Your SAS Legacy maximized

YOUR BENEFITS

401k Plan

This retirement plan has a variety of investment options and allows you to make several different types of contributions: pre-tax, Roth, and after-tax. With pre-tax and Roth contributions, you are subject to the annual salary deferral limit. After-tax contributions have a higher contribution limit. SAS will match contributions up to 6% of your salary.

Health Savings Account

If you are enrolled in the High Deductible Health Plan, then you have access to a Health Savings Account. SAS will contribute to this account and you can make additional, tax-deductible contributions up to the annual limit. The earnings in this account are tax-deferred, and the withdrawals are tax-free if you use the funds for qualified medical expenses.

OPPORTUNITIES

If you have reached the salary deferral limit for your 401k contributions, the “mega backdoor Roth” strategy can be an effective way to save more – tax free – for retirement. To do this, you make after-tax contributions to the 401k and then complete an in-plan conversion. This will move the after-tax contributions to the Roth side of the 401k, where the funds can be invested and grow tax-free.

With an HSA, you do not have to deplete the account by the end of the calendar year. Instead, you could focus on building up the balance and investing it to take advantage of long-term market performance, and use the funds for
future medical expenses. You can also take an HSA distribution at any point to reimburse yourself for previous medical expenses, as long as those expenses were incurred after the HSA was first opened.