IQVIA Benefits Handbook
YOUR CONTRIBUTIONS
There are five ways you can contribute to the Plan:
- Pre-tax contributions from your pay through regular elective deferrals or automatic deferrals.
- Post-tax contributions from your pay through Roth elective deferrals.
- After-tax contributions from your pay through elective deferrals other than Roth deferrals.
- Rollover contributions from a previous plan.
- Catch-up contributions for participants age 50 or older, if you are already contributing the maximum elective deferral of 50% or will exceed the annual allowable limit.
For elective deferrals, your Compensation as defined by the 401(k) Plan includes your regular wages, bonuses, and overtime. It does not include:
Amounts realized from the exercise of a non-qualified stock option or when restricted stock (or property) held by an employee either becomes freely transferable or is no longer subject to substantial risk of forfeiture.
Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option (including the Company's Employee Stock Purchase Plan (the "ESPP")).
Non-regular wage amounts attributable to post-severance compensation and amounts attributable to certain fringe benefits under the applicable tax rules.
Federal tax laws limit the total amount of compensation that may be taken into account under the plan for certain purposes each plan year. For 2022, the maximum amount of compensation that may be counted for plan purposes (e.g., for calculating matching contributions) is $305,000. This limit may change in future years.
Contribution Limits
Each calendar year the IRS sets a maximum employee contribution amount. For 2022, the maximum amount is $20,500, which includes both regular pre-tax contributions and/or combined Roth post-tax contributions. If you reach the annual contribution limit, your 401(k) Plan contributions will be discontinued until the following January. IRS regulations also require that the plan cannot discriminate in favor of highly-paid employees and may require that highly-paid employees' contributions be limited to amounts below the maximum annual IRS limit and refunded in certain cases. If you are a highly-paid employee, you will be notified in the unlikely event that this situation occurs.
Catch-up Contributions
If you are age 50, or if you will turn age 50 during a plan year, then throughout the year you may make additional deferral contributions to your 401(k) account in the form of catch-up contributions. This is provided you are already contributing 50% to the Plan or will exceed the maximum annual contribution limit (e.g., $20,500 for 2022).
You may contribute up to an additional $6,500 of your eligible pay during 2022 as pre-tax or Roth catch-up. The amount is indexed annually for inflation. Matching contributions will not be made on catch-up contributions.
To make a catch-up contribution, call Fidelity Customer Services at 800-835-5097 or log on to www.401k.com.
Changing Your Contributions
You may change, stop or resume your elective deferral contributions at any time by calling Fidelity Customer Services at 800-835-5097 or online at www.401k.com.
You also may elect to have your contribution percentage automatically increased by a set amount each year by enrolling in Fidelity's Annual Increase Program. For more information on the Annual Increase Program, contact Fidelity Customer Services. (Unlike some 401(k) plans, the company has elected not to automatically increase the deferral percentages for automatic deferral elections each year. As such, the automatic deferral percentage will stay at the initial percentage unless an automatic enrollee affirmatively changes his or her deferral percentage.)
Although you can elect to stop or change future deferral contributions, you cannot change the designation of prior deferral contributions. In other words, you generally cannot change regular pre-tax contributions already made to the Plan to Roth post-tax contributions, or vice-versa.
Special Rights upon Return from Military Service
If you return to work for the company after a qualifying military leave, you can "make up" the elective deferrals that you could have made if you had not gone on military leave. Your right to "make up" contributions lasts for a specific period of time. By law, that period is three times your military leave period (but not more than five years). For example, if you had been on active duty for 12 months, you would have the right to make up any missed contributions for a period of three years following your return.
The Plan rules and federal tax limits in effect during your military leave may limit your "make up" contributions. For further information, contact Fidelity Customer Services at 800-835-5097.