For Eastman employees in Longview, your retirement savings plan is one of the most powerful tools you have for building financial security. Along with the pension, the 401(k) and Retirement Savings Contribution (RSC) form a solid foundation for your future. But like any tool, how well it works for you depends on how you use it.
Let’s walk through the key features of Eastman’s plan — and how to make the most of them as you prepare for retirement.
The Match: Free Money for Your Future
Eastman matches 50% of the first 7% of pay you contribute to your 401(k). That’s like an automatic raise for every dollar you put in. If you contribute 7%, Eastman chips in another 3.5%.
This kind of match is more than generous. It’s one of the easiest, guaranteed returns on your money. If you’re not at least contributing enough to get the full match, you’re leaving free money on the table.
The Retirement Savings Contribution (RSC)
Beyond the match, Eastman automatically contributes an additional 5% of your eligible pay into the plan, whether you contribute or not. This RSC is a rare benefit in today’s corporate world, and it helps your savings grow even faster.
For someone earning $100,000, that’s $5,000 a year automatically added to your retirement account on top of the match. Over a 20-year career, this feature alone can grow into hundreds of thousands of dollars.
Roth vs. Traditional: Which Works for You?
Eastman’s 401(k) allows both traditional (pre-tax) and Roth (after-tax) contributions.
- Traditional contributions lower your taxable income today, but withdrawals in retirement are taxable.
- Roth contributions don’t reduce today’s taxes, but withdrawals in retirement are tax-free.
The right mix depends on your current tax bracket, your expected income in retirement, and how much flexibility you want later. A balanced approach can help you manage both current and future taxes.
What Happens When You Retire?
When you leave Eastman, you’ll face choices about your 401(k) balance:
- Leave it in the plan (if you qualify).
- Roll it into an IRA for more control and investment options.
- Take withdrawals or installments (subject to taxes and penalties if you’re under 59½).
Each option comes with pros and cons. Rolling over to an IRA, for example, may give you more flexibility and control but you’ll want to carefully coordinate that with your pension and Social Security.
Putting It All Together
Your Eastman 401(k) and RSC can provide the bulk of your retirement income if managed wisely. But these benefits don’t exist in a vacuum. They need to work alongside your pension, Social Security, and other savings to create a strategy that supports the lifestyle you want in East Texas. Eastman gives you strong retirement benefits — but the choices you make will determine how far those benefits go. Maximizing the match, taking advantage of the RSC, and carefully planning your Roth vs. traditional contributions are all ways to make sure your retirement savings work for you, not against you.
To get help from a fee-only fiduciary and make sure that you understand your Eastman retirement benefits, email me at [email protected] or call 903-471-0624 and I’d be glad to help you.
