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 after-tax, and post-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, up to the IRS limit each year. For 2021, the IRS limit is $19,500 for traditional pre-tax and Roth contributions combined. If you’ll be age 50+ as of December 31, 2021, you can contribute an additional $6,500 in catch-up contributions. All participants can contribute an additional $36,000 on a post-tax basis.
On top of that, ServiceNow offers a company match on your pre-tax and/or Roth after-tax contributions! The match is 50% of your 401(k) contribution each pay period up to an annual company maximum match of $2,500 to help your savings go even further.
The contributions you make and the match from ServiceNow are always 100% vested.
How 401(k) contributions differ
|Pre-tax 401(k) contributions||Roth 401(k) contributions||Post-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.|
*Requires that you contact Fidelity and request the funds be converted
Watch this video to learn more about the contribution options and how they impact your taxes.
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