401(k): Preparing for Retirement

Snowflake’s 401(k) plan through Fidelity is a retirement savings vehicle that allows you to contribute a portion of your paycheck on a traditional (pre-tax), Roth (post-tax) basis, and after-tax basis.

All new employees are automatically enrolled with a 5% pre-tax contribution rate, but you can adjust this contribution at any time on the Fidelity website.

• Tip: Start contributing early and increase your contributions as income grows.

Health Savings Account (HSA): Saving for Medical Expenses

An HSA is a tax-advantaged savings account designed to help you pay for qualified medical, dental and vision expenses now or in the future. Only Snowflakes enrolled in the Cigna OAP High Deductible Health Plan (HDHP) are eligible to contribute to the HSA. Contributions, withdrawals for eligible expenses, and investment growth are tax-free; the money is yours to keep, even if you leave the company. Even better, Snowflake contributes up to $1,000 for single coverage and $2,000 for those who cover dependents! For details on how to use your HSA, click here.

• Tip: Try to contribute up to the IRS maximum every year. Remember, these funds stay with you even if you leave Snowflake, so you don’t need to be afraid of losing them.

Flexible Spending Account (FSA): Managing Healthcare and Dependent Care Costs

An FSA allows you to set aside pre-tax dollars to pay for eligible expenses. Snowflake offers three types of FSAs:

• Healthcare (for a wide range of qualified medical, dental, and vision expenses)
• Limited Healthcare (for qualified vision and dental expenses only – intended for those enrolled in the Cigna HDHP plan)
• Dependent Care (for qualified child care / dependent care expenses)

Unlike the HSA, FSA funds are considered “use it or lose it.”  If you don’t spend all the money in your Healthcare FSA by the end of the given plan year, up to $660 of unused funds will automatically roll over into your account the following year. Anything more than that will not be rolled over, and will be subject to the “use it or lose it” rule.

If you do not spend all the money in your Dependent Daycare FSA by the end of the plan year, remaining funds will be forfeited.

• Tip: Be sure to incur qualified expenses by December 31st every year and submit your claims for reimbursement before the annual March 31st deadline to avoid forfeiting any funds in your account.

Life, Accidental Death & Dismemberment (AD&D), and Disability Insurance: Protecting Your Loved Ones

Snowflake provides basic life insurance and AD&D insurance to all Snowflakes. You can also purchase additional coverage for yourself and your family.

Tip: Review coverage annually to ensure it meets your family’s needs and update beneficiaries as needed.

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