IBM 401K matching

Oracle / Eng
vinny

Oracle Eng

PRE
NVIDIA
vinnymore
Feb 28 4 Comments

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?

comments

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TOP 4 Comments
  • New zv9973
    I'd read that as you're set to a minimum of 5%, probably in a core cash or MM fund, coming out of your own gross. IBM will contribute a minimum of 1% of your salary to your 401k a year, and will match you 100% on the default 5%.
    Feb 28 0
  • IBM / Eng littlered
    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%?
    Jul 26 0
  • IBM oyuY86
    First 5% 100% match and 1% free $
    Mar 1 0
  • Oracle / Eng
    vinny

    Oracle Eng

    PRE
    NVIDIA
    vinnymore
    OP
    Thanks
    Feb 28 0