H&R Block offers associates working in the U.S. the opportunity to save for retirement through the Retirement Savings Plan (RSP), a 401(k) plan administered by Fidelity.
- All U.S. regular associates will be automatically enrolled in the Retirement Savings Plan, also known as the 401(k) plan.
- You will be enrolled at a 5% salary deferral rate effective the first of the month following or coincident with 90 days of employment.
- H&R Block provides a $1 for $1 pretax company match to your contributions — up to 5% of your total eligible compensation!
2022 IRS limits
- The associate pretax and/or Roth contribution limit is $20,500. If you are age 50 and older, you can contribute an additional $6,500 for a total of $27,000.
- The employer pretax contribution limit is $15,250. This is based on an employee compensation limit of $305,000 times 5%.
How the Retirement Savings Plan Works
Pre-tax or Roth after-tax contributions
You can contribute a portion of your compensation, up to the IRS maximum of $20,500, on either a pre-tax or Roth after-tax basis (or a combination of the two). If you are age 50 or older, you may contribute up to an additional $6,500. This would include any contributions to another employer's 401(k) plan.
Company Match
H&R Block currently provides a Company Match of $1 for each $1 you contribute, up to 5% of your total annual eligible compensation. All Company Match funds are deposited into a pre-tax account. The amount of your compensation that can be taken into account when determining employer and employee contributions is limited by the IRS to $305,000 in 2022.
100% vested
All of your contributions and the Company Matching Contributions are always 100% vested.
Investment options
This plan offers you the opportunity to select from several different investment options for your account. These options include mutual funds and an individual self-directed brokerage account.
Rollovers
Rollovers of eligible funds are allowed into your 401(k) account from certain other qualified plans.
How Do Roth After-Tax Contributions Work?
When you contribute to the RSP on a Roth after-tax basis, the money goes into your plan account after taxes are withheld.
In exchange for paying taxes now, both your contributions AND any earnings can be withdrawn tax-free in retirement, provided you meet two requirements for earnings:
- At least five years have elapsed since your first Roth contribution.
- You are at least age 59½ or the withdrawal follows death or total disability.
Access Your Account and Other Resources
Fidelity’s comprehensive website, NetBenefits provides a number of educational resources that can help. With NetBenefits, you can:
- Find historical investment option performance, articles about the financial markets and information about any new legislation affecting 401(k) plans and retirement accounts.
- Check out interactive tools and calculators to help you determine savings goals, and order prospectuses for the plan’s mutual fund options.
- Access self-paced workshops that provide tools and information you need to help make the most of the RSP. They are entirely self-directed so you can learn at any time and at your own pace.