Petco Barking About Benefits Magazine Q3 2012

Here’s Help

How does your investment mix align with your retirement savings goals? Should you be more aggressive? More balanced? More conservative? For answers, check out Fidelity’s portfolio review at www.401k.com to find your target asset mix or complete the Investor Profile Questionnaire. After you log in, click on Guidance & Retirement at the top of your browser window. Next click on Investment Guidance then click on Portfolio Review .

Tax Credit You may be eligible to receive a federal tax credit equal to 10%, 20% or 50% of your annual Petco 401(k) contribution, up to $1,000 if you file a: • Single tax return and have annual income of $28,250 or less; or a • Joint tax return and have annual income of $56,500 or less. For example, if you and your spouse had a combined income of $32,000, filed a joint tax return, and together contributed $4,000 ($2,000 each) to a 401(k) plan, you would be eligible for a 50% tax credit. This means you would pay $2,000 ($4,000 x 50%) less in income taxes for the year. Plan Withdrawals Because 401(k) Plans are designed for retirement savings, IRS regulations specify when you can receive funds from the Plan. Before age 59 1 / 2 , you

Loans Although the 401(k) Plan is intended to help feather your nest for the future, you may borrow from your account if funds are needed and the situation does not qualify as a severe financial hardship. Taking a loan may be a better option than taking a flat-out early withdrawal, which will generally result in a 10% penalty plus income tax on the amount you withdraw. Keep in mind, however, that taking a loan may be costly and may reduce the funds you ultimately have available at retirement. The most you can borrow from your account is 50% of your vested account balance, not to exceed $50,000. The minimum loan amount is $1,000. You pay the money back into your account, plus interest, through after-tax payroll deductions. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow in the future. You may have one loan outstanding at a time. The cost to initiate a loan is $75 and there is a quarterly maintenance fee of $6.25.

may withdraw funds only if you: • Terminate your employment • Become permanently disabled • Have a severe financial hardship

Any funds you receive before age 59 1 / 2 may be subject to current income taxes and possibly a financial penalty. If you leave Petco, you may avoid the financial penalty and defer paying taxes on your distribution by rolling it over into another employer’s qualified plan.

5