Covington & Burling 401(k) match, vesting and fees

The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan. Automatically enrolled participants have their deferral rate set at 6% of eligible compensation and their contributions invested in a designated balanced fund until changed by the participant. Participants who are automatically enrolled in the Plan and do not elect otherwise will have their deferral rate increased by 1% on an annual basis.

Employees other than partners may make tax-deferred, post-tax (Roth) and/or voluntary taxable contributions not less than 1% and not exceeding 80% of the participant's total compensation for each payroll period during the plan year in which such election to contribute is in effect. Participants may also contribute amounts representing distributions from other qualified plans (rollover contributions). Partners may elect to contribute their net distributable income in an amount not exceeding $23,000 and $22,500 for the years ended December 31, 2024 and 2023, respectively, as tax deferred, Roth and/or voluntary taxable contributions. In addition to tax-deferred, Roth and/or voluntary taxable contributions, participants who will be at least age 50 by December 31 of the plan year and elect to make the maximum contribution, may make catch-up contributions up to $7,500 for both of the years ended December 31, 2024 and 2023.

Participants may borrow from their vested account balances up to a maximum amount equal to the lesser of $50,000 or 50% of their vested account balances. Loan terms are not to exceed five years unless the purpose of the loan is for the purchase of a primary residence for which the loan term may not exceed 15 years. The loans are secured by the vested balance in the participant's account and bear interest at the U.S. Prime Rate plus 1.0% as of the beginning of the month in which the loan originated.