Arrow Electronics 401(k) match, vesting and fees

All eligible employees who are hired or rehired are automatically enrolled in the Plan, with a contribution rate of six percent. Employees have a thirty-day window to decline or change this automatic enrollment amount. Employee contribution rates are automatically increased one percent annually up to a maximum of ten percent. Employees may decline the automatic increase at any time.

The contributions to the Plan are determined by eligible employees electing to contribute on a pre-tax or after-tax Roth basis up to the applicable percentage of eligible compensation as determined by the PIOC, subject to certain limits prescribed by the Internal Revenue Code (“Code”) and as defined in the Plan document.

Participants may borrow from their fund accounts with a minimum of $1. The maximum amount that may be borrowed cannot exceed the lesser of $50 or 50% of their vested account balance. No more than one loan per six-month period may be requested, with a maximum of one outstanding loan at the same time. Loan terms primarily range up to four and one-half years or up to ten years if the loan proceeds are used to purchase the principal residence for the participant. Loan balances transferred into the Plan from closed plans maintain their original loan terms, unless upon closure of the Plan new terms are negotiated. Loans are secured by the balance in the participants’ accounts and bear interest at a rate commensurate with the interest rates charged by persons in the business of lending money under similar circumstances. All loans outstanding as of December 31, 2024 had an interest rate of 4.25% to 9.50%. Principal and interest are paid ratably through payroll deductions. Loans are included on the statements of assets available for benefits at net realizable value.