Your 401(k) Plan

Both you and FedEx make contributions to the 401(k) Plan. And when you save in the 401(k), you are taking one of the most important steps you can to create a comfortable retirement.

How the 401(k) works

  • You become eligible to participate in the 401(k) Plan on the exact day you have one month of service and you are at least age 21.
  • You set aside money from your eligible earnings on a pre-tax basis.
  • Sources of contributions include:
    • Pre-tax contributions
    • After-tax contributions (for employees who are not highly compensated employees as defined by the IRS)
    • Catch-Up (if eligible)
    • Rollover
  • Savings grow tax-deferred.
  • FedEx matches a portion of your Pre-tax contributions and, if eligible, Catch-up contributions.
  • The 401(k) Plan provides automatic enrollment, an auto annual savings increase feature and a default investment selection.
  • You will be invested automatically in a Target Retirement Fund closest to the year you reach age 65, unless you select your own 401(k) Plan investments.

One step … and you're on your way

FedEx has made it easier for you to save in the 401(k) Plan with One Step* – provided by Vanguard. One Step automatically enrolls you in the 401(k) Plan when you become eligible and includes automatic enrollment and automatic annual increases as well as a default investment selection.

*Employees who participate in the RSP for Puerto Rico (093851) are not eligible for One Step.

Auto enrollment. With auto enrollment, eligible employees are automatically enrolled at a Pre-tax contribution rate of 3% of eligible earnings after attaining age 21 and completing one month of employment.

To boost your savings, you might consider saving more than the automatic contribution rate. You can increase your 401(k) contributions voluntarily and at any time, up to 50% of your earnings or the IRS annual limit. Go to your account at to make the change.

If you’ve opted out of automatic enrollment through One Step, you can enroll on your own at any time at or by calling Vanguard at 1.800.523.1188. Hearing impaired employees may call 1.800.749.7273.

Auto annual increases. One Step makes it easier to save more each year, too. When you’re automatically enrolled, your payroll deduction rate will increase automatically by 1% each March until it reaches 10% of your eligible earnings or the IRS annual limit. You can change the March auto increase date to another month at any time by going to your account at Keep in mind, you are always in control and can opt out at any time by contacting Vanguard.

And guess what? You can choose to increase your contributions automatically each year even if you were not enrolled in the 401(k) Plan through One Step. Sign up and your increase will occur each March, or you can select another month for the auto increase. Log in to your account at Then go to: Change paycheck deductions, click Continue to go to the next page where you can elect the auto annual increase feature.

Default investment selection. If you do not choose your own investments, your contributions will be invested automatically in a date-specific Vanguard® Target Retirement Fund based on your age and an anticipated retirement age of 65. A Target Retirement Fund is designed to be the single investment in one’s account.

How do you determine what investment funds are appropriate for you?

A diverse lineup of investment options is available in the
401(k) Plan, and Vanguard's Investor Questionnaire and the Personal Online Advisor, powered by Financial Engines, are tools that can help you with your investment decisions.

  • You can choose from three investment tiers:
    • All-in-one options – Vanguard® Target Retirement Funds.
    • Core options – index-based and money market funds, plus a stable value investment.
    • Supplemental options – actively managed funds.
  • You are always 100% vested in the money you contribute.

Your summary plan description, the Your Retirement Benefits (YRB) book, provides complete details on all retirement benefits at FedEx.

NOTE: All investing is subject to risk. Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The investment allocation for each Target Retirement Fund factors in average life expectancy after the target date is reached and, as a result, continues to have exposure to equities during the retirement years, to recognize the still-lengthy investment horizon and to fend off inflationary pressure. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

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