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401(K) Plan
The Mercury 401(k) Plan makes it simple and rewarding to save for your future.
Taking steps to ensure your current and future financial security is an important part of your overall well-being. The Mercury 401(k) Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.
Key advantages at a glance
- Company match. For every dollar you contribute, Mercury will add an additional dollar up to the first 1% of your pay, and $0.50 for each dollar you contribute from 2% to 6% of your pay.
- Current tax savings. You’ll pay less in income taxes when you make pre-tax contributions.
- Option to make Roth post-tax contributions. You pay taxes now, and won’t when you withdraw funds in retirement.
- Tax-deferred investment growth. With pre-tax contributions, your money has the potential to grow faster.
- Wide range of investment choices. Choose how you want to invest your money.
- Convenient payroll deductions. The Mercury 401(k) Plan makes it easy to save for your future.
Eligibility and enrollment
You are eligible to participate on the 1st day of the month following 60 days of hire. If you don’t take any enrollment action — either enrolling yourself or opting out — within [60 days] of becoming eligible, you will be automatically enrolled, and 6% of your eligible pre-tax pay will be invested in the SSgA Target Retirement Non-Lending Series Fund Class D. You may change your contribution rate and investment elections at any time by visiting Fidelity or calling 800-835-5095.
You may contribute between 1% and 50% of your eligible pay to your plan account, up to annual IRS limits. In 2024, the IRS limits allow you to contribute up to:
- $23,000 if you are under age 50
- $30,000 if you’re age 50 or older this year (which includes an additional $7,500 in catch-up contributions, made as a separate dollar amount election).
Your contributions are made on a pre-tax basis, which lowers your current taxable income and tax bill.
These limits include your pre-tax contributions, Roth post-tax contributions, or a combination of both.
The Mercury 401(k) Plan gives you the flexibility to save for retirement in a variety of ways. You can make pre-tax contributions, Roth post-tax contributions, or a combination of the two.
Pre-tax contributions
The money goes into your account before taxes are deducted, so you keep more of your take-home pay. Then, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).
Roth post-tax contributions
The money goes into your account after taxes are withheld. Then, both your contributions and any associated earnings can be withdrawn tax-free in retirement.*
*In order for Roth earnings to be withdrawn tax-free, you must meet these two requirements:
- At least five years have elapsed since your first Roth contribution.
- You are at least 59½ or the withdrawal follows death or total disability.
It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.
Company Contributions
To help you reach your retirement planning goals, Mercury will also contribute to your account!
Company matching contributions
Mercury matches 100% of your pre-tax and Roth post-tax contributions to the plan up to 1% of your eligible pay and 50% of additional contributions up to 6% of your eligible pay, to support your retirement saving efforts.
Here’s how the company match works:
Meet the Match!
Try to contribute at least 6% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to your Fidelity account to increase your contribution rate.
Vesting is another way of saying “how much of the money is yours to keep if you leave the company.”
You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in company contributions over time, based on the following schedule:
It’s important to designate a beneficiary to receive the value of your Mercury 401(k) Plan account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit Fidelity to add or change a beneficiary.
The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit Fidelity or call 800-835-5095.
If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your financial future.
- Taking money from your account now may lead to a smaller savings balance when you retire.
- Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it even harder to get back on track.
- If you take a plan loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.
- If you withdraw pre-tax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left the company).
Rolling over an old workplace retirement plan, such as a 401(k), is easy with Fidelity. You can rollover your previous workplace 401(k) retirement plan online by following the online instructions, or by completing the 401(k) rollover form and mailing in a check directly to Fidelity (instructions below). For additional help, contact a Fidelity rollover specialist via chat or by phone at 800-835-5095.
Employees have the option of requesting a check from your previous workplace 401(k) retirement plan provider and then mailing the check along with the Fidelity 401(k) Rollover Form to Fidelity. Please use the information below when contacting your previous workplace 401(k) retirement plan provider to process the rollover to Mercury’s 401(k) Plan.
You will tell your previous workplace 401(k) retirement plan provider that the rollover check should be made payable to:
- “FIIOC” (Fidelity Investments Institutional Operations Company)
- FBO (for the benefits of): YOUR FULL NAME
Here is the additional information that does not have to be included:
Plan Name: Mercury General Corporation Profit Sharing Plan
Plan ID Number with Fidelity: 38219
401k Account Number: Your SSN
Once you receive the rollover check from your previous workplace 401(k) retirement plan provider, you will then complete the Fidelity 401(k) Rollover Form and mail together with the check to Fidelity to either one of the addresses below.
FIRST CLASS MAIL WITH STAMP:
Fidelity Investments
Client Service Operations
P.O. Box 770003
Cincinnati, OH 45277-0065
OVERNIGHT ADDRESS:
Fidelity Investments
Client Service Operations (KC1F-L)
100 Crosby Parkway
Covington, KY 41015
Please note, even though the rollover check is not payable to you, the Trustee will mail it to your home directly and not to Fidelity.
Please let your Mercury Benefits Team know if you need further assistance with any of the information above.
You will be able to check to see when rollover process is completed on your 401(k) account online at www.netbenefits.com