401(k) Q&As

How do I know if I am eligible for the 401(k) Plan and the match?

Every employee who is eligible for the 401(k) Plan is also eligible for the company match.  In general, if you have worked for McClatchy for six months and worked at least 375 hours during a six-month period, then you are eligible to participate in the 401(k).  You can also contact Vanguard or your local People team to verify your eligibility.

How do I enroll in the 401(k)?

Our 401(k) program is managed by Vanguard.  Once you become eligible for the McClatchy 401(k) Plan, Vanguard will automatically create an account for you.  For those who already have a Vanguard 401(k) account, you can enroll by accessing your account online at vanguard.com or by calling Vanguard at 800-523-1188.  If this is your first time accessing your account, you will need to know the plan number: 098630.

What % do we match?

The company will match 1/3 of the first 6% of pre-tax contributions you make to the plan.  See below for examples:

Example 1 Example 2
Eligible Earnings $1,000 $1,000
Pre-Tax Contribution % 3% 6%
Pre-Tax Contribution $ $30 ($1,000 x 3%) $60 ($1,000 x 6%)
Company Match $10 ($30 x 1/3) $20 ($60 x 1/3)
What % do I need to contribute to maximize match?

You can maximize your company match by contributing at least 6% of your eligible earnings.  If you contribute more than 6%, the company will only match the first 6% of your contributions.

What are eligible earnings?

Under the 401(k) plan rules, eligible earnings generally include your regular wages, sick or vacation pay, and sales commissions.  Other types of compensation such as overtime, bonuses or shift-differentials are not considered eligible earnings.

How will I know my match amount?

The company match amount will be reflected on your payroll advice each pay period.  You can also see an accounting of your matching contributions online at vanguard.com.

What is vesting?

Vesting refers to non-forfeitable ownership of the money in your account.  You are always 100% vested in your own contributions to the 401(k). Generally, you are 100% vested in the company matching contributions after having earned three vesting years since your hire date.  You earn one vesting year for each calendar year that you work at least 750 hours. If you do not have three years of vesting service, then you are 0% vested in the company matching contributions.

There are different vesting rules for individuals who were participants in the McClatchy or Knight Ridder 401(k) Plan before the two plans merged in 2009.  Generally speaking, if you have been a full-time employee since 2009, then you are likely 100% vested.

How do I know if I am vested?

You can verify whether you are vested by accessing your Vanguard account at vanguard.com.

What happens to my matching contributions if my McClatchy employment ends?

If you terminate employment and you are 100% vested, then you keep any employer matching contributions in your account.  If you terminate employment and you are 0% vested, then you forfeit all company contributions upon termination.

Will the company match my “catch up” or “after-tax” contributions?

No, the match only applies to the first 6% of your pre-tax contributions.

How often can I change my contribution percentage?

You can change your contribution percentage as often as each pay period.  Visit vanguard.com or call Vanguard at 800-523-1188 to make changes to your account.  You must make any changes by Thursday of the week prior to payday.

How often do I get the match?

You will receive the company match each time you receive a paycheck and make a pre-tax contribution to the 401(k).  The match amount will be listed on your paycheck advice and will typically be deposited into your account at Vanguard the following calendar week.

How is my match invested?

Your company matching contributions will be invested in the same way (i.e. allocated to the same mutual funds) as your own pre-tax contributions are invested.  You can change the allocations or mutual funds by contacting Vanguard.

Are company matching contributions taxable?

No, you are not taxed on company matching contributions at the time they are made.  Similar to other pre-tax contributions, you will be taxed on any matching contributions when you withdraw the funds from your 401(k).

Previously, the employer match was 2/3 of the first 6%. Will the match increase in the future?

We are hopeful that the company will be able to increase the match percentage at a later date, but feel this is a great step in the right direction, and we are committed to increasing the match percent as the company’s financial position further improves.

How much can I contribute to the 401(k)?

If eligible for the 401(k), you may contribute a combined total of 50% of your eligible earnings into a pre-tax and/or after-tax account, subject to IRS limits.  

Still have questions?

Contact Vanguard at vanguard.com or by calling 800-523-1188.  You can also contact your local People representative or email 401k@mcclatchy.com.