Specialized 401(k) Plan
All teammates will have a 401(k) account in their name with Fidelity. Upon hire, new teammates have the chance to elect the default deferral amount of 4% of pretax earnings, another percentage, or to opt out of the program.
Effective May 1st, 2022, all 401(k) plan administrative fees will be paid for by Specialized.
teammates with an annual base salary less than or equal to $100,000:
Specialized will match 100% of your pre-tax and ROTH contributions to an annual match maximum of $5,000.
teammates with an annual base salary greater than $100,000:
Specialized will match 50% of your pre-tax and ROTH contributions to an annual match maximum of $5,000.
FAQ:
Is there a Vesting schedule for Employer Match?
For our 401k plan - The employer match is setup as immediate vesting which means you are entitled to the funds as soon as they are posted to your account.
How do I rollover my previous account into the Specialized Fidelity plan?
You can follow instructions from the Fidelity NetBenefits app or website.
Have you contributed to a prior 401(k) plan this year?
If yes, please track your calculations to ensure you do not max out for the calendar year. SBC and Fidelity are unable to track and manage the limit if you have a mid-year plan change.
When does my plan start (new hires)?
If you do not take action to enroll/edit your contribution amount other than the auto 4%, there will be a 35 day enrollment period, and the plan will start effective the 1st of the month following that timeframe.
If you take action and enroll on your own, then you will enter the plan on the 1st of the month following the change.
5. Can I separate my regular deferral rate from my bonus deferral rate?
Yes, effective January 1, 2024 Fidelity has a separate deferral election for bonus payments. This will default to zero if no “bonus deferral” election is made. Follow instructions below to change the deferral.
Changes to your contribution & Investment selections
Changes to deferral elections can be made anytime through Fidelity and will typically take effect the first pay period of the next month. After you log in to your Fidelity account, follow these links to update your contributions:
Select the “quick links” drop down menu in the upper right corner
Select “contribution amount” from this menu
Investment selections are also made on the Fidelity account site, where you can also research more details about each investment option within the plan.
Contact
You can manage your 401(k) directly through Fidelity's site or app. If you prefer to get help over the phone or need site assistance, contact Fidelity Participant Services at: 800-835-5097.
For a copy of the Summary Plan Description (SPD), click here.
Specialized Profit Sharing Plan
The Profit Sharing program is another component to the retirement savings plan. Profit Sharing is a discretionary contribution made directly to 401(k) accounts for eligible teammates. The company will decide at the end of each Model Year whether a contribution will be made based on business results. The contribution amount may change from year to year depending on business results, and is not guaranteed.
To learn more about eligibility, go here.
Some common FAQs about Profit Sharing:
Q: What is profit sharing?
A: Profit sharing is a discretionary contribution from Specialized to your Specialized sponsored 401k.
Q: How is profit sharing different from the Specialized 401k match program?
A: Profit sharing is a benefit teammates can receive in addition to the Specialized 401k match program, and is provided after the close of the model year to eligible teammates when Specialized meets a certain profit criteria.
Q: Can I receive the profit sharing funds if I do not participate in the Specialized sponsored 401k program?
A: Yes! All Specialized teammates in the US have an account within our 401k plan at Fidelity. Even if you do not participate in the 401k, there is an account for you because you may be eligible for Profit Sharing contributions. If you are eligible for Profit Sharing, the contribution will be deposited to that account.
Q: How did Specialized determine my personal profit sharing allocation?
A: Your profit sharing allocation is based on your salary as a percentage of the total of all eligible teammates’ salaries.
Q: Where and when will I receive my profit sharing allocation?
A: Eligible teammates will receive the profit sharing allocation in their Fidelity account by the end of September. Please check your Fidelity account for details regarding the amount. https://nb.fidelity.com/public/nb/default/home
Q: Can I get my Profit Sharing contribution paid out in cash instead of putting it in my 401k account?
A: No. The Profit Sharing benefit is a component of the 401k plan, not a cash bonus. Further, there is a vesting schedule that applies to Profit Sharing dollars, which is managed through the 401k plan. Vesting schedule can be viewed here.
Q: Where can I get help finding more information?
A: For assistance using your Fidelity portal or for questions about your account, contact Fidelity Participant Services: 800-835-5097.
RETIREMENT PLANNING Financial Consultant
All teammates can take advantage of free retirement planning advice through our partnered consultants.
Contact ABD for help via email at: 401khelp@theabdteam.com. Let them know you are a Specialized teammate and would like to schedule a time to discuss your retirement account.