IBM 401 (K) PLUS PLAN Contribution & Employer Match

IBM 401 (K) PLUS PLAN Contribution & Employer Match

INTERNATIONAL BUSINESS MACHINES CORPORATION provides the following retirement savings benefits to its employees:

IBM 401 (K) PLUS PLAN Average Participant Retirement Account Value

In 2023, the average participant retirement account value for IBM 401 (K) PLUS PLAN is $348,592.00

IBM 401 (K) PLUS PLAN Estimated Average Employee Contribution Amount

In 2023, the estimated average employee contribution amount per participant for IBM 401 (K) PLUS PLAN is $5,662.00. If you contribute an amount exceeding this, you have saved more than your colleagues. Congratulations! Keep up the good work. Otherwise, you might want to consider contributing more to ensure a better retirement future.
362,394.00: this is the amount you will have accumulated 20 years later if you annually contribute the average contribution amount 5,662.00 in IBM 401 (K) PLUS PLAN, assuming a 10%* annual return.

2023 & 2024 401(k) contribution limits by IRS

 Pretax and roth employee contributionsEmployee and employer contributions combinedCatch-up contributions (in addition to the employee and employer combined limit, age 50 and over)
401(k) contribution limit for 2023$22,500$66,000$7,500
401(k) contribution limit for 2024$23,000$69,000$7,500

$1,440,056: this is the amount you will have saved 20 years later if you contribute the maximum of $22,500 annually for 20 years, assuming a 10%* annual return.

$4,224,165: for those who can maximize employee and employer annual $66,000 contributions for 20 years, assuming a 10%* annual return, you will be 3 times richer!

Use the 401(k) Savings Calculator to determine how much your contributions will accumulate over time.

Employer match in IBM 401 (K) PLUS PLAN

An employer match is deemed as ‘free’ money wherein your employer contributes additional funds to your allocated retirement savings plan. The matching amount can frequently be several percentage points of your compensation. Don’t avoid this free salary ‘raise’.

IBM 401 (K) PLUS PLAN Total Employer Contribution and Match Rate

In 2023, IBM 401 (K) PLUS PLAN allocates $538,656,721.00 to match its employees' contributions, providing an employer match rate of 56.39% of their contributions

IBM 401 (K) PLUS PLAN Estimated Average Employer Match

In 2023, the estimated average employer match for an employee in IBM 401 (K) PLUS PLAN is approximately $3,269.00
Investing in this additonal $3,269.00 for 20 years would give you extra $209,258.00, assuming a 10% annual return.

IBM 401 (K) PLUS PLAN Contribution & Match Policy

  • Employee Contributions:

    • Newly hired employees are automatically enrolled to contribute 5% of eligible salary and performance pay after approximately 30 days, unless they opt out.
    • For new hires as of January 1, 2023, eligibility for automatic and matching contributions requires completing one year of service.

  • Employer Matching Contributions:

    • Employees eligible under the Pension Credit Formula (as of December 31, 2007) receive:
      • 6% matching contribution
      • 4% automatic contribution
    • Employees eligible under the Personal Pension Account receive:
      • 6% matching contribution
      • 2% automatic contribution (Note: the 2% automatic contribution was eliminated effective January 1, 2023; these employees now receive a 5% match and a 1% automatic contribution.)
    • Employees hired or rehired on or after January 1, 2005, receive:
      • 5% employer matching contribution
      • 1% automatic contribution.
    • A "Special Savings Award" of 5% of eligible compensation is added at year-end for non-exempt employees continuously employed since December 31, 2007.

  • Roth 401(k) and After-Tax 401(k) Contributions:

    • Roth 401(k) and after-tax 401(k) contributions are allowed

  • Contribution Timing:

    • Effective January 1, 2023, matching and automatic contributions are made each pay cycle to eligible participants.

  • Recent Amendments:

    • The IBM 401(k) Plus Plan was amended on January 1, 2024. Further details are referenced in Note 9 - Subsequent Events.

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