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Over the last forty years, the 401(k) plan has become the most popular retirement savings vehicle for Moderna employees, outpacing both individual retirement accounts (IRAs) and traditional pension plans. This change highlights a major shift in retirement planning, as employees are now more responsible for shieldinging their financial security than they were in the past when employers handled defined benefit pension plans. The shift from self-managed 401(k) plans to guaranteed company pensions is a significant shift in the design of retirement benefits. Even though the 401(k) has many benefits, improvements might be made to better serve the needs of Moderna retirees in the future.
According to recent findings from the Employee Benefit Research Institute (EBRI) , raising catch-up contributions might greatly increase retirement savings for Moderna employees who are getting close to retirement. In addition to the regular cap, individuals 50 years of age and beyond can contribute an extra $6,500 to their 401(k) plans as of 2021. Moderna employees in their later years of employment who need to increase their retirement savings will find this option especially helpful. Improving these contributions could further assist retirees' financial stability and better prepare them for longer retirement periods, as life expectancy continues to rise. These changes would be an essential improvement over the 401(k) plans that are in place.
Examine the development and significance of the 401(k) plan, which has surpassed IRAs and traditional pensions to become the most popular option for retirement savings for Moderna employees. Discover how these programs, which give you flexibility and control over your retirement funds, have evolved to meet the demands of contemporary finance. To better prepare for a secure future, recognize the need for self-managed retirement planning and the possibility of increasing 401(k) contributions. This is perfect for Moderna professionals aiming to maximize their financial stability as they approach retirement.
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Think of the 401(k) as the flagship ship cruising the wide retirement waters for Moderna employees. Previously, retirees depended on the crew of the ship—traditional pensions—to lead them securely to their final destination: retirement. But as times have evolved, Moderna employees are now in control and using contemporary navigational aids (401(k) plans) to design their own path. These tools have developed to provide greater flexibility and control, but just as improving a ship's equipment can increase its effectiveness and safety, so too can improving a 401(k) plan's features, such as adding more investment options and raising contribution limits, assist in a a safer and more comfortable transition to retirement.
What is the 401(k) plan offered by Moderna?
Moderna offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary on a pre-tax or Roth after-tax basis.
How can I enroll in Moderna's 401(k) plan?
Employees can enroll in Moderna's 401(k) plan through the company’s benefits portal during the open enrollment period or within 30 days of their hire date.
Does Moderna offer a company match for the 401(k) contributions?
Yes, Moderna provides a company match for employee contributions to the 401(k) plan, which helps boost retirement savings.
What is the maximum contribution limit for Moderna's 401(k) plan?
For 2023, the maximum contribution limit for Moderna's 401(k) plan is $22,500, with an additional catch-up contribution of $7,500 for employees aged 50 and older.
Can I change my contribution percentage to Moderna's 401(k) plan?
Yes, employees can change their contribution percentage to Moderna's 401(k) plan at any time through the benefits portal.
What investment options are available in Moderna's 401(k) plan?
Moderna's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
How often can I change my investment choices in Moderna's 401(k) plan?
Employees can change their investment choices in Moderna's 401(k) plan at any time, allowing for flexibility in managing their retirement savings.
Is there a vesting schedule for the company match in Moderna's 401(k) plan?
Yes, Moderna has a vesting schedule for the company match, which typically requires employees to work for a certain number of years before they fully own the matched contributions.
Can I take a loan against my 401(k) with Moderna?
Yes, Moderna allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan document.
What happens to my 401(k) plan if I leave Moderna?
If you leave Moderna, you have several options for your 401(k) plan, including rolling it over to an IRA or a new employer's plan, cashing it out, or leaving it with Moderna.