Retirement Savings Plan


RetirementSavings Plan

Target Corporationis a retail company headquartered in Minnesota, United States. It isthe largest retailer after Walmart in the United States. The companyis also one of the components of Standard &amp Poor’s 500 indexes.The company is placed in the multiline retail industry, which dealsin a number of products including: Shoes, clothing, beauty and healthproducts, jewelry, compact disks, sporting goods, hardware supplies,and automotive (Gilbert, 2015). As of 2014, the company had a totalof 366,000 employees with majority of them based in Minneapolis, theheadquarters of the company.

The company has aqualified plan, which is known as the 401k plan, which makes iteligible to all the employees within the company to plan for theirfuture retire savings plan. The plan is in form of low-expenseretirement funds, which allows the employees to create a qualifiedplan affiliated with their age and their towards their retirementgoals. Target Corporation is listed at the New York Stock Exchange asa publicly traded company (Gilbert, 2015). The company does not havea well-laid out stock plan for its employees. However, it has ageneralized street’s stocks which are sold at $10.

The TargetCorporation’s retirement plan is contributory. The employer is ableto meet what the employee is able to contribute through a calculatedpercentage of what the employee earns. Here, the employer contributes8% of the employee’s compensation, while the employee contributes5% from his or her payroll deduction. The total contributions addedwith the investment earnings add up to form contributory retirementplan from where the employees can draw their retirement benefits(Gilbert, 2015). The company however, does not offer sufficient waysto save for retirement to their employees. This is because theretirement plan put in place is subjected to risk of the company’sunderlying funds. The plan is also not guaranteed at any given time,including the date of asset allocation, which also depends on theemployee’s age.


Gilbert, S. (2015). The story of Target. Mankato, MN: CreativeEducation.