401(k) Employee Contributions

2020 and 2021 Plan Year Information

Employee Contributions

You can contribute up to the maximum amount of 30% of your eligible pay or the pre-set IRS limit ($19,500 for 2021), whichever is less.

If you will be age 50 by December 31, consider contributing extra catch-up contributions up to the IRS limit ($6,500 for 2021) to help boost your retirement savings.

However, the annual IRS limits apply to contributions you make to any 401(k) Plan during the year. Therefore, if you contributed to another employer’s 401(k) Plan during the year, you must take into consideration any contributions made to that plan to ensure that you don’t exceed the IRS annual maximum.

Rollover Contributions

You may roll over certain distributions from other plans to the 401(k) Plan, such as distributions from your prior employer’s 401(k) Plan.

However, the annual IRS limits apply to contributions you make to any 401(k) Plan during the year. Therefore, if you contributed to another employer’s 401(k) Plan during the year, you must take into consideration any contributions made to that plan to ensure that you don’t exceed the IRS annual maximum.

See the 401(k) Plan Summary Plan Description for rollover rules and directions.

Company Contributions

Company Match: Morgan Stanley, in its discretion, matches 100% of your eligible contribution to the 401(k) Plan, up to 4% of your eligible pay (eligible pay is limited by the IRS). Don’t miss out — contribute at least 4% to get the full match.

If your pay does not exceed $100,000 and you are not a Financial Advisor, you may be eligible for an additional non-matching Company Contribution that can help you grow your retirement savings even faster.

Avoid Penalties

Since 401(k) plans are designed to help you save for retirement, there are penalties for taking your money out early. You’ll owe income taxes on the total amount you withdraw to the extent such amounts are taxable, and you may also owe a 10% early withdrawal penalty. The Plan has both loan and hardship withdrawal options in case of financial emergency.

Make Changes to Your 401(k)

To set or change your contribution rates in the 401(k) Plan, visit the Morgan Stanley Benefit Center website and go to Savings and Retirement > 401(k) Savings Plan > Change Contributions and designate the rate of pay by pay type you want to contribute.

To set your contribution rates to increase automatically, visit the Morgan Stanley Benefit Center website and set your initial contribution rates. Then, follow the instructions and enter annual increase and target rate percentages.

To choose or change your investment mix or investment elections for future contributions, visit the Morgan Stanley Benefit Center website and go to Savings and Retirement > 401(k) Savings Plan > Change Investments and follow the instructions.