Are Spirit Airlines Employees Consistently Making These 401(k) Mistakes?

Healthcare Provider Update: Healthcare Provider for Spirit Airlines Spirit Airlines provides its employees with comprehensive healthcare benefits, including medical, dental, and vision coverage. While specific carriers are not publicly disclosed, the company offers a variety of plan options designed to meet different employee needs, often including high-deductible and traditional plans paired with Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). Spirit also provides wellness programs and resources to support employee health and preventive care. (spirit.com) Healthcare Cost Increases in 2026 Looking ahead to 2026, healthcare costs are expected to rise sharply, with some states seeing premium increases exceeding 60% due to the potential expiration of enhanced ACA subsidies and rising medical costs. For employers like Spirit Airlines, this may translate to higher premiums for both the company and employees. Employees could face larger out-of-pocket expenses, making it increasingly important to maximize in-network care, leverage HSAs, and plan healthcare usage strategically in 2025 to mitigate the impact of next years cost increases. Click here to learn more

This paper is for Spirit Airlines 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 Spirit Airlines 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 Spirit Airlines 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.

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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.