⏩ Walmart 401K Plan (Walmart 401K Plan)
Walmart is the biggest employer in America, with more than 2.3 million employees worldwide and almost 1.6 million here in the United States.
You might be interested in the Walmart 401k, whether you are considering a Walmart job, have worked there before, or want to learn more about how Walmart treats its employees.
This article will explain Walmart 401(k), how it contributes to employees’ retirement accounts, as well as how you can invest your Walmart 401(k).
⏩ What is Walmart’s 401k Plan?
Like most large corporations, Walmart offers a 401k plan to assist its employees in saving for retirement. Employees can contribute up to half of their income to a Roth or traditional 401(k), or any combination thereof, up to the limits.
The 401(k) plan can be accessed by employees as soon as the date of their hire has been entered into the payroll system.
Walmart 401k plan offers a wide range of investment options. The two options available to employees are: Employees can choose to invest in the “one-choice,” a fund that targets the year they plan to retire. Employees can also choose from a variety of investment options. There are many investment options available.
- ✅ BlackRock Money Market Trust
- ✅ JPMorgan Short Term Bond Trust
- ✅ Bond Fund
- ✅ Real Assets Fund
- ✅ BlackRock Russell 1000 Index Trust
- ✅ Large Cap Equity Fund
- ✅ Small Mid Cap Equity Fund
- ✅ BlackRock Russell 2000 Index Trust
- ✅ International Equity Fund
What Is Walmart’s 401K Retirement Plan?
Walmart’s retirement plan 401(K) is managed by Walmart to benefit its employees.
Employees must use their OneWalmart accounts to enroll in the program by entering their employee details and choosing a value from their paycheck to be filtered into 401(K).
Employees can transfer money from their previous retirement plans to the program when they apply for it.
How Is The Walmart 401K Retirement Plan Funded?
Employees can opt to have a portion of their monthly wages transferred directly to the 401(K).
Walmart will add $ to every dollar an employee contributes to the plan. This could amount to up to 6 percent of eligible pay.
The more money left in the plan, you can earn towards retirement.
Employees can change the amount they contribute to their 401(K) and withdraw funds whenever they want.
⏩ The Walmart 401k Plan
|Find What You Need||Online||Other Resources|
|Enroll in or change your 401(k) contribution
and your catch-up contribution
|Go to the WIRE, WalmartOne.com or
the Plan’s website at benefits.ml.com
|Call the Customer Service Center at
|•👉 Request a rollover packet to make a rollover
•👉 Get a fee disclosure sheet
•👉 Get information about your Plan accounts
•👉 Get a copy of your quarterly statement
•👉 Request a hardship withdrawal or a
withdrawal after you reach age 59½
•👉Change your investment fund choices
•👉 Request a payout when you leave Walmart
•👉 Get information about your Plan investment
•👉 Request a withdrawal of your rollover
•👉 Request a loan from your Plan account
|Go to benefits.ml.com||Call the Customer Service Center at
|•👉 Designate a beneficiary||Go to the WIRE or WalmartOne.com|
⏩ Walmart 401K Plan: Defined Contribution Plan in United States, North America
Walmart 401(K) Plan (Walmart401K Plan) was established in 1997. It is a Defined Contribution Plan located in Bentonville, AR, United States. Walmart 401K Plan’s current assets are $35,037 367 515. SWFI also has nine periods of historical assets that can be exported as CSV.
⏩ Walmart 401K Plan Details
|Name:||Walmart 401K Plan|
|Legal Name:||Walmart 401(K) Plan|
|DBA:||Walmart 401K Plan|
|Type:||Defined Contribution Plan|
⏩ Walmart 401K Plan Contact Information
|Address:||508 SW 8th Street, Bentonville, AR 72716-0295|
⏩ Walmart 401K Plan Asset Allocation
|Public Equity||Segment percentages and amounts available on swfi.com|
⏩ What you need to know about the Walmart 401(k) Plan
- 👉 After your date of employment is entered into the payroll system, you are eligible to contribute to the Plan. Contributions to the Plan can be made from 1% to half of your paycheck.
- 👉 If you have earned at least 1,000 hours of service in your first year and contribute to your 401(k), you will be eligible for matching contributions. Matching contributions are not available for contributions made before you become eligible.
- 👉 After you are eligible for matching contributions up to 6% of your annual salary, the matching contribution will be a dollar-to-dollar match.
- 👉 100% of the money you contribute to Your401(k) Account and Walmart’s money to your Company Match account will be yours.
- 👉 All contributions to your account are yours to invest in, even your Company Match Account.
- 👉 If you don’t choose how your contributions to the Plan are invested, they will automatically be invested in the Plan’s default investment option, currently the retirement funds.
- 👉 Until you receive a payment from the Plan, there is no federal income tax due to contributions or investment earnings.
- 👉 Your account can be accessed and monitored at any time at benefits.ml.com
- 👉 You can withdraw your rollover contributions anytime after February 1, 2016. You can also request a loan from the Plan account. These loans are subject to the following requirements.
Below is a summary listing of the benefits available under the Plan as of October 1, 2015. If you have any questions about the nature or extent of your benefits, this summary will not be able to answer them.
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⏩ Walmart 401(k) Plan eligibility
- ✅ ASSOCIATES WHO ARE ELIGIBLE TO PARTICIPATE IN THE PLAN
- ✅ WHEN PARTICIPATION FOR SALARY DEFERRAL PURPOSES BEGINS
- ✅ WHEN PARTICIPATION FOR MATCHING CONTRIBUTION PURPOSES BEGINS
- ✅ HOW HOURS OF SERVICE ARE CREDITED UNDER THE PLAN
👉 ASSOCIATES WHO ARE ELIGIBLE TO PARTICIPATE IN THE PLAN
The Plan is open to all associates of WalMart Stores Inc. and any participating subsidiary except:
- ✅ Nonresident aliens without income from the U.S.; leased employees; independent contractors and consultants
- ✅ Anybody not considered an employee by Walmart or any of its subsidiaries.
- ✅ Associates are covered by a collective bargaining arrangement, except where it does not include participation in the Plan.
- ✅Associates represented by a representative of collective bargaining after Walmart has reached an agreement in good faith with the representative regarding the issue of benefits.
All participating subsidiaries are called “Walmart” for this Summary Plan description.
👉 WHEN PARTICIPATION FOR SALARY DEFERRAL PURPOSES BEGINS
Eligible associates may contribute to this Plan as soon after they have been hired into the payroll system. You can sign up on WalmartOne.com or the WIRE to begin contributing to the Plan (see enrolling in the Plan later).
👉 WHEN PARTICIPATION FOR MATCHING CONTRIBUTION PURPOSES BEGINS
If you are an eligible associate and have accumulated at least 1,000 hours of service in the first year, matching contributions will be made to your 401(k).
Matching contributions are not available for contributions made before you are eligible for matching contributions. If your hire date is December 15, 2014, and you have 1,095 hours credited by December 15, 2015 (your first year), you will start receiving matching contributions beginning January 1, 2016. This applies to all contributions made to the Plan after or on top of that date.
If you do not have 1,000 hours of service credit, you can receive matching contributions for any contributions made to the Plan after February 1, after the first Plan Year (February 1-January 31).
In which you have been credited with at most 1,000 hours of service. If, for example, your hire date is December 15, 2014. You are credited with 595 hours on the first anniversary. However, if you work 1,095 hours between February 1, 2015, and January 31, 2016, you will start receiving matching contributions from February 1, 2016.
👉 HOW HOURS OF SERVICE ARE CREDITED UNDER THE PLAN
Hourly associates are paid for the following hours of service:
- 👉 Hourly associates at Walmart or any other subsidiary count towards the 1,000-hour requirement.
- 👉 Also included are paid vacations, sick time, and personal time.
- 👉 Hours are credited according to the Plan year. Hours for payroll periods that overlap years before February 1, 2015, are divided between the years. The actual hours worked each day are added to the total on and after February 1, 2015.
Hours of service are awarded to salaried associates or truck drivers as follows:
- 👉 For every hour worked at Walmart or its subsidiary, truck drivers and salaried associates are eligible for 190 hours each month.
- 👉 To have 1,000 hours credit for the year, you must work at the minimum six-month mark. You will not receive an additional 190 credits for vacation pay after leaving Walmart.
Special service crediting rules might apply to associates who became Walmart associates due to the acquisition of their previous employer.
Veterans who have served a qualifying deployment and return to Walmart may be eligible for their military service to count towards their service hours under the Plan U.S. Uniformed Services Employment and Reemployment Right Act of 1994 (USERRA).
For more information, contact Benefits Customer Service at 1-800-421-1362 if you feel you might be affected.
⏩ Walmart’s 401(k) Contribution Matching
Like many other companies, Walmart offers an employer contribution that helps employees save for retirement. Walmart provides a generous match — This promise will match employees’ 401k contributions dollar for dollar up to 6% of their pretax income.
Walmart’s 6% contribution match stands out when compared to other companies. A 2020 study found that most companies offer match amounts between 3% to 5%. The average match is 4.5% of an individual’s income.
Walmart offers a better match for 401(ks) than many companies. It beats some of its largest competitors. Target, for example, offers up to a 5% match to its employees. Amazon’s employer match is just 2% of an employee’s income.
Walmart has a great vesting policy for their 401(k). Employers often have an extended vesting policy, which means that employees must work for the company for a certain amount of time before they are eligible for the employer match. Walmart employees have 100% equity in their 401(k), which allows them to contribute and receive the match.
⏩ Your Walmart 401(k) Plan accounts
Walmart 401(k) Plan has several accounts. You can use these accounts:
- 👉 Your 401k Account: This account contains your contributions to the Plan, including your catch-up contributions. It is adjusted for earnings and losses.
- 👉 Company match Accou This account holds Walmart’s matching contributions, adjusted for earnings and losses.
- 👉 Rollover Account for 401(k). This account holds contributions you have rolled over from an eligible retirement plan to this Plan. These contributions are adjusted for earnings and losses.
- 👉 Company-Funded 401 (k) Account: This account contains the discretionary company contributions to the 401 (k) portion for Plan years ending on or before January 31, 2011. These contributions are adjusted for earnings and losses.
- 👉 Company-Funded Profit Sharing Account This account holds the discretionary company contributions to the profit-sharing portion of the Plan for Plan years ending on or before January 31, 2011. These contributions are adjusted for earnings and losses.
Below is a summary of some differences between the accounts. This summary will discuss these differences in greater detail.
⏩ How do I check my Walmart 401k?
⏩ How Much Should You Contribute?
Walmart’s 401k plan allows employees to contribute as low as 1% and 50% of their salaries. How do you choose the right amount to contribute?
First, make sure you contribute enough to qualify for Walmart’s 6% employer match. It’s free money, after all. Walmart will match the $3,000 you contribute to your 401k plan. However, it must not exceed 6% of your annual income. It’s a guarantee that you will get a 100% return on your investment.
Walmart won’t match contributions exceeding 6% of your salary, but you might still want to contribute more. Your employer match means that you contribute 12% of your annual income to your 401k plan. However, this may not be enough to provide a comfortable retirement depending on your circumstances.
The Personal Capital Retirement Planner will help you determine how much to save based on your retirement savings and the income you want during retirement.
You can contribute up to $19,500 each year to your 401k plan. You can also contribute up to $6,000 to an individual retirement plan (IRA) if your 401k contributions have been exhausted. Depending on your income, you might be able to contribute to either a traditional IRA or a Roth IRA.
⏩ How Should You Invest?
You will need to make a few choices when you sign up for Walmart’s 401(k). First, decide whether you want to contribute to a Roth or traditional 401(k).
Contributing to a traditional 401(k) 401(k) contributes with pre-tax dollars. You reduce your taxable income and your tax burden for the current year. You’ll be tax-deferred the growth of your 401(k), while you will pay income taxes for any money you withdraw in retirement.
Roth 401(k) allows you to contribute after-tax dollars. Your contributions do not reduce your taxable income. The money you contribute grows tax-free in the account, and you can withdraw it without paying any taxes.
Consider your current income and the future when deciding between Roth or traditional contributions. A traditional 401(k), which is more favorable for people who expect a lower tax rate in retirement, is better than a Roth401(k). This is because Roth 401(k), on the other hand, is better for people who anticipate having a higher tax rate in retirement.
Walmart does not currently offer Roth convert. If you decide to change your mind, you might need to use a Roth IRA later on to convert your money.
When you sign up, the next decision is which fund you wish to invest in. You have two options: either choose from the target-date funds offered or invest in your funds.
There is no one right answer. You’ll need to choose which option is more appealing. Target-date funds have the advantage of matching your retirement year and adjusting their holdings accordingly. It is easy to make your contributions and not worry about investments.
The target-date fund may be more hands-off than the other options, but it’s not for everyone. Some investors prefer to make their investments, particularly if they have a higher risk tolerance than most investors.
You might decide that you are willing to take high risks and want a retirement fund mainly stock. You might be more cautious and want to invest in safer assets than the target fund.
You don’t have to choose one option or another forever. You have the right to change your mind at any time.
⏩ What Happens to Your Old 401(k) If You Quit?
There are several options available to you if you decide to leave Walmart. You can leave the money alone and allow your investments to grow in Walmart’s plan 401(k). Walmart will not allow you to make additional contributions. However, the money in there will grow.
You can also roll the 401k balance to a different plan or an IRA. These options offer several benefits. Moving your money into another account will allow you to keep your entire retirement savings in one account rather than having to track each employer’s 401(k).
Rolling the money into an IRA gives you more control over your investments. You don’t have to stick to a list that your employer provides. Instead, you can invest in any area you choose.
You can also cash out your 401k and receive a check for the entire balance when you quit your job. This is an option, but not one that I recommend. You’ll have to pay income taxes and a 10% penalty. You’ll also have less money to live on in retirement because that money won’t grow with compound interest.
⏩ Can You Roll Over an Old 401(k)?
You can transfer a 401k to your Walmart retirement account from a former employer. The plan administrator will handle the rollover process. Merrill Lynch Customer Service can help you set up a rollover at 888-968-4015.
⏩ Walmart 401k: The Pros & Cons
We’ll talk about maximizing the positives while minimizing the negatives about Walmart 401k.
👉 Pro: Low-Cost Funds
Your investment fees are directly tied to your investment returns. Portfolio A would invest in the same stocks as portfolios, expecting similar returns. Portfolio A will charge 1.5%, while portfolio B will charge.25%. The returns will reflect that.
A small percentage difference can become a significant amount over time when compound interest is used. If a 25-year old invests $24,000 each year for 30 years, they will see incredible results. They can earn nearly $3 million if they earn 8% each year. They will have less than $2.5 million if they don’t pay any investment fees or pay 1% more.
This is why we don’t want merely to index client portfolios but also because of it. Over time, earning an additional 50-100 basis points can add up to a significant amount. We tend to tilt our portfolios towards historically outperformed factors while still trying to keep portfolio costs low.
👉 Pro: Enough Funds to Build Custom Portfolios
Retirement single-fund solutions are a great choice. The downside to many target-date funds is overexposure to large U.S. stocks.
Many funds offered to U.S. investors do the same thing as asset managers in other nations: they overweight their portfolios to stocks based abroad.
A portfolio that consists of 60% U.S. stocks and 40% international stocks is closer to the current market capitalization for all stores.
Building your portfolio will make you more inclined towards small caps if you believe that large caps will outperform small caps over long periods.
If you are looking for more exposure to international stocks and small caps, the Walmart 401k can help you build one. Compare the below allocation with the 2050 MyRetirement Fund.
These two portfolios are very different.
👉 Con: No After-Tax (Mega Backdoor Roth) Contributions
This con is huge.
This is such a huge con that I would be surprised if Walmart didn’t make a change to 401k providers within the next two years.
I wrote a post about the huge backdoor Roth here. Let me briefly describe it below.
You can contribute $19,500, plus $6,500 over 50, either pre-tax or Roth, to a 401k. However, this is not the IRS maximum limit. The 402(g IRS limit is applicable.
The IRS also has a second limit, the 415(c), limit of $58,000 (plus $6500 for those over 50). There are three ways to reach $58,000
- 👉 You contributed $19,500 towards the Walmart 401k
- 👉 Walmart will match $10,000 up to 6% of your income. I’m just randomly choosing a number. It will depend on your income.
- 👉 After-tax contributions are allowed. You can then put $28,500.
The Walmart 401k doesn’t allow for the third. This has been a common practice in large Walmart companies over the past few years. Walmart will likely follow the example of other large companies in this area. As I said earlier, I’m surprised that Fidelity doesn’t win the Walmart contract for 401k within the next 2 to 3 years.
This could mean double the amount of money going into your 401k each tax year.
It gets even better. The after-tax contributions can be converted to the Roth 401k each year. You’re not only investing $58,000 annually. You are investing $58,000 in a tax-friendly manner.
You can reach 60 years old with $5M+ of investable assets, even if your income is not very high. It’s also how you retire earlier than others.
⏩ FAQ About Walmart 401k Plan
👉 Does Walmart Have A Retirement Plan In 2022?
Walmart has a flexible and large retirement plan. Walmart has its own 401(K) retirement plan, managed by employees. This account helps them keep track of their money and earn interest from Walmart.
👉 Does Walmart have a good 401k plan?
Although saving for retirement can seem daunting, you can do it with some effort and support. The Walmart 401(k) Plan is a great way to get started. After you have been with Walmart for a year, Walmart will give you an additional dollar up to 6 percent of your eligible wages for each dollar you make.
👉 What happens to my 401k if I leave Walmart?
Your account in the401(k) plan will continue to receive earnings and losses until you receive your total payout. After your termination, you may not be able to continue participating in the 401k Plan. However, your account will remain in the Plan until your total vested Plan balance is paid.
👉 Can I cash out my Walmart 401k?
If you have a Walmart (401(k), and you are impacted, you will be able to: Withdraw upto $100,000 without paying the usual 10% penalty; and pay federal income tax for up to three years instead of 20% immediately.
👉 Do you lose your 401k if you get fired?
Although you are 100% vested in your contributions, you will usually need to wait several years before fully accessing company contributions. If you are fired, you lose your right to any unvested money in the 401(k).
👉 Does Walmart have 401k for part time employees?
The hourly rate for full-time and part-time associates is $19.52 an hour, taking into account overtime and regular pay, match, healthcare, associate discount, paid hours off, and quarterly bonuses.
👉 How does 401k work?
Employers offer a 401(k), a retirement savings plan, and an investment plan. Employees can get a tax break for money contributed to a 401(k). Employee contributions are taken from their paychecks automatically and invested in funds that the employee chooses (from a range of options).
👉 What 401k plan does Walmart use?
Go to WalmartOne.com/Enroll or the WIRE and select “I want to contribute to the Walmart 401(k) or the Associate Stock Purchase Plan.” Or, visit Benefits OnLine at benefits.ml.com or call Merrill Lynch at (888) 968-4015.
👉 What happens to my 401k if I quit Walmart?
Your 401(k) Plan account will continue being credited with earnings and losses until you receive a payout. After your termination, you may not participate in the 401k Plan. However, your account will remain in the Plan until your total vested Plan balance is paid.
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Hey, my name is Noah. We’ve done a lot of research on it by visiting different Walmart stores; My goal is to provide you with accurate information about the services offered by Walmart and their benefits.