Hobby Lobby's 401k Retirement Plan
"She considers a field and buys it; out of her earnings she plants a vineyard." Proverbs 31:16 ESV
Does Hobby Lobby offer a 401k?
Yes, Hobby Lobby does offer a 401(k) plan to employees. The Hobby Lobby 401k plan is a retirement savings plan that allows employees to save and invest a portion of their salary. Retirement savings in the Hobby Lobby 401k can be directed into long-term investment choices in the plan to grow over time.
Money you save in the Hobby Lobby 401k helps reduce your taxes right now by lowering the amount of your income eligible to be taxed by the IRS. Investment earning and gains in the 401k are tax-deferred. This means you only pay taxes down the road when you decide to withdraw money, hopefully in retirement ,from your 401k. The opportunity for compound interest combined with the tax benefits of your 401k can be powerful.
The Hobby Lobby 401k Match
Hobby Lobby offers eligible employees a matching contribution when you put money in your 401k. A company match means that when you contribute, Hobby Lobby will also put money into your 401k. How much Hobby Lobby puts in or matches, like the name suggests, depends on what you put in. When you choose to withhold 1-3 percent of your paycheck, Hobby Lobby matches 100%. In other words, for every dollar you put in, the company puts a dollar in as well. If you do more and choose to withhold 4-5 percent of your paycheck, Hobby Lobby matches 50%. on that portion. In other words, for every dollar you put in, the company puts 50 cents in as well.
Keep in mind there are maximum limits on how much you can put in a 401k each year. Highly compensated employees should keep an eye on the limits and consider seeking assistance to plan for this possibility. Also note that once you reach the age of 50, the amount you can contribute toward the plan goes up. This is known as a "catch-up" contribution.
The Hobby Lobby 401k Match System
|Your Paycheck Deduction||Hobby Lobby Matches|
A Matching Example
A Hobby Lobby employee has eligible compensation of $100,000. They decide to elect a paycheck deduction of 10%. This results in $10,000 deducted from the employee's paycheck over the course of the year and contributed to the 401k. It also results in a match of $4,000 from the company that is also contributed to the 401k. In total, $14,000 goes toward this individual's retirement in this one year.
|Money Source||Dollar Amounts|
|Employee Paycheck Deduction||$10,000|
|Total Contribution for the Year||$14,000|
Want some help?
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About Intrepid Eagle Finance
Intrepid Eagle Finance specializes in Faith-Based Financial Planning. We specialize in working with Christian families to balance what's truly important with the financial part of life. By focusing our service on these families, we're able to help with the unique challenges families like yours face. Whether it's balancing the financial impact of homeschool, paying for college, or figuring out a 401k at work, we help our client families organize their financial life with purpose. Click here to learn more about how we are unique in our approach to financial help.
This information is educational in nature and does not constitute financial , tax, or legal advice. No action or financial decision should be taken based on this document alone. Intrepid Eagle Finance is not affiliated with, endorsed by, or in any other way associated with Hobby Lobby Stores Inc. or their affiliates. Intrepid Eagle Finance provides information on Hobby Lobby benefits such as the 401k plan, but encourages Hobby Lobby employees to contact their employer for specific benefits assistance. While a reasonable effort is made to provide accurate information, Hobby Lobby Inc. or their affiliates may make changes we are unaware of and therefore we cannot guarantee this information is up to date at all times.