Entergy 401(k) match, vesting and fees

Vesting: Participants are fully vested at all times in the total value of their participant account under the Entergy Savings Plan.

Automatic Enrollment and Automatic Increase: If an eligible newly hired, re-hired or newly eligible employee does not enroll in the Entergy Savings Plan and does not affirmatively opt out of participation, the participant will be automatically enrolled in the Entergy Savings Plan at a pre-tax rate of 6% within a reasonable period of time following 90 calendar days after the participant’s hire date, rehire date, or the date the participant becomes eligible. Effective April 1, 2025, the Entergy Savings Plan also includes an automatic increase provision whereby the participant's pre-tax contributions will increase by 1% each April 1st until the rate reaches 10%, unless the participants opt out of this provision. The automatic enrollment feature will not apply to an employee who is included in a collective bargaining unit covered by a collective bargaining agreement unless agreed to by the applicable bargaining representative. Participants who are automatically enrolled in the Entergy Savings Plan may elect at any time to change their percentage contribution rate or stop making contributions to the Entergy Savings Plan.

Basic and supplemental contributions may be made on a before-tax basis (before-tax deferral contributions), an after-tax basis, a Roth basis, or a combination. Contributions are subject to certain IRC limitations. The combined before-tax deferral contribution and Roth contribution dollar limit for the calendar year 2024 was $23,000 per participant. The overall annual limit for 2024 for before-tax, after-tax, Roth, and company matching contributions was the lesser of 100% of the employee’s compensation for the year or $69,000.

Loans to participants: The Entergy Savings Plan has a loan provision whereby participants who are actively employed may borrow an amount, with a minimum of $1,000, from their eligible account up to a maximum of 50% of the balance of their account or $50,000, whichever is less. The amount borrowed is deducted from the participant's eligible account and repaid with interest based on the prime rate as published in the Wall Street Journal, plus 1% in accordance with an established schedule. The loan must be repaid within 4-1/2 years, or 20 years if for the acquisition of the participant's primary residence. If a participant with an outstanding loan terminates employment, the participant may continue to make loan payments following termination. However, if the participant requests a full distribution of the vested balance in his account, he is required to repay the loan in full. Also, if the participant defaults on the loan following termination of employment, the loan balance will be offset and deducted from the participant’s account balance and will be treated as a taxable distribution to the participant.