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MICROSOFT 401(K) PLAN

- 50
  
  %
  
  How much will Microsoft contribute?
  
  Microsoft adds a 50% matching contribution to your pre-tax and Roth 401(k) contribution.
- $
  
  19500
  
  How much can I contribute?
  
  The IRS limits the total amount you can contribute each year to a 401(k) plan. Limit is $19,500 for 2020.
- $
  
  6500
  
  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 $6,500 for 2020.
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SPECIAL FEATURE OF MICROSOFT’S 401(k) PLAN

Participants can contribute an extra ~$27,750 (for 2020) after-tax that can potentially be converted to a Roth IRA.

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- Plan Eligibility
  
  Regular and retail services employees who are on U.S. payroll and are at least age 18.
- No Vesting Period
  
  Participants are fully vested in Plan accounts at all times.
- Contributions
  
  Employees may contribute up to 65% of their eligible compensation subject to prescribed annual limits.
- Microsoft’s Contribution
  
  Microsoft will make a matching contribution equal to 50% of your pre-tax and Roth contributions up to the maximum annual IRS limit ($19,500 for 2020).
- Plan Investment Options
  
  Microsoft’s 401(k) plan has over 20 different investment options; including, mutual funds, common collective trusts, and separately managed accounts. Plus a brokerage account option. The plan is administered by Fidelity.

Investments Available
Individual Funds/Trusts
- BlackRock Short-term Investment Fund
- Fidelity Contrafund Pool
- Fidelity Growth Company Pool
- PIMCO All Asset All Authority
- PIMCO Inflation Response Multi-Asset Response
- Vanguard Russell 1000 Growth Index Trust
- Vanguard Russell 1000 Value Index Trust
- Vanguard Russell 2000 Growth Index Trust
- Vanguard S&P 500 Index Trust
- Vanguard Short-Term Bond Index Fund (Signal)
Target Retirement Portfolios
* Microsoft 401k plan participates are invested in collective trusts managed by the Blackrock Institutional Trust Company. Link to Institutional share class of LifePath funds provided for illustrative purposes only.
Separately Managed Accounts
- Artisan Mid Cap
- DFA Small Mid Value
- PIMCO Total Return
- International Growth
- International Value

What do other Microsoft employees invest in?

Microsoft employees invested in the following funds based on public filings as of 12/31/2019.

Investment	Value ($ millions)	%
Vanguard S&P 500 Index Trust	$ 2,976	11%
Microsoft Common Stock	$ 2,561	9%
Fidelity Growth Company Pool Class 3	$ 2,397	9%
BlackRock LifePath Index 2040	$ 2,203	8%
BlackRock LifePath Index 2050	$ 1,839	7%
Fidelity Contrafund Pool Class 3	$ 1,694	6%
BlackRock LifePath Index 2030	$ 1,460	5%
Artisan Mid Cap Account (SMA)	$ 1,459	5%
Vanguard Russell 1000 Value Index Trust	$ 1,271	5%
Vanguard Russell 1000 Growth Index Trust	$ 1,213	4%
All other	$ 8,300	30%
Total Assets (excluding participant loans)	$ 27,373	100%

Source: Form 5500 filed July 23, 2020

See what Microsoft employee’s invested in the prior year (2018)

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