401(k) Savings Plan at any time?

Yes, employees can change their contribution amounts to the H.B. Fuller 401(k) Savings Plan at any time, subject to the plan’s guidelines.

What investment options are available in the H.B. Fuller 401(k) Savings Plan?

The H.B. Fuller 401(k) Savings Plan offers a range of investment options, including mutual funds and target-date funds, allowing employees to choose based on their risk tolerance and retirement goals.

Is there a vesting schedule for H.B. Fuller’s matching contributions?

Yes, H.B. Fuller has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own the employer contributions.

Can I take a loan from my H.B. Fuller 401(k) Savings Plan?

Yes, employees may have the option to take a loan from their H.B. Fuller 401(k) Savings Plan, subject to the plan’s terms and conditions.

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

Pension Plan: Name: H.B. Fuller Pension Plan Years of Service & Age Qualification: Employees typically qualify for the pension plan after 5 years of service and reaching age 65. Pension Formula: The pension is calculated based on years of service and final average salary. For example, it might be 1.5% of the final average salary multiplied by years of service. Specific Document: H.B. Fuller Annual Report, Page 45 (2023) 401(k) Plan: Name: H.B. Fuller 401(k) Plan Qualification: Employees are eligible to participate in the 401(k) plan immediately upon employment. The company may match contributions up to a certain percentage. Specific Document: H.B. Fuller Benefits Guide, Page 30 (2024)

In 2023, H.B. Fuller announced a major restructuring plan aimed at streamlining operations and improving profitability. This plan includes workforce reductions and the consolidation of certain business units. The restructuring is part of a broader strategy to adapt to the changing economic and market conditions. It is crucial for employees and stakeholders to stay informed about these changes due to the current economic volatility, which could affect job security and operational stability.

In 2022, H.B. Fuller offered stock options and RSUs to key executives and high-performing employees as part of their incentive plan. Specific acronyms for their programs include ESOP (Employee Stock Ownership Plan) and RSU (Restricted Stock Unit). Information can be found in the 2022 Proxy Statement, page 15.

Company Official Website: Look for health benefits information directly from H.B. Fuller's official website. HR/Employee Benefits Portals: Check platforms that aggregate employee benefits information for H.B. Fuller. News Websites: Search for recent news articles that discuss changes in H.B. Fuller's healthcare benefits. Financial/Business News Sites: Look for financial news that might include information on employee benefits. Industry-Specific Sites: Examine sources related to H.B. Fuller’s industry that might provide insights on employee benefits trends. Health Benefits Information for H.B. Fuller 1. Company Official Website H.B. Fuller Official Site: On H.B. Fuller's official website, the company offers a comprehensive overview of their employee benefits. Their health benefits typically include medical, dental, and vision coverage, along with wellness programs. Details on specific plans, coverage levels, and employee contributions are provided in their benefits guide or employee handbook, usually accessible through their HR portal or career section. 2. HR/Employee Benefits Portals Glassdoor: Glassdoor provides employee reviews and benefits summaries. For H.B. Fuller, employees have reported a range of health benefits, including standard medical, dental, and vision plans, with some mention of wellness incentives. Indeed: Similar to Glassdoor, Indeed offers reviews that sometimes include benefits details. For H.B. Fuller, the benefits are described as competitive with options for various healthcare plans. 3. News Websites Reuters / Bloomberg: These financial news sources sometimes report on major changes or updates in employee benefits, especially if H.B. Fuller has made recent changes or faced related news. Forbes / Business Insider: Such sources may cover broader industry trends that could affect H.B. Fuller's benefits or reveal specific company changes. 4. Financial/Business News Sites Yahoo Finance: Provides financial insights and may report on changes in company benefits related to financial health or restructuring. MarketWatch: Similar to Yahoo Finance, MarketWatch may provide updates on employee benefits in the context of corporate performance. 5. Industry-Specific Sites Chemical & Engineering News (C&EN): Since H.B. Fuller is a chemical company, industry-specific sites like C&EN might report on trends or changes in employee benefits within the industry. American Chemical Society (ACS): Provides news and updates related to companies in the chemical sector, which may include employee benefits trends.