THE BANK OF AMERICA 401(K) PLAN Contribution & Employer Match

THE BANK OF AMERICA 401(K) PLAN Contribution & Employer Match

BANK OF AMERICA CORPORATION provides the following retirement savings benefits to its employees:

2023 & 2024 401(k) contribution limits by IRS

$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 THE BANK OF AMERICA 401(K) 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’.

THE BANK OF AMERICA 401(K) PLAN Contribution & Match Policy

1. Employee Contributions:

   • All eligible employees (full-time, part-time, temporary) can make pre-tax and Roth (after-tax) contributions as soon as administratively possible after employment starts.
   • Contributions can be up to 75% of Plan-eligible compensation per pay period, with 2023 limits set at $22,500. An additional $7,500 is allowed for those aged 50 and older.
   • The Plan features automatic enrollment for new hires at a 3% deferral rate, with automatic annual increases of 1% up to 5%.

2. Employer Contributions & Match:

   • After 12 months of service, employees are eligible for a company match up to 5% of Plan-eligible compensation, allocated on a per-pay-period basis.
   • A year-end \"true-up\" matching contribution is also provided.
   • Additionally, the company contributes 2% of Plan-eligible compensation annually, increasing to 3% for employees with 10 or more years of service.

3. Vesting and Eligibility:

   • All employees are eligible to participate immediately, except interns hired on or after April 1, 2021, who must meet specific service hour requirements (1,000 hours in 12 months or 500 hours in two consecutive years starting from January 1, 2023).
   • Participants are fully vested in their contributions and the company’s matching contributions.

4. Roth 401(k):

   • The plan allows employees to make Roth (after-tax) contributions up to 75% of their Plan-eligible compensation, subject to annual IRS limits.
   • Both pre-tax and Roth contributions are eligible for the same employer match once the 12-month service requirement is met.

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