401(k) Plan: My Financial Wellbeing

2023 Plan Information

10 Must-Knows about the 401(k) Plan for Your Financial Wellbeing

Saving for your future at every stage of life is important. To help you meet your goals, the Firm sponsors the Morgan Stanley 401(k) Plan, a convenient way to invest and save for retirement. And growing your retirement nest egg is that much easier with plan features such as Firm matching contributions, before-tax and after-tax Roth options, and a menu of funds with low fees. Whether retirement is 30 years away or around the corner, the Firm helps you build a solid tomorrow.

1. Beginning with the 2021 Plan Year, the Firm increased its maximum 401(k) company match from 4% to 5% of eligible pay for certain participants*. Eligible employees received the increased match this past January.

* Employees who receive a 2% fixed contribution or have eligible pay above $275,000 are ineligible for the increased match.

2. The Plan currently offers a menu of 40 investment funds with preferred fees that are generally lower than what you could find on your own.

Good-to-know: If you don’t want to choose specific funds or monitor your Plan account, the professionally managed State Street Target Retirement Date Funds might be right for you.

To learn more, review the Investment Guide and Fee Disclosure.

3. You may contribute up to 50% of your eligible pay – including salary, commissions and cash bonuses – and set a different percentage for each type of pay if you make before-tax contributions.

4. For 2022, the IRS’s employee contribution limit is $20,500. Employees who are 50 and older may make additional “catch-up” contributions up to $6,500 for a total of $27,000.

Good-to-know: You may make after-tax, non-Roth contributions beyond the IRS limits above and benefit from the Plan’s low fees. In 2022, total employer and employee 401(k) contributions may not exceed $61,000 (age 49 or younger) or $67,500 (age 50 and older).

5. You may take up to two 401(k) loans at once — and continue to repay outstanding loans after leaving the Firm.

Good to know: You may take a 401(k) loan to purchase your primary residence and take up to 15 years to repay the loan (other loans must be repaid within 5 years).

6. The Plan allows for unlimited hardship withdrawals for an immediate and heavy financial need.

7. You have the option to convert all or a portion of your non-Roth 401(k) account balances to a Roth 401(k) account within the Plan (the number of in-plan conversions is not limited). When making an in-plan conversion, you will owe taxes on before-tax amounts you convert that year. Thereafter, your Roth 401(k) account — including any investment earnings — is tax-free if you meet the Roth distribution requirements.

8. While you are employed by the Firm, you may take a distribution from the Plan at any time beginning at age 59½. You may also keep your money in the 401(k) plan and benefit from the low fees beyond age 72, the required minimum distribution age.

9. If you leave the Firm, your paycheck contributions are always yours to keep – regardless of your tenure. You are fully vested in company contributions after 3 years of service with the Firm. Any unvested company contributions may be forfeited after you leave the Firm.

Benefit Center Website

View your 401k balance, adjust paycheck contributions
or change investments at any time

Type benefits/ in your intranet browser
Visit ms.com/benefits (when not on the Firm network)

HR Services | 877-674-7411 | Web chat (from the Firm network)

Any inconsistency between this communication and the terms of an official plan document will be governed by the plan document. Morgan Stanley and its benefit plans are not responsible for any data errors or processing delays. The plan administrator may correct any errors at any time. The information contained in this document is general in nature, is not individual tax advice and may not be used to avoid any tax or tax penalty. Tax laws are complex and may change, and their application may vary based on the circumstances. Morgan Stanley and its benefit plans do not provide tax or legal advice. You are responsible for consulting your own advisors. The plan administrator may require you to verify your and your dependents’ data. Providing false or misleading information may lead to legal or disciplinary action by Morgan Stanley, including employment termination and cancellation of executive compensation. This statement does not guarantee coverage; the plan administrators have ultimate authority for determining eligibility. Check your confirmations and statements to ensure that your elections are correctly reflected. Morgan Stanley’s benefit plans may be amended or discontinued at any time, including to curtail benefits for some or all covered individuals.