Sony Corporation of America 401(k) match, vesting and fees

Participants are immediately vested in all employee contributions and employer matching contributions. RSA contributions vest according to the following graduated schedule: 25% vesting after two years of vesting service, 50% vesting after three years of vesting service, 75% vesting after four years of vesting service and 100% vesting after five years of vesting service (a year of service is based on the Plan’s definition of “Credited Vesting Year”). RSIF contributions vest ratably over three Credited Vesting Years. Participants also become 100% vested as a result of reaching age 60, death, or permanent and total disability while actively employed with the Companies.

Newly eligible employees (and rehires) who do not make a timely active election to contribute to the Plan (generally within 45 days of becoming eligible) are automatically enrolled in the Plan at a rate of 6% of eligible compensation on a pre-tax basis only with annual increases of 1% each year on the anniversary of their enrollment date until the contribution level of 10% is reached. Employees may opt out of either of these automatic elections at any time. Certain groups are excluded from auto-enrollment but still have the ability to opt into the Plan at any time (subject to satisfying the Plan’s eligibility requirements). Employees who are auto-enrolled are notified of their enrollment and of the Plan’s qualified default investment alternative (“QDIA”), and thus the QDIA is deemed to be a participant-directed investment.

Eligible employees are immediately eligible to make elective pre-tax, Roth and after-tax deferrals and to receive company matching contributions under the Plan except that employees who are regularly scheduled to work fewer than 20 hours per week are not eligible to participate in the Plan until they have completed a year of service as defined by the Plan.

Participants may elect to take loans from their accumulated vested account balances subject to certain restrictions and limitations, as defined in the Plan document. Loans are withdrawn pro rata from the participant's fund balance(s). For the year ended December 31, 2024, the interest rate charged on loans ranged from 3.93% to 10.50%, which was derived from the Prime rate plus 1%. For the year ended December 31, 2023, the interest rate charged on loans ranged from 3.93% to 9.50%, which was derived from the Prime rate plus 1%. Repayment of loans is amortized monthly, bi-weekly or weekly, depending on the participant’s pay frequency, and made either in equal installments through payroll deductions for a period generally not to exceed 15 years if the loan is for the purchase of a primary residence, or five years for a general purpose loan, or in a lump sum. Employees may have one general purpose loan and one primary residence loan outstanding at one time. The maximum amount a participant can borrow is the lesser of 50% of his or her vested account balance (including any outstanding loans) minus his or her current outstanding loan balance, or $50,000 minus his or her highest outstanding loan balance(s) across all of the employer’s qualified plans during the past twelve months. Loan repayments, consisting of interest and principal, are paid ratably through payroll deductions and are invested in the participant's fund balance(s) according to his or her current investment elections. Should a participant terminate employment with the Companies and not repay his or her loan in full by the end of the calendar quarter following the calendar quarter in which payment is due, the participant's outstanding loan balance is deemed to be distributed to the participant in partial settlement of the participant's vested account balances.