Gap 401(k) match, vesting and fees

Vesting—All active employees are 100 % vested in all employer contributions, participant contributions, and earnings thereon.

If a participant contributes between 1% and 9% on a pretax basis, Gap Inc. will automatically increase the deferral percentage by 1% of eligible pay each year on the anniversary of the participant’s hire date. The percentage increase will continue until the participant reaches a deferral percentage of 10%. Participants can change or stop their deferral election at any time and can opt out of the automatic increase provisions of the Plan. Automatic Enrollment—The Plan provides for automatic enrollment. Upon completion of the eligibility requirements, individuals are notified of their eligibility and opportunity to enroll in the Plan and to make contribution and investment elections. If an individual becomes eligible to participate in the Plan before the second anniversary of his/her hire date and does not enroll, he/she will be automatically enrolled in the Plan by Gap Inc. on the second anniversary of his/her hire date. If an individual becomes eligible to participate in the Plan after the second anniversary of his/her hire date and does not enroll, he/she will be automatically enrolled in the Plan by Gap Inc. on the next anniversary of his/her hire date. The default percentage for automatic enrollment will be 1% of eligible pay and will be allocated to a Plan’s qualified default investment alternative, an age-based Price Retirement Trust.

Total pretax and Roth contributions may not exceed a maximum of 30% of total eligible compensation. Total after-tax contributions may not exceed a maximum of 21% of total eligible compensation. Total pretax, Roth, and after-tax contributions cannot exceed 51% of total eligible compensation. The maximum allowable pretax and Roth 401(k) contributions qualifying for deferral for individual income tax purposes was $23,000 for the year ended December 31, 2024.

Notes Receivable from Participants—For a fee of $50, participants may apply to receive a loan of up to the lesser of 50% of their vested account balance or $50,000, minus the highest balance of any other loan outstanding in the preceding 12 months. As of January 1, 2019, participants are allowed to maintain one general purpose loan and one principal residence loan. The minimum amount participants may borrow is $1,000. Loans are repaid through payroll deductions for up to a period of five years, unless the loan is for the purchase or construction of a principal residence, in which case terms range from one to fifteen years. If an unpaid loan balance exists at the time a participant leaves the Company and withdraws from the Plan, it must be repaid by the participant or deducted from the participant’s total distribution. The fixed interest rate charged is 1% over the prime rate (as published in The Wall Street Journal) on the last business day of the month proceeding the month in which the loan is requested. As of December 31, 2024, loans had interest rates ranging from 4.25% to 10%, including loans maturing through 2039.