What you need to know

Your future self just called to thank you for stashing away all that money in your 401(k). Seriously. The 401(k) plan is a great way to build that nest egg. And because it’s super easy and convenient, it won’t ruffle any feathers in the process. You even have two tax-payment options, so you can decide whether you want to pay Uncle Sam now or later. The best news: You don’t have to figure it all out on your own. Northstar financial planners are here to guide you.


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  • Save up to 75% of your gross wages (including salary, time off, bonuses, and commission), up to $23,000 in 2024 (or $30,500 if you're 50+), with traditional pretax and Roth contributions.
  • Designate a different contribution amount for variable pay like bonus or commission payments.
  • Get a 50% company match on the first 6% of your pay you contribute as pretax and/or Roth contributions. That’s free money. Every pay period. No joke. 
  • Put away even more with after-tax contributions. The total of all your contributions, including the company match, can be up to $69,000 in 2024 (or $76,500 if you're 50+).
  • All contributions, including the company match, are always 100% yours.

Free money

Workday matches half of the first 6% of your pay that you contribute to your 401(k) as pretax and/or Roth contributions. To get the full match, be sure to contribute at least 6% of your annual pay.

Math not your thing?

Let’s break it down. If you make $100,000 per year, here’s an example of how the Workday match works.

If you contribute this percentage of your pay to your 401(k)…You’ll be contributing this much in a year…And Workday will add this much more

Workday will match half of your contribution up to 6% of your pay. If you put in less than 6%, you’re not getting the full company match possible. If you contribute more than 6% (good for you!) you’ll get the full company match (equal to 3% of your eligible earnings).

If you join Workday midyear, Workday’s potential match is based on 6% of your actual eligible earnings for that year, not your potential annual salary.

When you’ll meet your match

There’s one more thing you should know: Workday’s match is capped at 50% of the first 6% of your pay you contribute each pay period. That means if you contribute more than 6% of your pay, it will take until the end of the year for Workday to catch up, through a process called true-up. 

Here’s an example. Let’s say you make $130,000 per year, and you contribute 25% of your pay to your 401(k) as pretax contributions.

  • Workday’s match for the full year will be half of the first 6% of your pay, or $3,900.
  • Each pay period, you’ll contribute $1,250, which is 25% of your biweekly earnings. Workday will match half of the first 6% of your earnings, or $150.
  • You’ll hit the IRS contribution limit of $23,000 in the 19th pay period (i.e, in October). But Workday's contributions so far will only have reached $2,700, which is short of the $3,900 full-year match.
  • For the remaining eight pay periods, Workday will make true-up contributions to your 401(k) until you've received the full-year match of $3,900.

By the way, the IRS limit for eligible pay is $345,000 in 2024, so your maximum Workday match for the year is $10,350 if you make more than that.

Save for later while paying off student debt

When you enroll in the Student Debt 401(k) Match Program, you can use your student loan repayments to qualify for the Workday 401(k) matching contribution. So, as long as you’re setting aside 6% of your pay between your 401(k) contributions and your student loans, you won’t miss out on any free money.

Get enrolled

Pay taxes now or later

There are different types of 401(k) contributions, and each has different tax implications. When deciding on which to choose, consider what your income in retirement might be. Generally, if you expect your income tax rate to be lower in retirement than while you’re working, then pretax contributions may make sense, since you will be taxed when you take a withdrawal. If you expect to have a higher income tax rate in retirement, then maybe Roth contributions will make sense for you. You can also boost retirement savings with additional after-tax contributions.

Traditional pretax

Your contributions are taken on a pretax basis. That means lower federal and state taxes now, but you’ll pay taxes when you get your money in retirement. You earn the Workday match on pretax contributions.


You pay taxes on your contributions now, but no taxes on contributions or investment earnings when you get your money in retirement. You earn the Workday match on Roth contributions.


You pay taxes on your contributions now, and any investment earnings will be taxed when you take a withdrawal. There is no Workday match for after-tax contributions. So why consider making additional after-tax contributions?

If you have extra money to put toward retirement, after-tax contributions let you save beyond the pretax and Roth IRS limits. For 2024, this means you could contribute up to $69,000 of your eligible compensation (combined with pre-tax, Roth 401(k), and employer contributions); $76,500 if you're age 50+. Use this formula to determine how much you can contribute after-tax:

formula to determine how much you can contribute after-tax: annual additions limit minus pre tax and Roth contributions minus Workday match equals your potential after-tax contributions

After-tax contributions grow tax-deferred but you pay taxes on investment earnings at withdrawal. You can continue to enjoy tax benefits by converting after-tax contributions to Roth. 

You can convert your after-tax money to Roth at any time, and there is no limit to how often you can convert. You can make converting easier by signing up for automated conversions by calling Fidelity.

How to save more in your 401(k)

Typically, people take full advantage of traditional pretax and Roth contributions before making after-tax contributions.

Keep in mind, there are lots of things that can impact your decision to make after-tax contributions, and they may not be right for everyone. Your best bet is to talk to a tax professional or financial advisor.

Talk to a financial advisor

View contribution options

New to Workday?

You’re probably pumped to embark on the 401(k) adventure! You can enroll in the plan on the Fidelity website starting 10 days after your hire date. Have a 401(k) plan with your previous employer? Avoid exceeding your annual contribution limit by completing the 401(k) questionnaire through Workday. Instructions can be found on Workspace.

“Oh yeah!” or “Oh no!”?

Your dreams may be telling you, “Retire in 10 years,” but your savings could be saying, “Yeah, right. More like 25.” Are you on track to retire when you want to?

Find out now


Dive deeper into the plan by reviewing the Workday 401(k) Plan Document and Loan Policy or the Workday Brochure. Or get all scholastic about it by taking a workshop or webinar.

Which one are you?

One in three Americans has nothing saved for retirement. Be one of the other two. Preferably the one with the good taste in music. And that perfect motorcycle jacket.