401(k) Savings

Save now to prosper later

Save for the future today while getting tax breaks (and enjoying employer matching contributions) by participating in the 401(k) plan.

Effective March 1, 2017, we’re increasing our match to 100%, up to 6% of your salary (with a $5,000 max). The details below reflect the current match and will be updated on March 1, 2017.

How the 401(k) works
Enrolling in the 401(k)
Contribution options
Free money from Salesforce
Investment options
Rollovers

PTO video

How the 401(k) works

  • Contribute 1%–50% of your eligible compensation (base salary + bonuses + commissions), up to the IRS limits ($18,000 in 2017). If you’re age 50 or older, you can make extra contributions each year ($6,000 in 2017). For every $1 you contribute, Salesforce contributes 50 cents—up to 6% of your pay, or a maximum $4,000 per calendar year.
  • Keep contributing (maybe saving a bit more each year) to let your account grow tax-free as your investments gain returns.
  • Choose from several professionally managed funds—taking the worry out of selecting the best performers—or opt for a self-managed account. You can manage your investments through Fidelity.
  • Use flexible savings opportunities to make contributions either pretax or post-tax (known as a Roth account).
  • Withdraw money from your 401(k) account with no penalty when you reach age 59½. If you take a loan or withdraw money before then, you’ll pay a penalty and taxes on that amount.

Enrolling in the 401(k)

As a new hire, you can enroll in the 401(k) plan any time after your first full pay period. If you don’t actively enroll, you’ll be automatically enrolled in the plan 30 days after your hire date, at 3% contributions.

Go to Fidelity to enroll in the plan or change your contributions

Contribution options

You can contribute to the 401(k) plan two ways: pretax and post-tax (also known as a Roth plan).

With the pretax option:

  • Contributions are deducted from your paycheck before taxes are withheld, reducing your taxable income.
  • You can contribute up to to 50% of your eligible compensation, up to the IRS limit ($18,000 in 2017). If you’re age 50 or older, you can contribute an extra $6,000.
  • Withdrawals are subject to income tax.

With the post-tax or Roth plan:

  • Contributions are deducted from your paycheck after taxes are withheld.
  • You can contribute up to to 50% of your eligible compensation, up to the IRS limit ($18,000 in 2017). If you’re age 50 or older, you can contribute an extra $6,000.
  • Withdrawals are tax-free if you own the account for at least five years and have reached age 59½.

Free money from Salesforce

For each $1 you contribute to your 401(k) savings plan account, Salesforce will contribute 50 cents, up to 6% of eligible pay and a maximum of $4,000 per year. If you’re not already saving 6%, you’re missing out on help from Salesforce to build financial security.

Here is an example of how the matching contribution works.

  • Annual salary: $70,000
  • Contributing 8% to the 401(k): $5,600 ($233.33 per paycheck)
How the match works How the match applies Salesforce contribution
50 cents to $1 on the first 6% of eligible earnings; up to a maximum of $4,000 $70,000 times 6% times $0.50 $2,100

Totals

Annual Employee contribution: $5,600
+ Annual Salesforce match: $2,100
Total deposited to your 401(k): $7,700

Investment options

You have complete control over how you invest all funds in your 401(k) account—your contributions, Salesforce’s matching contributions, and any amount that you roll over from another account. For detailed information about your investment options, review the Investment Options section (starting at page 5) of Your Guide to Getting Started [PDF].

Rollovers

To rollover 401(k) contributions from your previous company's 401K plan:

  1. Contact your former employer's 401(k) plan administrator and request a rollover distribution. Checks should be made payable to "FIIOC—FBO your name."
  2. Complete the rollover, which you can get by logging into Fidelity or calling 1-800-835-5097.
  3. Once you've received your rollover distribution check, send the check along with the form to

    First Class Mail with Stamp:
    Fidelity Investments
    Client Service Operations
    P.O. Box 770003
    Cincinnati, OH 45277-0065

    OR

    Overnight Address:
    Fidelity Investments
    Client Service Operations (KC1F-L)
    100 Crosby Parkway
    Covington, KY 41015