IQVIA Benefits Handbook
HOW THE PLAN WORKS
The 401(k) Plan makes it easy to save for your retirement. The Plan offers you several savings advantages, including:
  • Convenient payroll deductions: You may contribute from 1% to 50% (90% if making catch-up contributions) of your salary each year, up to applicable IRS limits. Regular elective deferrals under the 401(k) Plan are made on a pre-tax basis as are any automatic deferrals, if applicable. You may also elect to make Roth post-tax contributions and after-tax elections. Your combined regular pre-tax and Roth post-tax contributions cannot exceed the maximum annual deferral amount ($20,500 for 2022, or $27,000 if you are eligible to make catch-up contributions). In addition, any after-tax contributions cannot exceed the annual IRS defined contribution limit ($61,000 for 2022) when combined with your regular pre-tax and Roth post-tax contributions and company matching contributions for the year.
  • Tax deferrals: You do not pay taxes on regular, pre-tax contributions or any earnings on your account until distribution. Although Roth contributions are made on a post-tax basis, if you meet the requirements for a qualified Roth distribution (which includes leaving your Roth contributions in the 401(k) Plan for at least five years) you will not be taxed on earnings on your Roth contributions. Like Roth post-tax contributions, after-tax contributions go into the Plan on an after-tax basis with earnings accumulating tax-free; however, unlike Roth accounts, the earnings on after-tax contributions are subject to applicable income taxes when withdrawn.
  • Investment choices: The Plan offers you a broad selection of investment funds for your savings and an opportunity to change your investments on a daily basis.
  • Access to your money: You may borrow or withdraw money from your 401(k) account before retirement (subject to certain requirements).
  • Vesting: You are always 100% vested in your contributions. You vest in company contributions based on your years of service.
  • Distribution of your account: If you leave the company or retire, the full value of your vested account is available to you.