IBM 401(k) Plus Plan | Build Wealth

IBM 401(k) Plus Plan | Build Wealth

IBM 401(k) Plus Plan

- $
  
  23000
  
  How much can I contribute?
  
  The IRS limits the total amount you can contribute each year to a 401(k) plan. Limit is $23,000 for 2024.
- $
  
  7500
  
  What are “catch-up” contributions?
  
  For those over 50 years old, you can make additional “catch-up” contributions to your 401(k) plan. Limit is $7,500 for 2024.
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Important Changes Coming in 2024

IBM eliminates matching contributions to 401(k) plan.

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- IBM’s 401(k) Plus Plan
  
  At the end of 2021, the IBM 401(k) Plus Plan had 166,735 participants with account balances and $65.6 billion in assets.
- Automatically Enrolled
  
  New employees automatically enrolled into the before-tax 401(k) at 5% of eligible earnings after approximately one month on payroll, if no action taken.
- No Vesting Period
  
  Participants are fully vested in Plan accounts at all times.
- IBM Matching
  
  Generally, after 1 year of service, IBM will: contribute 1% to your account regardless of your savings levels; match 100% of the first 5% of your Pre-tax or Roth contributions; deposit match at year-end to those on active payroll as of Dec. 15.
- IBM 401K Plus Plan Investment Options
  
  IBM’s 401(k) Plus plan has ~33 primary investment options; including, mutual funds, collective trusts, and separate accounts. Plus, >150 other “Expanded Choice” mutual funds. Fidelity provides record keeping and participant services.

Investments Available
Individual/Commingled Funds
- AQR Global Risk Parity Enhanced Liquidity Fund
- Bridgewater All Weather Portfolio III, LTD
- IBM Stock Fund
- SSGA Government Short-Term Investment Fund
- PanAgora
- Vanguard Emerging Markets Stock Index Fund Institutional Plus
- Vanguard Employee Benefit Index Fund
- Vanguard European Stock Index Trust
- Vanguard Pacific Stock Index Trust
- Vanguard Russell 1000 Growth Index Trust
- Vanguard Russell 1000 Value Index Trust
- Vanguard Russell 2000 Growth Index Trust
- Vanguard Russell 2000 Value Index Trust
- Vanguard Total Stock Market Index Trust
- plus, about another 150 Expanded Choice – Mutual Funds
Separately Managed Accounts
- Interest Income Fund
- JP Morgan High Yield Debt
- Loomis, Sayles Long Term Credit
- Loomis, Sayles Total Bond Market
- Neuberger Berman Total Bond Market
- PIMCO High Yield and Emerging Markets Bond
- PIMCO Total Bond Market
- Prudential Emerging Markets Debt
- RW. Baird & Co. Total Bond Market
- SSGA Inflation Protected Bond
- SSGA International Real Estate Index
- SSGA Real Estate Investment Trust
- SSGA Small/Mid Cap Stock Index
- SSGA Total International Stock Market Index
- Western Asset Management Long Term Credit
- Western Asset Management Total Bond Market

What do other IBM employees invest in?

IBM employees invested in the following funds based on public filings as of 12/31/2021.

Investment	Value ($ millions)	%
Interest Income Fund	$ 9,934	15%
Vanguard Employee Benefit Index Fund	$ 9,032	14%
Vanguard Total Stock Market Index Trust	$ 7,912	12%
SSGA Total International Stock Market Index	$ 5,517	8%
SSGA Small/Mid Cap Stock Index	$ 4,890	7%
SSGA Inflation Protected Bond	$ 2,762	4%
Vanguard Russell 1000 Growth Index Trust	$ 2,657	4%
Neuberger Berman Total Bond Market	$ 1,898	3%
SSGA Real Estate Investment Trust	$ 1,374	2%
Loomis, Sayles Total Bond Market	$ 1,221	2%
All other	$ 18,251	28%
Total Assets (excluding participant loans)	$ 65,448	100%

Source: Form 5500 filed July 8, 2022

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