Planning for retirement is one of the most important financial steps every employee should take. Michaels Stores, one of the largest arts and crafts retailers in the United States, provides its team members with a flexible retirement savings program, the Michaels 401(k) Plan. This plan is designed to help employees build long-term financial security while enjoying tax advantages and employer support throughout their savings journey.
This guide covers everything you need to know about the Michaels 401(k) Plan, including eligibility, enrollment, contribution limits, employer match, vesting, loans, login steps, and tips to maximize your benefits. Whether you are new to Michaels or a longtime associate, understanding this plan empowers you to make informed financial decisions.
What Is the Michaels 401(k) Plan?
The Michaels 401(k) Plan is a qualified, employer-sponsored retirement account that lets eligible employees save a portion of their paycheck in a tax-advantaged account. You can choose to contribute on a pretax or Roth after-tax basis depending on your preference.
Key features include:
- Automatic payroll deductions for easy savings
- Safe Harbor matching from Michaels to boost retirement savings
- A diverse selection of investment options through Voya Financial (effective February 2024)
- Loan provisions and hardship withdrawals under certain conditions
- Online access through the secure Voya portal.
The plan is carefully administered in compliance with ERISA and IRS guidelines, ensuring both regulatory protection and financial benefits for participants.
Michales 401(k) Plan Eligibility & Enrollment Basics
Who Can Join and When?
- You must be at least age 21 to participate.
- Full-time employees are eligible immediately upon hire.
- Part-time employees must work at least 1,000 hours in a year to participate.
- Once eligibility is met, your Entry Date is immediate for full-time and typically the first of the month after you complete the service requirement for part-time.
Safe Harbor Matching Eligibility
Michaels follows Safe Harbor rules for employer matching:
- Full-timers must complete three months of employment to qualify for company match.
- Part-timers become eligible after satisfying the 1,000-hour requirement.
How to Enroll in Michaels 401(k)?
Enrolling is straightforward:
- Visit the Michaels benefits portal or access the link sent by HR.
- Log in via the Voya Financial portal (since transition in February 2024) .
- Select your contribution type—pretax, Roth, or after-tax.
- Set your contribution percentage.
- Choose investment options from the available lineup.
- Submit your enrollment electronically.
Once enrolled, contributions will automatically be deducted from your paycheck each pay period.
IRS Contribution Limits (2025)
Understanding IRS limits helps you get the most out of your plan:
- Employee Contribution Limit: $23,000 for 2025.
- Catch-Up Contributions (age 50+): Additional $7,500.
- These amounts are the maximum you can defer into the plan in a year.
While employer contributions don’t count toward the personal limit, total contributions must not exceed IRS overall limits.
Employer Match — Real Added Value
Michaels provides a Safe Harbor 401(k) match, which means:
Matching Formula:
- Michaels matches $1 for $1 on the first 3% of your pay.
- Then matches $0.50 for every $1 of the next 2% of your pay.
To capture the full match, contribute at least 5% of your salary. That’s free money on top of your own savings—don’t leave it on the table.
Vesting — You Own It Instantly
Good news—Michaels employees are 100% vested immediately in both employee and employer contributions. That means the moment contributions are made, they are yours, even if you leave the company shortly after.
Loans & Withdrawals — Your Options
The Michaels 401(k) Plan offers flexibility under certain conditions:
Loans:
- Only one outstanding loan at a time is allowed.
- You may borrow up to 50% of your vested balance, or $50,000, whichever is less.
- Minimum loan amount is $1,000.
Withdrawals:
- Hardship withdrawals are allowed for expenses like medical bills or buying a home.
- Early withdrawals (before age 59½) may be subject to a 10% penalty plus regular taxes.
- Required Minimum Distributions (RMDs) start at age 73.
Investment Options — Choose What Works for You
Michaels’ plan offers an array of choices tailored to your goals:
- Target Date Funds (automatically adjust risk over time)
- Index Funds (low-cost, track market indices like the S&P 500)
- Bond Funds (stability via fixed-income)
- International Equity options for diversification
- Stable Value Funds for low-risk, steady growth
Balance your mix based on your retirement timeline and risk appetite. Diversification remains the cornerstone of long-term investing success.
Tax Advantages — Let Your Money Work Smart
Here’s how you benefit tax-wise:
- Pretax Contributions reduce taxable income now and grow tax-deferred.
- Roth Contributions are funded with after-tax dollars but distribute tax-free in retirement.
- Earnings grow without immediate taxation, compounding your wealth effectively.
Consult your tax advisor to decide which contribution type suits your financial situation best.
How to Log In to Your Michaels 401(k) Account?
Accessing your account is fast and secure:
- Go to the Voya Financial portal at the link provided by Michaels HR or in your benefits materials.
- Enter your User ID and Password. These are created at enrollment.
- First-time users will register using your Social Security Number (SSN) and create new login credentials.
- Click “Login” to access your dashboard.
- Once logged in, review your account balance, recent contributions, employer match, investment allocations, and transaction history.
- If you forget your login details, click “Forgot User ID” or “Forgot Password” to reset.
- For help, reach out to Voya customer support or your HR benefits team.
Plan Performance at a Glance
A glimpse into plan health and participation:
- Total plan assets as of end 2023: $307 million
- Number of participants: 23,215
- Average account value: $13,224
- Average employee contribution: $856
- Average employer match: $381
This data shows positive momentum in participation and growth .There’s room to optimize your personal savings too!
Mistakes to Avoid
Here are a few pitfalls to watch out for:
- Not contributing enough to get the full employer match.
- Making early withdrawals and losing growth potential and facing penalties.
- Not diversifying—your investments should reflect your risk tolerance.
- Leaving contributions unchanged over time.
- Overlooking login access and missing chances to rebalance or adjust.
FAQs — Quick Answers for Common Questions
1. How do I check my Michaels 401(k) balance?
Go to the Voya portal, log in, and view your account details.
2. When can I start contributing?
Full-time hires can begin immediately if age 21 or older. Part-time hires must complete 1,000 hours within a year.
3. Is Roth 401(k) available?
Yes. You can select between Roth or pretax contributions.
4. What happens to my account if I leave Michaels?
You may roll over your balance to an IRA or to another employer’s plan.
5. How much should I contribute?
At least 5% to maximize the match, and consider increasing gradually toward the IRS limit.
Conclusion
The Michaels 401(k) Plan offers a powerful opportunity to build retirement wealth through tax-advantaged contributions, employer matching, solid investment options, and immediate vesting. By understanding eligibility, enrollment, contribution options, loans, withdrawals, and how to access your account online, you are better equipped to make wise financial moves.
Stay engaged review your account regularly, adjust contributions if you can, diversify your investments, and avoid common mistakes. This plan is a valuable tool to help you reach financial peace of mind in retirement. If you haven’t already, log in to the Voya portal today and take control of your future.