Savings & Retirement
Thrift 401(k) Plan
When you invest in Kraft's Thrift 401(k) Plan with before-tax dollars, your investment and earnings grow tax-free until you withdraw them. It's a smart way to save and invest for your future.
Take full advantage of all the great Thrift 401(k) Plan savings features:
All Elements-eligible employees
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You have a choice of investment options, and you receive tax-deferred investment earnings.
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Kraft matches $1 for $1 on the first 1% of pay and 70¢ for every $1 you saved on the next 5% of pay. If you save 6% of pay, Kraft’s total Matching Contribution is 75¢ for every $1 saved, or 4.5% of pay.
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Your Company Match will be fully vested after two years of service for contributions made after December 31, 2007.
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Just hired or newly eligible? You’re automatically enrolled with a 3% before-tax contribution rate invested in the plan’s default fund effective approximately 30 days after your date of hire.
Employees hired before January 1, 2009
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You may contribute from 1% to 15% of pay (on a before-tax or after-tax basis, or a combination of both).
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You are ineligible to receive the Kraft 4.5% Basic Contribution.
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If eligible, you will continue to earn pension service in the Retirement (Pension) Plan, and benefits will continue to accrue based on the same formula that’s in effect today.
Employees hired on or after January 1, 2009
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You automatically receive a 4.5% Basic Contribution from the Company.
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You may contribute from 1% to 15% of your pay (on a before-tax or after-tax basis, or a combination of both). However, if you are expected to earn more than $180,000, the maximum you can contribute is 10%.
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You are ineligible to participate in the Retirement (Pension) Plan (i.e., this plan is closed to employees hired on or after January 1, 2009).
The Thrift 401(k) Plan is not available to all Kraft employees. For more information, see MyBenefits Online.
The money you contribute to your Thrift 401(k) Plan account can grow through investment earnings. Once you begin contributing, those dollars can start earning on their own. This effect of earning “interest on your interest” is called compounding. The longer your money is invested, the more compounding can happen.
Compounding applies not only to your contributions, but also to Kraft’s Basic Contributions (if eligible) and Matching Contributions — all the more reason to contribute at least 6% to the Thrift 401(k) Plan. If you don’t, you’re passing up “free money” and all the compound earnings on that money. By starting to save sooner — rather than later — and sticking with it, you give compounding more time to work.
Also consider …
Kraft Matching Contributions
Managing Your Account
Just Hired?
Pathways to Investing