Tribune/Alden wants to steal from you $$$

–––––––– Company match proposed to be eliminated    
–––––––– Without match

401k FAQs

What is a 401k?

401ks are retirement accounts administered by a company hired by your employer. The company that administers Tribune Publishing 401ks is called Vanguard. There are several reasons to sign up.

Why would I want to start a 401k?

• Because it’s a company-run account, you have more choices for investments. (vanguard.com can provide more information).


• The money comes out as a payroll deduction, so you won’t ever see it until you retire.


• The money tends to grow with the stock market, tracking the mutual funds they are invested in.


• Tribune currently contributes to your 401k by offering a match based on what you put in. For the first 2% of your salary that you contribute, Tribune will match you dollar for dollar. For the next 4% you contribute, Tribune will match you 50 cents for every dollar.


• There are significant tax breaks with a 401k. Your money is tax-deferred in a traditional 401k, as opposed to what you invest in a savings account or regular stock fund. For Roth IRAs, you pay taxes on what you invest, but not when you withdraw the money in retirement. Year to year gains are also not taxed as income in either kind of plan.

When can I start a 401k?

You are automatically enrolled in the 401k when you start your job with Tribune unless you opt out. If you do, you can join during annual open enrollment, which Tribune Publishing does in November.

What do you mean by employer contributions?

Employer contributions are common with 401ks. It is an amount of money, usually a percentage, that the employer kicks in as an incentive to join the plan.

On the current Tribune Publishing plan most papers are on, the company matches up to 2% of your individual salary, and then matches 50% of your contribution up to 6%, for a possible total of a 4% match.

The Baltimore Sun, which has a contract, matches up to 3.5% of an employee’s wages in the 401k.

What is vesting?

Vesting refers to ownership. An employee owns a certain portion of the money in his/her/their account that the employer contributes, until a designated time, when they are fully vested and own all of it. The employee owns all of their own contributions from the beginning.

What is the proposal?

On the current Tribune plan, employees do not get any of the employer contribution until 2 years, when they are fully vested. The proposed contract 401k plan would change to a gradual vesting; starting with 20% after 1 year, and increasing by 20% until 5 years, where the employee would be fully vested.

What if I’m only 25 years old? Why should I contribute to my 401k?

Your pre-tax investment compounds over time, so while it may not seem like much now, a $1,000 contribution per year ($36 per paycheck) will grow to $63,715 when you’re 50 years old. Let’s break it down. You contribute $1,000 annually for a total of $25,000, but the rate of return at 6.5% yields an additional $37,715. And that’s without a company match.

Created with ♡ by the 401k committee of the unions that represent Tribune/Alden employees, March 2021.

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