401(k) Plan
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!
401(k) basics
What’s a 401(k), you ask? Here’s some basic information you need to know before you get started.
A 401(k) is a company-sponsored retirement savings plan that allows you to make payroll contributions to help you save for whatever you’ve imagined for retirement.
You can contribute up to 75% of your eligible compensation (100% if you’re age 50+), up to the IRS limit each year. For 2023, the IRS limit is $22,500* for traditional pre-tax and Roth contributions combined. If you’ll be age 50+ as of December 31, 2023, you can contribute an additional $7,500 in catch-up contributions. All participants can contribute an additional $33,600 on an After-Tax basis. In addition, you must elect a separate Bonus election for your semi-annual bonus and commissions.
On top of that, ServiceNow offers a company match on your pre-tax and/or Roth contributions! The match is 50% of the first 6% 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 3% of your eligible earnings. If you’re not already saving 6% 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. Any contributions made to a prior employer’s 401(K) Plan must be reported to ServiceNow to ensure you do not exceed the IRS limit.
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)
A 401(k) is a company-sponsored retirement savings plan that allows you to make payroll contributions to help you save for whatever you’ve imagined for retirement.
You can contribute up to 75% of your eligible compensation (100% if you’re age 50+), up to the IRS limit each year. For 2023, the IRS limit is $22,500* for traditional pre-tax and Roth contributions combined. If you’ll be age 50+ as of December 31, 2023, you can contribute an additional $7,500 in catch-up contributions. All participants can contribute an additional $33,600 on an After-Tax basis. In addition, you must elect a separate Bonus election for your semi-annual bonus and commissions.
On top of that, ServiceNow offers a company match on your pre-tax and/or Roth contributions! The match is 50% of the first 6% 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 3% of your eligible earnings. If you’re not already saving 6% 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. Any contributions made to a prior employer’s 401(K) Plan must be reported to ServiceNow to ensure you do not exceed the IRS limit.
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
2022 Annual True Up
The 2022 401(k) employer match true up will appear in your account during the week of February 27, 2023 if you are due for a true up. A true up contribution is an employer contribution made to a participant’s account when the actual, total employer match contributed on a per pay period basis is less than the calculated employer match on an annual basis. A true up contribution ensures a participant receives the maximum annualized allowable amount of employer matching contributions, as intended by the Plan’s match formula of $0.50 up to 4% of eligible earnings.
To view your account balance, log into your account at Fidelity.