Retirement planning can feel like a distant concept, but it's one of the most important financial steps you can take. For Walmart associates, the 401(k) plan offers a fantastic opportunity to build a secure future, often with the added benefit of company matching contributions. But where do you even begin?
Feeling a little overwhelmed by the idea of signing up for your Walmart 401(k)? Don't be! It's a straightforward process, and by the end of this lengthy guide, you'll feel confident about taking control of your retirement savings. Let's dive in!
The Power of the Walmart 401(k): Why It Matters to YOU
Before we get into the "how-to," let's quickly touch on why this is such a valuable benefit. A 401(k) is a retirement savings plan sponsored by your employer. It allows you to contribute a portion of your pre-tax (or post-tax, with a Roth option!) salary, and your money grows tax-deferred. This means you don't pay taxes on the growth until you withdraw the funds in retirement.
Company Match: This is the BIGGEST reason to enroll. Walmart offers a generous dollar-for-dollar match on your contributions, typically up to 6% of your eligible pay, once you become eligible for the match. This is essentially free money for your retirement – imagine getting an immediate 100% return on your investment!
Tax Benefits: Whether you choose a traditional 401(k) (pre-tax contributions) or a Roth 401(k) (post-tax contributions, tax-free withdrawals in retirement), you're gaining significant tax advantages.
Compounding Growth: The earlier you start, the more time your money has to grow through the magic of compounding. Even small contributions made consistently can add up to a substantial nest egg over decades.
Step 1: Determine Your Eligibility – Are You Ready to Start Saving?
The very first question on your mind should be, "Am I even eligible for the Walmart 401(k)?" Good news! Most Walmart employees are eligible to participate in the plan shortly after their date of hire and once they are entered into Walmart's payroll system.
Sub-heading: Understanding the Basics of Eligibility
Immediate Contribution Eligibility: You can typically start making contributions to the 401(k) plan after receiving your first paycheck. This means you don't have to wait long to begin your retirement savings journey.
Company Match Eligibility: While you can contribute almost immediately, Walmart's company match usually kicks in after you've completed your first year of employment and have been credited with at least 1,000 hours of service during that first year. You also need to be actively contributing to your 401(k) account to receive the match.
No Age Limit: There is generally no age limit to participate in the Walmart 401(k) Plan, which is great news for associates of all ages looking to save.
Action Point: If you're a new hire, keep an eye out for an enrollment packet that should arrive at your home address shortly after your hire date. This packet will contain important information about how to make contributions and select investments.
Step 2: Accessing the Enrollment Platform – Your Digital Gateway to Retirement
Walmart's 401(k) plan is administered by Merrill Lynch. This means you'll interact with Merrill Lynch's platforms to manage your account.
Sub-heading: Where to Go Online
You have a few primary options to enroll or manage your Walmart 401(k):
One.Walmart.com: This is your central hub for all associate benefits and resources. You can typically navigate from here to the 401(k) enrollment section.
Benefits.ML.com: This is Merrill Lynch's dedicated website for your Walmart 401(k) plan. This is often the most direct route to manage your account, especially if you plan to make Roth contributions.
Workday (for Jet associates): If you're a Jet associate, you might access your benefits through Workday.
Sub-heading: Need Assistance? Call Them Up!
If you prefer to speak with someone or are having trouble with online enrollment, you can always call the Merrill Lynch Customer Service Center at 888-968-4015. They are there to help guide you through the process.
Action Point: Choose your preferred method of access. If you're new to it, One.Walmart.com might be a good starting point as it links to all your benefits.
Step 3: Making Your Initial Enrollment Choices – Pre-Tax vs. Roth & Contribution Amount
Once you're on the enrollment platform, you'll be faced with some important decisions. Don't worry, you can always change these later!
Sub-heading: Traditional (Pre-tax) 401(k) vs. Roth 401(k)
Walmart's 401(k) plan offers both traditional (pre-tax) and Roth (after-tax) contribution options. Understanding the difference is crucial for your tax strategy:
Traditional 401(k) (Pre-tax):
Contributions: Made with money from your paycheck before taxes are taken out. This lowers your taxable income in the current year.
Growth: Your money grows tax-deferred.
Withdrawals in Retirement: Subject to federal income tax (and usually state/local taxes) when you withdraw them in retirement.
Benefit: You get a tax break now.
Roth 401(k) (After-tax):
Contributions: Made with money from your paycheck after taxes have been taken out. Your current taxable income is not reduced.
Growth: Your contributions and qualified earnings grow tax-free.
Withdrawals in Retirement: Are tax-free (as long as the distribution meets certain requirements, like being age 59½ or older and having the account open for at least five years).
Benefit: You get tax-free income in retirement.
Can you choose both? Yes! Many savers choose to split their contributions between the pre-tax and Roth options to hedge their bets on future tax rates.
Important Note: Walmart's matching contributions are always made on a pre-tax basis, regardless of whether your own contributions are pre-tax or Roth. These matching funds will be subject to taxation upon withdrawal in retirement.
Sub-heading: Deciding Your Contribution Amount – How Much Should You Save?
This is a personal decision based on your financial situation, but there are some excellent guidelines to follow:
Start with the Match (at least 6%): As mentioned, Walmart matches dollar-for-dollar up to 6% of your eligible pay. This is free money you absolutely don't want to miss! If you can only afford to contribute one amount, make it at least 6% to capture the full company match.
Increase Over Time: Even if you start small, aim to increase your contribution percentage by 1% or 2% each year, especially when you get a raise. You'll barely notice the difference in your take-home pay, but your retirement savings will thank you.
IRS Contribution Limits (2025): The IRS sets annual limits on how much you can contribute to your 401(k).
For 2025, the standard employee contribution limit is $23,500.
If you are age 50 or older, you can make an additional "catch-up" contribution of $7,500, bringing your total to $31,000.
New for 2025: For those aged 60-63, there's a higher catch-up contribution limit of $11,250 (if your plan allows), making the total $34,750.
These limits apply to your combined contributions to all 401(k) plans you may have in a calendar year.
Action Point: Determine your initial contribution percentage. Aim for at least 6% to get the full company match! Decide if you want to contribute pre-tax, Roth, or a combination.
Step 4: Selecting Your Investments – Where Your Money Will Grow
This is where your money actually goes to work for you. Your Walmart 401(k) plan offers a menu of investment options.
Sub-heading: Understanding Investment Options
While specific funds can change, you'll typically find a variety of investment choices, including:
Target-Date Funds: These are a great option for most people, especially if you're new to investing. You choose a fund with a target retirement date (e.g., "2050 Fund"), and the fund's allocation (mix of stocks and bonds) automatically adjusts over time, becoming more conservative as you get closer to retirement.
Equity Funds (Stock Funds): These invest primarily in stocks and offer higher growth potential but also come with higher risk. They can be diversified by company size, industry, or geographic region.
Bond Funds: These invest in bonds, which are generally less volatile than stocks and provide income. They are considered more conservative.
Money Market Accounts: These are very low-risk options, typically used for holding cash. They offer minimal returns and are generally not recommended for long-term retirement savings due to inflation.
Sub-heading: Diversification and Risk Tolerance
Diversification: It's generally wise to diversify your investments across different asset classes (stocks, bonds) to reduce risk.
Risk Tolerance: Consider your comfort level with risk. Younger investors with a longer time horizon can typically afford to take on more risk (more stocks), while those closer to retirement might prefer a more conservative approach (more bonds).
Action Point: Review the investment options available through Merrill Lynch. If you're unsure, a target-date fund corresponding to your approximate retirement year is often a good and easy choice.
Step 5: Designating Your Beneficiary – Who Gets Your Savings?
This is an incredibly important, but often overlooked, step. Your beneficiary is the person (or people) who will receive your 401(k) funds if something happens to you.
Sub-heading: Why a Beneficiary is Essential
Avoids Probate: Designating a beneficiary ensures your 401(k) funds pass directly to your chosen individual(s) without going through the often lengthy and costly probate process.
Your Wishes Honored: It ensures your savings go to the people you intend. Without a beneficiary, the funds may be distributed according to default plan rules or state law, which might not align with your wishes.
Action Point: Take a moment to designate your primary and contingent beneficiaries. Keep this information updated, especially after major life events like marriage, divorce, or the birth of a child.
Step 6: Confirm Your Enrollment and Review Regularly
Once you've completed all the steps, you'll receive a confirmation notice.
Sub-heading: What to Look For in Your Confirmation
Contribution Percentage: Double-check that the percentage you elected is correct.
Pre-tax or Roth Election: Confirm your choice.
Investment Options: Ensure your selected funds are accurately reflected.
Sub-heading: Ongoing Monitoring and Adjustments
Your retirement plan shouldn't be a "set it and forget it" endeavor entirely.
Annual Reviews: It's a good idea to review your 401(k) account at least once a year.
Check your contributions: Are you still contributing enough to get the full match? Can you increase your contributions?
Review your investments: Are they still aligned with your risk tolerance and retirement timeline? Consider rebalancing if necessary.
Update beneficiaries: Has your life situation changed?
Financial Wellness Resources: Walmart and Merrill Lynch often provide financial education resources to help you make informed decisions. Utilize them!
Action Point: Save your confirmation notice. Schedule a reminder to review your 401(k) account annually.
10 Related FAQ Questions (How to...)
Here are some quick answers to common questions about the Walmart 401(k):
How to check my Walmart 401(k) balance? You can check your Walmart 401(k) balance by logging into your account on Merrill Lynch's website (benefits.ml.com) or through the Benefits Online app.
How to change my Walmart 401(k) contribution amount? You can change your 401(k) contribution rate (percentage of your pay) at any time by logging into benefits.ml.com or One.Walmart.com.
How to change from Traditional 401(k) to Roth 401(k) or vice-versa? Yes, you can change your election between pre-tax and Roth contributions at any time through the Merrill Lynch website (benefits.ml.com).
How to roll over an old 401(k) into my Walmart 401(k)? You can typically roll over funds from a previous employer's 401(k) or an IRA into your Walmart 401(k). Contact Merrill Lynch directly at 888-968-4015 or visit benefits.ml.com for specific instructions and forms.
How to take a loan from my Walmart 401(k)? Walmart generally allows you to take loans from your vested 401(k) balance. You can apply for a loan online at benefits.ml.com or by calling the Customer Service Center at 888-968-4015. Be aware of the terms and conditions, including repayment schedules and limits.
How to withdraw money from my Walmart 401(k) while still employed? In most cases, you cannot withdraw funds from your 401(k) until you have stopped working for Walmart. However, limited exceptions may exist for financial hardship, or you may be able to withdraw rollover contributions at any time. Contact Merrill Lynch for details.
How to find out my Walmart 401(k) vesting schedule? You are immediately vested in your own contributions and any rollover contributions. For Walmart's matching contributions, there is typically a vesting schedule, often becoming fully vested after a certain number of years of service. You can find this information in your plan documents on benefits.ml.com or by contacting Merrill Lynch.
How to contact Walmart 401(k) customer service? You can contact the Walmart 401(k) customer service (Merrill Lynch) by calling 888-968-4015.
How to update my beneficiary for my Walmart 401(k)? You can update your beneficiary designations by logging into your account on benefits.ml.com. It's crucial to keep this information current.
How to understand the IRS contribution limits for my Walmart 401(k)? The IRS sets annual limits for how much you can contribute to your 401(k) (both traditional and Roth combined). For 2025, the standard limit is $23,500, with a catch-up contribution of $7,500 for those age 50 and over (and a higher catch-up for ages 60-63). You can always find the most current limits on the IRS website or through your Merrill Lynch account.
Congratulations! You're now equipped with a comprehensive understanding of how to sign up for your Walmart 401(k) and manage your retirement savings. Start today, and secure your financial future!