Save for your future
Our 401(k) Retirement Savings Plan through Fidelity helps you save money for retirement while providing tax benefits now or later. The plan allows three types of contributions: traditional pre-tax, Roth, and After-Tax with Roth in-plan conversion. Each one has different tax advantages and will help you keep more of your dollars in your pocket so you can enjoy a nice, big nest egg when you’re ready to retire. And, our company 401(k) match will help you get there! It’s literally free money!
What’s a 401(k), you ask? Here’s some basic information you need to know before you get started. The 401(k) is a company-sponsored retirement savings plan that allows you to make payroll contributions directly into your savings account.
You can contribute up to 75% of your eligible compensation (100% if you’re age 50+), up to the IRS limit each year. For 2022, the IRS limit is $20,500* for traditional pre-tax and Roth contributions combined. If you’ll be age 50+ as of December 31, 2022, you can contribute an additional $6,500 in catch-up contributions. All participants can contribute an additional $34,400 on an After-Tax basis.
On top of that, ServiceNow offers a company match on your pre-tax and/or Roth contributions! The match is 50% of the first 4% of your annual eligible earnings, up to IRS limits. For each pay period contribution you make to the Plan, the employer match is capped at a net 2% of your eligible earnings. If you’re not already saving 4% between pre-tax and Roth, you’re missing out on a valuable part of how ServiceNow helps you build financial security. After-Tax contributions are not eligible for the employer match.
The contributions you make and the match from ServiceNow are always 100% vested.
*These IRS limits apply to contributions made to any 401(k) Plan during the calendar year, including a prior employer’s 401(k) Plan.
How 401(k) contributions differ
|Pre-tax 401(k) contributions||Roth 401(k) contributions||After-tax 401(k) with Roth in-plan conversion contributions|
|Contributions are deducted from your paycheck before taxes are withheld, reducing your taxable income today.||Contributions are deducted from your paycheck after taxes are withheld.||Contributions are deducted from your paycheck after taxes are withheld but deposited into a pre-tax account.*|
|In the future, you pay income tax on your withdrawals, including any capital gains.||In the future, withdrawals are tax-free if you own the account for at least five years and have reached age 59 ½.||In the future, income taxes will be owed on all earnings; no income tax is owed on the original contributions.|
|The company match is 50% of the first 4% of your 401(k) contribution each pay period up to the IRS limits to help your savings go even further.||The company match is 50% of the first 4% of your 401(k) contribution each pay period up to the IRS limits to help your savings go even further.||After-Tax contributions are not eligible for the company match.|
*Requires that you contact Fidelity and request the funds be converted.
Managing your 401(k)
Good news! Employees and interns are eligible to participate immediately upon your date of hire. Employees are auto-enrolled at a 6% pre-tax contribution rate after 30 days of employment, but interns are not auto-enrolled. You can change this at any time, so don’t worry if your financial situation changes throughout the year.
Flexibility. When making your contribution election, you have the ability to select a different contribution rate and contribution type for your bonus or commission pay.
Annual Auto Increase. If you’re contributing 1% to 9% of your pay to your 401(k), your deferral election will automatically increase by 1% each year (in March) until you achieve a deferral rate of 10%.
Enroll or manage your 401(k) through Fidelity’s website at netbenefits.fidelity.com
For questions, contact Fidelity Customer Support: 800-835-5095