What’s happening

With this move, some of your 401(k) Plan’s key features will remain the same. But there are some differences to be aware of, including a new investment option menu.

What’s changing

Contribution amount changes
Under the Microsoft 401(k) Plan, contributions can only be made as a percentage of your pay in increments of 1%, and the maximum aggregate contribution percentage allowed is 65% of eligible compensation.

After-tax contributions
In addition to pre-tax and Roth contributions1, you will have a new contribution option: after-tax (non-Roth) contributions. Although they are limited as well, after-tax (non-Roth) contributions are not subject to the same IRS limits that govern pre-tax and Roth contributions, so they give you the chance to save more in your Microsoft 401(k) Plan account. After-tax (non-Roth) contributions are not eligible for company matching contributions. See the Frequently Asked Questions tab for details.

Roth in-plan conversions
The Microsoft 401(k) Plan offers Roth in-plan conversions, which allows you to convert pre-tax, company match, rollover, and after-tax (non-Roth) balances to Roth within the Plan2 for potentially greater tax advantaged savings. See the Frequently Asked Questions tab for details.

Investment option menu
The Microsoft 401(k) Plan offers target date funds, a core menu of options across asset classes, and access to more options through Fidelity BrokerageLink®. View the Investment Options Brochure to learn more.

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically become more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

Self-directed brokerage account
Under the Microsoft 401(k) Plan, you’ll have access to Fidelity BrokerageLink®, a self-directed brokerage account. BrokerageLink® gives you access to thousands of investment options beyond those available in the Microsoft 401(k) Plan core line up. See the BrokerageLink® Fact Sheet for details.

Service center phone number and URL
The Microsoft 401(k) Plan is recordkept by Fidelity Investments. Beginning the week of December 25, 2022, you’ll use a new phone number to call about your Microsoft 401(k) Plan account: 1-888-810-MSFT (6738). You will be able to access your account online at www.netbenefits.com/microsoft, where you can also try new planning tools that can help you feel more confident about your finances. NetBenefits also offers an easy-to-use app.

What’s not changing

Matching contribution amount
Each pay period, Double Fine will continue to match 25% of every pre-tax and/or Roth dollar you contribute to the Plan, up to the IRS limit for regular deferrals which is $20,500 for 2022. Note that, under the Microsoft 401(k) Plan, catch-up and after-tax (non-Roth) contributions are not eligible for matching contributions.

Vesting
You will continue to be immediately 100% vested in your matching contributions.

Loans
You will continue to be able to request loans from your account balance. The Microsoft 401(k) Plan allows you to hold two outstanding loans at the same time: one general purpose loan and one principal residence loan.

1 Pre-tax and Roth contributions are limited to $20,500 in 2022 (or $27,000 if you’re 50 or older).
2 A distribution from a Roth 401(k) is federally tax free and penalty free, provided the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability or death.