Employee 401(k) Plan Contributions
You can contribute 1% – 50% of your eligible compensation, up to the annual Internal Revenue Service (IRS) contribution limit, whichever is lower. Pre-tax contributions are automatically deducted from your paycheck before you pay income taxes. If you do not enroll within 30 days of becoming eligible, you will be automatically enrolled at a pre-tax contribution rate of 6% of your eligible compensation.
You are 100% vested in your contributions. The value of your contributions and earnings are yours when you leave the company, regardless of your years of service.
Earnings on your entire account balance grow on a tax-deferred basis. Taxes are assessed only when you take a distribution from the plan.
Employer Matching Contributions
Pearson matches dollar for dollar on the first 3% of your pre-tax contribution election plus $0.50 for every dollar on the next 5% of you pre-tax contribution election.
You are 100% vested in Pearson’s contributions after three years of service. (Between 1–2 years of service you are 33-1/3% vested, and between 2–3 years of service you are 66-2/3% vested).
Watch this webinar at the link below to learn more about 401(k) highlights: