JPMORGAN CHASE 401(K) SAVINGS PLAN Contribution & Employer Match

JPMORGAN CHASE 401(K) SAVINGS PLAN Contribution & Employer Match

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION 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 JPMORGAN CHASE 401(K) SAVINGS 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’.

JPMORGAN CHASE 401(K) SAVINGS PLAN Contribution & Match Policy

1. Employee Contributions:

   • Full-time employees are eligible to enroll on their first day of employment, and part-time employees working 20+ hours per week are eligible after 60 days.
   • Employees can contribute up to 50% of their eligible compensation (in 1% increments) on a pre-tax and/or Roth 401(k) basis, subject to legal limits.
   • Catch-up contributions are allowed for employees aged 50 and older.
   • Automatic enrollment is set at a 3% before-tax contribution rate, with annual automatic increases of 1% until reaching 10% (previously 5% before April 1, 2021).

2. Employer Contributions & Match:

   • After one year of service, the employer provides a 100% match on employee contributions up to 5% of eligible compensation, provided the employee is still employed at the end of the calendar year.
   • Employees with total annual cash compensation of $250,000 or more are ineligible for the matching contribution.
   • The employer also provides an annual profit-sharing contribution (automatic pay credits) based on a percentage of eligible compensation, capped at $100,000 annually, for employees who have completed one year of service.

3. Vesting and Eligibility:

   • Full-time employees are eligible from the first day of employment, while part-time employees qualify after 60 days of service.
   • Employees are automatically enrolled in the plan unless they opt out within 31 days.
   • Matching contributions and non-matching profit-sharing contributions are vested according to the plan\'s terms, typically requiring completion of one year of service and employment at year-end.

4. Roth 401(k):

   • The plan allows for Roth 401(k) contributions, letting employees contribute up to 50% of their eligible compensation on an after-tax basis, alongside or instead of pre-tax contributions.
   • Both pre-tax and Roth contributions are eligible for the employer match once the one-year service requirement is met.

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