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Walgreens 401k plan – what you need to know in 5 minutes!

Updated: 2 days ago

The Walgreens 401k Plan: Your Path to a Dignified Retirement


The Walgreens 401k plan is an essential part of the retirement benefits offered to employees. In this article, I’ll share the five major things you need to know to retire from Walgreens with the dignity you deserve!


But first – hello! I’m Charlie.


Walgreens Retirement

I help people retire in Chicagoland and across the country in a tax-efficient way. You may want to check out my other blogs about financial planning for people in Illinois and other places in the United States.


Here’s an overview of the Walgreens retirement benefits package that you can read in five minutes or less.


Let’s go!


The Walgreens 401k: A Quick Overview


When people talk about the Walgreens 401(k) plan, it’s a bit of a misnomer. The official name is the Walgreens Retirement Savings Plan. But whatever you call it, one simple fact remains: employees receive a fantastic set of benefits from Walgreens.


Before we dive in, I want to clarify that the information provided here is general guidance. It should not be interpreted as a recommendation specific to any individual. We are not providing tax or financial advice tailored to you in anything we’re about to discuss.


Okee dokie?


You betcha!


Traditional vs. Roth: Which is Right for You?


Walgreens employees enjoy a generous retirement program. This plan is available on both a Traditional and Roth basis. This flexibility is great, especially for high-earning employees! While Roth IRAs typically have income limits, Roth 401(k) plans do not.


Let’s break down how Traditional and Roth contributions into the Walgreens 401k plan differ.


Traditional 401(k)


Traditional 401(k) contributions come from your pre-tax earnings. The money grows on a tax-deferred basis. When you reach age 73, you must take Required Minimum Distributions (RMDs) as per IRS rules. These distributions are taxed at your ordinary income tax rate.


Roth 401(k)


Roth contributions are made with money that has already been taxed. Like Traditional contributions, Roth money grows on a tax-deferred basis. When you reach age 73, you must also take RMDs. However, since you’ve already paid tax on the money contributed on a Roth basis, no taxable event occurs.


Why the Walgreens Retirement Savings Plan is Fabulous!


Now, let’s get into some specifics about the plan:


  • Walgreens will match 4% of the amount you contribute, up to the IRS contribution limit. You become eligible for this match after one year of employment and working 1,000 hours. That’s fantastic!

  • They also match payments you make for your student loans, up to $3,000.

  • Matching contributions vest immediately, which is a great perk.

  • The plan is custodied at Fidelity. This means your assets will be held in an account in your name at Fidelity. Walgreens won’t take custody of your money.

  • The contribution limit for 2025 is $23,500. That’s the maximum amount you can contribute from your salary. If you’re over age 50, you can contribute an additional $7,500. The total cannot exceed $31,000.

  • You can access your plan through Fidelity NetBenefits.

  • When you retire or leave the company, you can roll the assets over into a Traditional or Roth IRA account or another Traditional or Roth 401(k) plan.


It’s also useful to note that some 401k plans may include Target Date Funds. These funds adjust their strategy over time based on your age and projected retirement date. While they may seem attractive, proceed with caution. Not all assumptions based on age are correct.


Have You Run the Numbers?


Whether you are a Walgreens cashier, executive, or somewhere in between, optimizing the company’s retirement benefits is crucial. As you can see, there are many dimensions to the Walgreens Retirement Savings Plan. It’s best to run the numbers and create a clear financial plan to guide you in this important decision.


My name is Charlie, and I help people retire in a way that minimizes what they pay to Uncle Sam, whether they are retiring in Illinois or elsewhere. I am a CPA and a financial planner. If you’d like to set up a time to talk about tax-efficient retirement planning for people in Illinois or elsewhere, please schedule a time.


Conclusion


In conclusion, the Walgreens 401k plan offers a robust set of benefits that can help you secure a dignified retirement. Understanding the differences between Traditional and Roth contributions is crucial. Make sure to run the numbers and create a financial plan that works for you.


Remember, your retirement is an important journey, and I’m here to help you navigate it!


Sources


Disclaimers


Focused Up Financial is not affiliated with Walgreens in any way. All information herein may be subject to change, and Focused Up Financial is not required to notify readers. All information herein reflects the views of Focused Up Financial and does not reflect the position of Walgreens.

 
 
 

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