Geico 401(k) match, vesting and fees

Vesting - Effective January 1, 2023, the Companies’ matching contributions into the Plan are immediately vested. Unvested balances in the Plan, as of December 31, 2022, will continue to vest based on years of service at the following rates: 20 percent after two years, 40 percent after three years, 60 percent after four years, 80 percent after five years, and 100 percent after six years. Payment of Benefits - Withdrawals may be made from after-tax employee contributions made prior to January 1, 1998 (and a pro rata share of the earnings on after-tax contributions withdrawn that were made after December 31, 1986 and before January 1, 1998) and vested employer contributions made prior to January 1, 1993, subject to certain restrictions. Vested employer contributions made on or after January 1, 1993 can only be withdrawn under financial hardship conditions (for periods before September 2013) or after attainment of age 55.

Employees automatically become eligible to make a 401(k)-elective contribution to the Plan upon their date of hire. Contributions - Participants may contribute up to 50 percent of qualified earnings, subject to the maximum dollar amount permitted by the Internal Revenue Code (IRC). Furthermore, participants may contribute amounts representing certain distributions from other qualified defined benefit or defined contribution plans (rollover), subject to certain IRC limitations. Participants are enrolled in an automatic 1 percentage point increase each year in their pre-tax contributions until their contribution reaches 15 percent of their pay or the IRC limit, whichever is less, unless participants opt out. Existing under-saver participants currently electing to defer zero to five percent were automatically adjusted to six percent deferral in March of 2023 as a one-time adjustment.

Participants may allocate their contributions between tax-deferred accounts and Roth accounts.

Notes Receivable from Participants - The Plan allows participants to borrow funds from their vested accounts subject to certain restrictions. The minimum loan amount is $1,000 and the maximum is $50,000, minus the highest outstanding loan balance, if any, a participant had at any time during the one-year period ending immediately before the date of the new loan. Payroll deductions are required to repay notes receivable over five years or less except in the case of a mortgage-related note which may be repaid over a period of up to 15 years. The interest rate is fixed for the term of the note at the commercial rate of interest charged by area banks on loans which are made under similar circumstances. However, effective November 30, 2020, the interest rate is fixed for the term of the note at the prime lending interest rate plus one percent at the time of the loan.