Cisco Systems 401(k) match, vesting and fees

Participants are immediately vested in their voluntary contributions (e.g., salary deferrals), special employer contributions, Company matching contributions, and actual earnings thereon.

Newly hired or rehired employees are automatically enrolled in the Plan as soon as administratively feasible following the date they first meet eligibility requirements. Contributions to the Plan will not be made from bonuses and commissions unless an affirmative election is made.

Participants can contribute up to 75% of eligible compensation on a before-tax and after-tax basis including Roth contributions, subject to certain limitations respectively, for Plan years ended December 31, 2023 and 2022. The maximum contribution for the calendar year 2023, as determined by the Internal Revenue Service (“IRS”), was $22,500. Participants who are 50 years of age or older by the end of the Plan year are eligible to contribute an additional portion of their annual compensation on a before-tax basis and/or make Roth contributions (“catch-up contributions”) after they have met the maximum 401(k) deferral amount allowed under the Plan, subject to the annual IRS limit.

Under the Plan, participants who meet a minimum balance requirement ($1,000 in 2023 and 2022) may request a loan from the Plan. The agreement with the trustee provides that such loans are made by the trustee from the borrower's account balance and are collateralized by the participant's assets in the Plan. If a loan is approved, the participant will repay the loan in a series of equal, bi-weekly principal and interest payments. The minimum a participant may borrow is $500 and the maximum is the lower of 50% of the participant's account balance in the Plan, or $50,000. Repayment periods for loans initiated under the Plan are for a maximum of ten years for the purchase of a principal residence, or five years for all other loans. The loans bear a fixed interest rate in effect under the terms of the Plan's loan policy on the first day of the month during which the loan is granted. For participant loans that are related to merged plans, resulting from Company acquisitions, their terms and provisions are subject to their respective plans prior to the acquisitions. The outstanding balance of notes receivable from participants at December 31, 2023 and 2022, was $79,566,996 and $74,714,218, respectively, and the balances were secured by the respective asset accounts of the participants who originated the loans. As of December 31, 2023, interest rates on notes receivable from participants (including loan notes rolled over from other qualified plans) ranged from 4.25% to 10.00% and the notes mature at various dates through 2048.