DoorDash 401(k) match, vesting and fees

Vesting – Participants are immediately vested in their voluntary deferral contributions, including rollovers from other qualified plans. Effective March 21, 2023, participants are immediately vested in discretionary matching contributions. Effective March 21, 2023, discretionary nonelective contributions vest based upon completed years of service over a four year period at 33% per year from year two through four. Prior to March 21, 2023, discretionary matching contributions and discretionary nonelective contributions vested based upon completed years of service over a four year period at 33% per year from year two through four.

Once an employee satisfies the eligibility requirements and if he or she does not make a deferral election within a reasonable period of time after he or she is hired, rehired or reclassified, or affirmatively opts out, the employee’s eligible compensation automatically will be reduced by 4% and that amount shall be deemed the employee’s deferral election. In addition, each eligible employee whose deferral election is below 10% as of January 2nd of any year will automatically have his or her deferral election increased by 1% unless the employee elects otherwise for that year or creates his or her own deferral election increase schedule.

Participant Contributions – Participants in the Plan may elect to contribute, on a pretax basis or post-tax basis (“ROTH”), either a percentage or set dollar amount of annual eligible compensation, as defined by the Plan agreement.

Notes Receivable from Participants – Eligible participants may borrow from their vested account balance and are permitted a maximum of one loan. The maximum loan amount is equal to the lesser of $50,000 or 50% of their vested account balance. The term of the loan is not to exceed five years, except for loans used to finance the purchase of a primary residence. Interest rates remain fixed for the life of the loan and are based on the prime rate plus 1 percent at the date of the loan. Principal and interest are paid ratably through payroll deductions. A terminated participant with an outstanding loan balance may continue to repay the principal and interest in accordance with the loan document.