Wealth accumulation and financial security during retirement are top long-range objectives for most people. The BMC Software, Inc. Savings and Investment Plan (a 401(k) plan) gives you a distinct head start on reaching your financial goals. When you enroll in the plan, you elect to defer a certain percentage of your pay as a contribution to the plan. Your contributions may be made on a before-tax basis, after-tax basis, or through Roth 401(k) contributions. The plan’s combination of before-tax savings, company matching contributions and wide range of investment alternatives makes it one of the most attractive savings opportunities available.
You are eligible to enroll in the BMC 401(k) Plan on your date of hire. Once your new hire information is submitted to Fidelity and an account is set up, you can enroll at any time. You will see the change in your deductions in one to two pay periods.
To enroll in the BMC 401(k) Plan go to Fidelity NetBenefits® or call 1-866-546-4424.
You can contribute between 1% and 35% of your plan earnings to a before-tax or Roth account, up to the annual IRS dollar limit (for 2020 this limit is $19,500). In addition, you can contribute up to 10% of your plan earnings to an after-tax account. Plan earnings generally include many elements of cash compensation (such as base salary, short-term incentive, bonuses, overtime and commissions). If you are age 50 or older or will reach age 50 during the calendar year, you can make “catch-up” contributions to your account in addition to your regular contributions, up to the annual IRS dollar limit (for 2020 this limit is $6,500).
Please Note: The total of all contributions to your account cannot exceed $57,000. This includes any before-tax, Roth, after-tax and company matching contributions made to the plan (excluding catch-up contributions).
Enrolling in Your BMC 401(k) Plan
Log on to www.netbenefits.com or call Your Benefits Resources at 1-877-BMC-4849, (option Savings and Investments), or Fidelity directly at 1-866-546-4424 to enroll, to make your “catch-up” contribution election and/or to change any existing election.
Allow one week from your date of hire before calling. If you are a current participant, the changes will take effect within one to two pay periods.
The BMC 401(k) Plan allows you to make tax-advantaged contributions three different ways—to a before-tax account, a Roth 401(k) account or to an after-tax account. If you are wondering which contribution type is better for you— tax-deferred savings now (through the before-tax contributions), tax-free in the future (through the Roth feature) or defer taxes on earnings on after-tax money—look at the chart. You can go to Fidelity NetBenefits® for more information on all of these options. You may also want to consult with a personal tax advisor about the path that might be best for you.
BMC helps your retirement savings grow by matching your before-tax or Roth contributions. BMC matches 100% of every dollar you contribute, up to 5% of your eligible pay each pay period.
Please Note: Company matching contributions are made each pay period with your payroll contributions. There is no company match on after-tax or catch-up contributions.
We all want the most in life – and that includes getting the most out of our money as we save for the future. You have an opportunity to maximize your savings potential through the BMC 401(k) Plan by having a strategy based on your long-term goals. With three different ways to contribute, you can save on taxes now – or later, save for retirement on a potential tax-free basis, and continue making contributions beyond IRS limits for before-tax and/or Roth 401(k) contributions up to the total contribution limit.
Plus, it’s important to make sure you are contributing at a level and frequency to receive all of your eligible BMC company matching contributions throughout the year.
The BMC 401(k) Deferral Calculator has been programmed to help you determine a savings strategy to optimize your 401(k) contributions and is available on Fidelity NetBenefits® . This tool can help you determine how much to contribute each pay period to reach the annual IRS limits and help you maximize company contributions by not “maxing out” too soon. Enter a few pieces of information about your pay and savings goals and the tool will display a contribution strategy across the different contribution types available in the plan. The tool also takes into account these important limits:
The tool is easy to use, and it only take a few minutes to determine a strategy that may work for you. Before you begin, check your year-to-date contributions by reviewing your pay stubs or by going online to Fidelity NetBenefits and running a year-to-date statement. You can change your contribution rate at any time, and the changes will go into effect within 1-2 pay cycles.