How to Access Your Walmart 401(k): A Comprehensive Guide
Are you a current or former Walmart associate wondering how to get started with, manage, or even access the funds in your Walmart 401(k) plan? You've come to the right place! This comprehensive guide will walk you through every step of the process, from initial login to understanding your withdrawal options, ensuring you have the knowledge to confidently manage this important retirement asset.
Let's dive in and unlock the potential of your retirement savings!
Step 1: Discover Your 401(k) Provider and Account Access
First things first: do you know who administers your Walmart 401(k) plan? For many Walmart associates, the 401(k) plan is managed by Merrill Lynch (a Bank of America company). However, it's always a good idea to confirm.
How to confirm your provider:
Check your past statements: Any statements you've received about your 401(k) contributions or account balance will clearly state the provider.
One.Walmart.com: If you're a current associate, the "My Total Rewards" section on One.Walmart.com often has direct links and information about your 401(k).
HR/People Services: Your Human Resources or People Services department at Walmart can provide you with the most accurate and up-to-date information on your plan administrator. The general People Services contact number is 800-421-1362.
Once you know your provider (likely Merrill Lynch), here's how to access your account:
Step 1.1: Logging In Online
The primary way to access your Walmart 401(k) is through the provider's online portal.
For Merrill Lynch: Navigate to Benefits OnLine which is Merrill Lynch's platform for retirement plans. You can usually find it by searching "Merrill Lynch Benefits OnLine" or going directly to benefits.ml.com.
If you're a first-time user: Look for an option like "Create User ID" or "Register Now." You'll likely need to provide personal information to verify your identity, such as your Social Security Number, date of birth, and potentially a PIN (which might be your birth date in MMDDYY format if you've never called them before).
If you already have credentials: Enter your User ID and Password.
Forgot your User ID or Password? Don't panic! There are usually "Forgot User ID?" and "Forgot Password?" links that will guide you through the recovery process, often involving security questions or sending an authorization code to your registered phone or email.
Step 1.2: Accessing via Phone
If you prefer to speak with someone or are having trouble with online access, you can always call your plan administrator.
For Merrill Lynch (Walmart 401(k) Plan): The dedicated phone number is 1-888-968-4015. Customer Service Associates are typically available during business hours (e.g., Monday-Friday, 8 AM to 9 PM ET).
Be prepared to verify your identity: They will ask for personal information to ensure your account security.
Step 2: Understanding Your Walmart 401(k) Options (While Employed)
Once you've successfully accessed your account, it's crucial to understand the features and options available to you as a current Walmart associate.
Step 2.1: Contributions
Contribution Percentage: You can typically choose to contribute a percentage of your eligible wages to your 401(k) plan, up to the annual IRS limits. These limits are subject to change each year, so it's good to stay informed.
Pre-Tax vs. Roth 401(k): Walmart offers both a Traditional (pre-tax) 401(k) and a Roth 401(k) option.
Traditional 401(k): Contributions are made before taxes, reducing your current taxable income. Taxes are paid when you withdraw funds in retirement.
Roth 401(k): Contributions are made after taxes. Your money grows tax-free, and qualified withdrawals in retirement are also tax-free.
Consider your current and future tax rates when deciding which option is best for you. Many people choose to contribute to both for tax diversification.
Company Match: This is a huge benefit! Walmart is known for a generous company match. Historically, they have matched 100% of the first 6% of eligible pay you contribute. This is essentially free money for your retirement!
Important Note: Company matching contributions are generally made on a pre-tax basis, even if your contributions are Roth.
Changing Contributions: You can usually start, stop, or change your contribution amount and your pre-tax/Roth election at any time through the online portal or by calling customer service. Changes often take effect quickly, sometimes as soon as your next paycheck.
Step 2.2: Investment Options
Your Walmart 401(k) plan offers a variety of investment choices.
Diversified Options: The plan typically includes a range of mutual funds and target-date funds.
Target-Date Funds: These are popular options that automatically adjust their asset allocation (mix of stocks and bonds) over time, becoming more conservative as you approach your target retirement date. They offer a convenient, hands-off approach.
Individual Funds: For those who prefer more control, you can usually select individual funds (e.g., large-cap equity, international equity, bond index funds, money market funds) to build your own diversified portfolio.
Fees: Pay attention to the expense ratios (fees) associated with the funds. Lower fees mean more of your money stays invested and grows for you. Walmart's plan generally offers low-cost index funds, which is a significant advantage.
Reviewing and Adjusting: It's a good practice to review your investment allocation periodically (e.g., annually) to ensure it aligns with your risk tolerance and retirement goals.
Step 2.3: Loans from Your 401(k)
Yes, you can typically take a loan from your Walmart 401(k) account.
Types of Loans: There are usually two types: a general-purpose loan and a primary residence loan (for buying a home).
Limits: The maximum loan amount is generally limited by IRS rules to $50,000 or 50% of your vested account balance, whichever is less.
Repayment: You typically repay the loan with interest, and the interest goes back into your own 401(k) account. Repayment terms vary, but most are repaid via payroll deductions.
Considerations: While loans avoid taxes and penalties (as long as they are repaid on time), they do reduce your invested balance, potentially impacting your long-term growth. If you leave employment before repaying the loan, the outstanding balance may become immediately due, and if not repaid, it will be treated as a taxable distribution, subject to taxes and potentially a 10% early withdrawal penalty if you're under 59½.
Step 3: Accessing Your Funds (Post-Employment or In-Service)
Accessing your 401(k) funds while still employed is generally restricted to loans and certain hardship withdrawals. The primary opportunities to access your funds without significant penalties usually arise after you leave Walmart or reach a certain age.
Step 3.1: After Leaving Walmart (Separation from Service)
When you leave Walmart, you typically have several options for your 401(k):
Leave It in the Walmart Plan: If your balance is above a certain threshold (e.g., $5,000 or $7,000, which can vary by plan rules), you can often leave your money in the Walmart 401(k) plan. This might be a good option if you appreciate the plan's investment options and low fees. However, you won't be able to contribute further.
Roll Over to a New Employer's 401(k): If your new employer offers a 401(k) plan and allows rollovers, you can transfer your Walmart 401(k) funds into your new plan. This consolidates your retirement savings.
Roll Over to an Individual Retirement Account (IRA): This is a very common option. You can roll your Walmart 401(k) into a Traditional IRA or a Roth IRA (if eligible and you pay taxes on the conversion). An IRA often provides more investment choices than a 401(k) plan.
Direct Rollover: It's highly recommended to perform a direct rollover where the funds are transferred directly from Merrill Lynch to your new 401(k) or IRA custodian. This avoids any accidental taxable events or withholding.
Indirect Rollover: If you receive a check, you have 60 days to deposit it into another qualified retirement account to avoid taxes and penalties. This method carries more risk.
Cash Out (Withdraw): You can choose to "cash out" your 401(k) balance.
WARNING: This is generally not recommended, especially if you are under age 59½.
Tax Consequences: Cashing out will result in your withdrawal being taxed as ordinary income.
Early Withdrawal Penalty: If you are under 59½, you will also likely incur a 10% early withdrawal penalty from the IRS, in addition to income taxes. This can significantly erode your savings.
Lost Growth: Cashing out removes money that could have continued to grow tax-deferred for your retirement.
Step 3.2: In-Service Withdrawals (While Still Employed)
Generally, in-service withdrawals (taking money out while still working) are highly restricted and typically only allowed for specific reasons or after a certain age.
Hardship Withdrawals: These are permitted only for immediate and heavy financial needs that cannot be met from other resources. The IRS specifies qualifying events, which typically include:
Medical expenses
Expenses for the purchase of a primary residence
Tuition and related educational fees
Payments to prevent eviction or foreclosure on your principal residence
Burial or funeral expenses
Expenses for the repair of damage to your principal residence that would qualify for a casualty deduction.
Be aware: Hardship withdrawals are generally subject to income tax and, if you're under 59½, the 10% early withdrawal penalty. You also cannot repay a hardship withdrawal.
Age-Based Withdrawals: Some plans allow in-service withdrawals after reaching a certain age (e.g., 59½), even if you are still employed. These withdrawals would typically be subject to income tax but not the 10% early withdrawal penalty.
Step 4: Important Considerations and Best Practices
Keep Your Beneficiaries Updated: Regularly review and update the beneficiaries on your 401(k) account. This ensures your savings go to the people you intend if something happens to you. You can typically do this through the online portal or by contacting customer service.
Understand Vesting: While Walmart's company match is 100% immediately vested, older profit-sharing accounts may have had a vesting schedule. "Vesting" means owning the employer's contributions. Make sure you understand the vesting rules for any funds in your account.
Seek Professional Advice: Retirement planning and managing your 401(k) can be complex. Consider consulting a financial advisor, especially when making significant decisions like rollovers or withdrawals. They can help you navigate tax implications and create a strategy aligned with your overall financial goals.
Security: Always be vigilant about your account security. Use strong passwords, enable two-factor authentication if available, and be wary of phishing attempts.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to accessing your Walmart 401(k), with quick answers:
How to check my Walmart 401(k) balance?
You can check your Walmart 401(k) balance by logging into your account online at Benefits.ml.com (for Merrill Lynch) or by calling Merrill Lynch Customer Service at 1-888-968-4015.
How to enroll in the Walmart 401(k) plan?
If you are a current eligible associate, you can enroll through
How to change my Walmart 401(k) contributions?
You can change your contribution amount or switch between pre-tax and Roth options by logging into your account at Benefits.ml.com or by calling Merrill Lynch Customer Service.
How to roll over my Walmart 401(k) after leaving employment?
To roll over your Walmart 401(k), contact Merrill Lynch Customer Service at 1-888-968-4015 and request a direct rollover to your new employer's 401(k) or to an IRA with your chosen custodian.
How to take a loan from my Walmart 401(k)?
You can apply for a loan from your 401(k) by completing the online form at Benefits.ml.com or by calling the Merrill Lynch Customer Service Team.
How to make a hardship withdrawal from my Walmart 401(k)?
Hardship withdrawals are for immediate and heavy financial needs. Contact Merrill Lynch Customer Service at 1-888-968-4015 to understand the specific requirements and application process for a hardship withdrawal.
How to update beneficiaries on my Walmart 401(k)?
You can update your beneficiaries by logging into your account on Benefits.ml.com, usually under a "Beneficiaries" or "Profile" section, or by contacting Merrill Lynch Customer Service.
How to contact Merrill Lynch for Walmart 401(k) assistance?
You can contact Merrill Lynch for Walmart 401(k) assistance by calling their Customer Service Center at 1-888-968-4015.
How to understand the tax implications of Walmart 401(k) withdrawals?
Withdrawals from a traditional 401(k) are taxed as ordinary income. Withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty, unless an exception applies (like a qualified hardship withdrawal). Roth 401(k) withdrawals are tax-free if qualified. It's best to consult a tax advisor for personalized advice.
How to find investment options within the Walmart 401(k) plan?
Log in to your account at Benefits.ml.com to view the available investment options, including target-date funds and various mutual funds, along with their associated fees and performance information.
