401k Savings Plan Guide
User Manual:
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Page Count: 10
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Building
Your Future
with the Kohl’s
401(k) Savings Plan
Kohl’s supports planning for your financial future with increased confidence.
FINANCIAL
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YES. THE MOST IMPORTANT REASON YOU SHOULD START
SAVING NOW IS BECAUSE MOST OF THE MONEY YOU’LL NEED
TO RETIRE SOMEDAY WILL COME FROM YOU.
Social Security might provide some income after retirement. But chances are
it will be less than you need to live comfortably. And continuing to work may
not be an option. That leaves your personal investments, savings and other
assets to cover your expenses.
Saving as much as possible during your working years can help you achieve
your financial goals and retire. The sooner you start, the better off you’ll be.
The longer you wait, the more you may need to save. Saving today is a smart
decision you’ll thank yourself for tomorrow!
Me? Save for
Retirement?
WHERE WILL YOUR
FUTURE TAKE YOU?
It’s never too early to
start planning. And
there’s no better time
than right now to save
for your future in the
Kohl’s Department
Stores, Inc. 401(k)
Savings Plan. Enroll today
at myHR.kohls.com.
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01
START PARTICIPATING IN THE 401(k) SAVINGS PLAN
AND YOU’LL BE MAKING A CHANGE FOR THE BETTER.
HERE’S A RUNDOWN WHY.
1Kohl’s helps
you save
After completing one year of service, when you contribute, Kohl’s
contributes too! For every $1 you contribute, Kohl’s kicks in another $1,
up to 5% of pay. If you’re saving up to 5% of pay, matching contributions
can double your savings!
2It’s yours
to keep
Your contributions and Kohl’s matching contributions are 100% vested. If
you decide to leave the Company, your money and the Company’s
matching contributions are yours to keep.
3Pay less in
taxes today
Before-tax contributions are deducted from your pay before taxes are
taken out. This means that every dollar you contribute reduces your
current taxable income by a dollar. Paying less in taxes today and saving
for tomorrow too—it’s win-win!
4Grow savings
faster with
compounding
Compounding has been referred to as the Eighth Wonder of the World
for its ability to turn small investments into big money over the course of
time. Simply put ... compounding is when your interest begins to earn
interest. The key is to start early so your investment earnings have more
years to grow and work for you.
524/7 access to
your account
You can view your account, perform most transactions and take
advantage of easy-to-use online tools on the myHR.kohls.com
website 24 hours a day, seven days a week. And, if you need help,
representatives can assist you between 7 a.m. and 8 p.m. Central time,
Monday through Friday.
Five More Reasons to Save
Ready to Enroll?
Log on to the myHR.kohls.com website. You can also call
844-564-5747, select your preferred language, then select
Option 2. Representatives are available Monday through
Friday from 7 a.m. to 8 p.m. Central time.
For more information about getting started, see page 7.
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02 2018 401(k) Savings Plan Enrollment Guide
DECISION ONE:
How Much to Save
Your Contributions
You can save between 1% and 99% of your pay, up to the IRS limit of $18,500
for 2018. You contribute money from your paycheck before taxes are calculated.
That means you pay less in income taxes now. You won’t owe taxes on your
contributions, the company’s matching contributions or your investment
earnings until you take your money out of the 401(k) Savings Plan.
AGE 50 OR OLDER?
Increase Your Savings with Catch-Up Contributions: If you’re age 50 or older
(or will be by the end of the calendar year), you can save even more in the
401(k) Savings Plan through catch-up contributions: up to an additional $6,000
in 2018. Catch-up contributions are invested the same way as your before-tax
contributions.
Kohl’s Contributions
When you save, Kohl’s gives your savings a boost through matching contributions.
For every $1 you contribute, Kohl’s adds another $1, up to 5% of each paycheck.
Contributing at least 5% is a smart, easy way to grow your savings even faster.
Company matching contributions begin after you have one year of service and are
invested the same way as your before-tax contributions.
ADD IT UP:
Saving $20 per paycheck today could grow to $6,232 in 10 years and $33,426
in 30 years.
Assumes continuous annual savings amount of $480, a 5% investment return, and no loans
or withdrawals.
WHEN YOU CAN START SAVING
Full-time associates are immediately eligible to enroll, and matching
contributions will begin after one year of service.
Part-time associates are eligible to enroll and earn matching contributions
after completing at least 1,000 hours of paid service (within the first
12 months of employment or any calendar year after that).
For additional details, please refer to the Summary Plan Description
located on myHR.kohls.com.
HOW MUCH
SHOULD YOU SAVE?
The exact number
you’ll need varies
based on when you
plan to retire and the
lifestyle you plan to
have in retirement.
For some help
planning ahead, check
out the Real Future
tool on page 6.
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03
TIP:
Did you know LifeSolutions,
Kohl’s Employee Assistance
Program (EAP), offers
budgeting resources to help
you save? Discover how to
save for tomorrow by cutting
a few extra expenses today.
For more information about
LifeSolutions, visit
lifesolutions.
guidanceresources.com, then
enter KOHLS0306 as the
Organization Web ID under
Register.
WE GET IT—A LOT OF THINGS MIGHT BE COMPETING FOR
YOUR MONEY, AND SAVING FOR THE FUTURE MIGHT BE
AT THE BOTTOM OF YOUR LIST. BUT YOU DON’T HAVE TO
MAKE BIG CHANGES TO FIND WAYS TO SAVE.
Maybe you replace your daily jumbo latte with a regular coffee or make
coffee at home. Or you eat out a little less.
Even Small Changes Add Up.
The more you contribute to the 401(k) Savings Plan, the better your
retirement picture will look. Even if you can’t save that much today,
saving a little bit more now and making regular increases along the way
can make a big difference down the road. Here are a few examples of
how your money could be better spent in the 401(k) Savings Plan:
Small Changes Add Up to Big Savings
10 downloads
per month ($1)
2 movies per
month ($10)
1 dinner out per
month ($40)
1 bottled water
per day ($2)
If you don’t buy ten
downloads per
month ($1), you save
$10 each month:
If you don’t buy two
movies per month
($10), you save $20
each month:
If you don’t buy
one dinner out per
month, you save
$40 each month:
If you don’t buy one
bottled water per
day ($2), you save
$60 each month:
$1,553
Potential Value
in 10 Years*
$3,106
Potential Value
in 10 Years*
$6,211
Potential Value
in 10 Years*
$9,317
Potential Value
in 10 Years*
$4,110
Potential Value
in 20 Years*
$8,221
Potential Value
in 20 Years*
$16,441
Potential Value
in 20 Years*
$24,662
Potential Value
in 20 Years*
*Assumes a 5% annual rate of return.
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04 2018 401(k) Savings Plan Enrollment Guide
DECISION TWO:
How to Invest
ONCE YOU DECIDE TO START CONTRIBUTING TO THE 401(k)
SAVINGS PLAN, YOU’LL NEED TO DECIDE HOW TO INVEST
YOUR SAVINGS AND KOHL’S MATCHING CONTRIBUTIONS. WHEN
YOU’RE CHOOSING YOUR INVESTMENTS, IT’S IMPORTANT TO
THINK ABOUT WHEN YOU’LL START USING MONEY FROM
YOUR SAVINGS.
• IF YOU’RE IN YOUR 20s OR 30s AND JUST STARTING YOUR CAREER, you’ve
got more time to save and invest than someone who’s getting ready to retire.
Depending on your comfort level with risk, you may be more interested in
investments like stocks. Stocks have more risk, but they also have the potential
for higher returns. At this age, your money also has more time to grow through
compounding.
• AS YOU GET CLOSER TO RETIREMENT AGE, your goal may be to protect your
savings. That’s when you might want more conservative investments such as
bonds and stable value funds. These investments have lower potential returns
in exchange for lower levels of risk.
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05
LEAVE IT
TO THE
PROS:
Invest in a Target
Retirement Fund
HOW IT WORKS:
You invest in a single Target Retirement Fund with the
target date closest to the year you’ll retire. Each SSgA
Target Retirement Fund is a professionally managed,
diversified mix of funds. Each fund becomes more
conservative as you get closer to retirement age.
THIS PATH MIGHT BE RIGHT FOR YOU IF:
• You want to simplify investing.
• You feel more confident knowing that a professional
investment manager is selecting and monitoring
your investment mix.
• You want to have a retirement strategy that will
automatically become more conservative as you
approach retirement age.
DO IT
YOURSELF:
Invest in Core Funds
HOW IT WORKS:
This path offers the maximum choice and flexibility.
You choose your own diversified investment mix from
the Core Funds. You decide how much to invest in
each fund. And you adjust your investment mix over
time to keep your investments in balance.
THIS PATH MIGHT BE RIGHT FOR YOU IF:
• You’re willing to commit time and/or you want more
choice and flexibility.
• You feel comfortable choosing your own
investments.
• You understand enough basic investment concepts
to feel comfortable making informed investment
decisions.
Choose Your Investment Path
The 401(k) Savings Plan offers two choices for investing: you can let a
professional choose and monitor your investments, or you can choose and
monitor your investments yourself. An easy way to decide which path is right for
you is to ask yourself this—when it comes to investing:
• Do I have the time, interest and knowledge to research my investment options,
create my own portfolio and adjust it over time; or
• Do I want to have a professionally managed investment portfolio with a risk
level related to a targeted retirement date?
WHY
DIVERSIFICATION
MATTERS
“Diversification”
means spreading
your savings among
more than one type
of investment. This
helps you minimize
the risk of losses
and protect your
money.
The Target
Retirement Funds
are already
diversified. They’re
invested in different
types of stocks,
bonds and stable
value investments,
based on when you
want to start using
your money. If you
decide to manage
your own portfolio
and invest in Core
Funds, it’s up to you
to choose how to
diversify your
investments.
Keep in Mind:
Your life, your savings goals and your retirement goals will probably change over
time. So, no matter which path you choose, you’ll need to review your choices at
least every year to make sure they’re still right for you. And, you can change
your investment choices at any time. Investing involves risk and your account
may lose value. A diversified investment mix will help you ride out the highs and
lows of the stock market.
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06 2018 401(k) Savings Plan Enrollment Guide
EVERYTHING’S A LOT EASIER WITH THE RIGHT TOOLS, INCLUDING PLANNING
FOR RETIREMENT. TAKE ADVANTAGE OF THESE TOOLS TO HELP YOU GET
WHERE YOU WANT TO GO. YOU CAN ACCESS ALL OF THESE TOOLS
THROUGH THE MYHR.KOHLS.COM WEBSITE.
WANT TO SEE WHAT YOUR
RETIREMENT COULD LOOK
LIKE?
Use the Real Future interactive
modeling tool to see how small
changes could make a big
difference for your retirement.
NOT A FINANCIAL EXPERT?
No problem! The Financial
Education Center contains
a library of information on a
number of financial topics. You
can easily access the topics that
are important to you.
WANT TO SAVE MORE
OVER TIME?
With Automatic Contribution
Escalation, your contributions will
automatically increase each year
by an amount you select until you
reach your target savings rate.
TOOLS TO PUT YOUR
Future in Focus
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Ready to Enroll
First, decide how much to save. Remember, if you’re not contributing at least
5%, you’ll be missing out on the opportunity to maximize Kohl’s matching
contributions once you’re eligible. Those extra dollars can make a big difference
for your future.
Then, decide how to invest (check out your investment options on pages 4 and
5). To get started, log on to the myHR.kohls.com website using your Kohl’s
network ID and password. You can also call 844-564-5747, select your preferred
language, then select Option 2. Representatives are available Monday through
Friday from 7 a.m. to 8 p.m. Central time.
GO PAPERLESS.
Want to get your Kohl’s Total Rewards information electronically? You can
choose to add a preferred email address when registering
NEED HELP GETTING STARTED?
Quick Enrollment is the easiest way to get going in the 401(k)
Savings Plan. By selecting Quick Enrollment, you:
• Enroll at a 5% before-tax contribution rate;
• Invest in the age-appropriate Target Retirement Fund; and
• Have your before-tax contribution amount automatically
increase 1% each year until you reach a 10% contribution rate.
You can make changes to these elections at any time in the future.
07
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