Wealth accumulation and financial security during retirement are top long-range objectives for most people. The BMC Software, Inc. Savings and Investment Plan (a 401(k) plan) gives you a distinct head start on reaching your financial goals. When you enroll in the plan, you elect to defer a certain percentage of your pay as a contribution to the plan. Your contributions may be made on a before-tax basis, after-tax basis, or through Roth 401(k) contributions. The plan’s combination of before-tax savings, company matching contributions and wide range of investment alternatives makes it one of the most attractive savings opportunities available.
You are eligible to enroll in the BMC 401(k) Plan on your date of hire. Once your new hire information is submitted to Fidelity and an account is set up, you can enroll at any time. You will see the change in your deductions in one to two pay periods.
To enroll in the BMC 401(k) Plan go to Fidelity NetBenefits® or call 1-866-546-4424.
You can contribute between 1% and 35% of your plan earnings to a before-tax or Roth account, up to the annual IRS dollar limit (for 2019 this limit is $19,000). In addition, you can contribute up to 10% of your plan earnings to an after-tax account. Plan earnings generally include many elements of cash compensation (such as base salary, short-term incentive, bonuses, overtime and commissions). If you are age 50 or older or will reach age 50 during the calendar year, you can make “catch-up” contributions to your account in addition to your regular contributions, up to the annual IRS dollar limit (for 2019 this limit is $6,000).
Please Note: The total of all contributions to your account cannot exceed $56,000. This includes any before-tax, Roth, after-tax and company matching contributions made to the plan (excluding catch-up contributions).
Enrolling in Your BMC 401(k) Plan
Log on to www.netbenefits.com or call Your Benefits Resources at 1-877-BMC-4849, (option Savings and Investments), or Fidelity directly at 1-866-546-4424 to enroll, to make your “catch-up” contribution election and/or to change any existing election.
Allow one week from your date of hire before calling. If you are a current participant, the changes will take effect within one to two pay periods.
The BMC 401(k) Plan allows you to make tax-advantaged contributions three different ways—to a before-tax account, a Roth 401(k) account or to an after-tax account. If you are wondering which contribution type is better for you— tax-deferred savings now (through the before-tax contributions), tax-free in the future (through the Roth feature) or defer taxes on earnings on after-tax money—look at the chart below. You can go to Fidelity NetBenefits® for more information on all of these options. You may also want to consult with a personal tax advisor about the path that might be best for you.
BMC helps your retirement savings grow by matching your before-tax or Roth contributions. BMC matches 100% of every dollar you contribute, up to 5% of your eligible pay each pay period.
Please Note: Company matching contributions are made each pay period with your payroll contributions. There is no company match on after-tax or catch-up contributions.
The BMC 401(k) Deferral Calculator is available on Fidelity NetBenefits® . This tool can help you determine your maximum contribution amount and help you maximize company contributions to your account. If you plan to contribute more than 5% of your eligible earnings, note that as soon as your contributions reach the annual IRS dollar limit ($19,000 in 2019), your contributions and matching contributions will end. In addition, when you reach the annual IRS dollar limit on earnings ($280,000 in 2019), your participation for the year will end.
Check your year-to-date contributions by reviewing your pay stubs or by going online to Fidelity NetBenefits and running a year-to-date statement. You can change your contribution rate at any time.
BMC matches 100% of every dollar you contribute, up to 5% of your eligible pay each pay period.
You are always 100% vested in your own contributions and in any earnings on those contributions. You will be 100% vested in the company matching contributions and earnings when you have reached two years of service.
The BMC 401(k) Plan includes a loan provision, allowing you to borrow money from your account. If you are in need of funds that aren’t readily available elsewhere, you can borrow up to 50% of your vested account balance or $50,000, whichever is less, minus the highest outstanding loan balance during the last 12 months. BMC 401(k) Plan participants who take loans from the plan will be responsible for associated administration fees.
Under limited circumstances, you can make withdrawals from the plan. You can make withdrawals at any time on your after-tax contributions made to the plan after
January 1, 2008. You can make withdrawals at any time on rollover funds from prior employer plans that you deposited into the BMC 401(k) Plan. In case of financial hardship, you may be eligible for a special hardship withdrawal of funds from your 401(k) account if you have previously borrowed money from your account.
To help you meet your financial goals, the plan offers you a range of investment options, including conservative, moderately conservative and aggressive options. The plan also offers the Vanguard Target Retirement Funds, each one offering a blend of stocks, bonds and short-term investments within a single fund. Each Retirement Fund’s asset allocation is based on the number of years until the fund’s target retirement date. The Target Retirement Funds are designed for investors who want a simple approach to investing for retirement.
If you do not choose an investment election, your contributions will default to the Vanguard Target Retirement Fund that has a target retirement date closest to the year you might retire based on your current age, assuming retirement at age 65, until you provide further investment instruction. You can learn more by contacting Your Benefits Resources at 1-877-BMC-4849, (option Savings and Investments), or Fidelity directly at 1-866-546-4424. For those who prefer a more hands-on approach to managing their account, the plan provides an individual brokerage option that permits purchases of a wide range of mutual funds plus individual stocks and bonds.
The Fidelity Portfolio Advisory Services (PAS)—an optional feature—puts your 401(k) account under professional investment management. There is an annual fee to maintain the account, and it varies based on your account balance.
Fidelity Investments can answer your financial questions and provide one-on-one support as you build a plan for your financial future. Call Fidelity at 1-800-603-4015 or visit a branch nearest you for a complimentary consultation.
If you have questions about the 401(k) Plan or need more information, take a look at the plan documents on My BMC Compensation & Benefits website, select the Plan Documents tile.