Athenahealth 401(k) match, vesting and fees

Participants are immediately vested in their voluntary contributions, plus actual earnings thereon. Company matching and discretionary contributions and earnings are 25% vested after one year, 50% vested after two years, 75% vested after three years and fully vested subsequent to four years of vesting service. A participant will be fully vested upon attainment of age 591⁄2, death, or total and permanent disability.

All newly eligible employees are automatically enrolled at 6% unless they affirmatively elect to opt out.

The Plan also offers after-tax contributions over and above the limit for tax-deferred or Roth contributions as well as in-plan Roth conversion of after-tax and pre-tax contributions to a Roth account.

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum amount equal to the lesser of $50,000 or one-half of their vested account balances. The loans are secured by the balances in the participants’ accounts and bear interest rates commensurate with local prevailing rates as determined by the Plan Administrator. Interest rates range between 4.25% and 9.50% and have maturity dates through 2034 as of December 31, 2024. Participants may only apply for one loan each plan year and may only have one loan outstanding at any given time. Loans must be repaid in payment terms described below over a five-year period or up to ten years for the purchase of a primary residence. In limited circumstances, loans with extended terms are included in the loan portfolio balance, which were added as part of plan acquisitions in previous years. Principal and interest are paid bi-weekly through payroll deductions. The Plan permits monthly remittances of loans due after termination of employment.