I have a question on IBM's 401K plan: From www-01.ibm.com/employment/us/benefits/2019_Benefits_and_HR_Programs.pdf: • Automatically enrolled into the before-tax 401(k) at 5% of eligible earnings after approximately one month on payroll, if no action taken • May increase contribution up to 80% of pre-tax earnings (subject to IRS limits) or may stop participation at any time • Generally, after one year of service, IBM will: o Contribute 1% to your account regardless of your savings levels o Match 100% of the first 5% of your Pre-tax or Roth contributions o The IBM match will be deposited on Dec. 31 (or the last business day of the year) for employees on active payroll as of Dec. 15. In simple English, I got 5% 401K automatically, after 1 year there will be additional up to 5% match for 401K or Roth?
First 5% 100% match and 1% free $
Question: I started my career with IBM last month (June). I was wondering if I would receive 1% matching by 12/31? I am contributing 5% to my ROTH right now. But I'm confused on the definition of 1 year service term. I know that I won't receive the 5% matching but will I receive that 1%?
No.
Thanks