Sysco 401(k) match, vesting and fees

Participants are at all times fully vested in their contributions, rollover contributions, and the appreciation and depreciation thereon. Under the safe harbor design, vesting in non-elective contributions is immediate. Vesting in the Company annual match and discretionary contributions plus earnings thereon is based on years of credited service. Participants vest 25% after two years of service, 50% after three years, 75% after four years and are 100% vested after five years of service. A participant is immediately vested upon death, retirement, or termination of employment due to total and permanent disability.

The Plan includes an automatic enrollment feature. If an eligible employee does not make an affirmative election to make a salary deferral contribution or not to participate in the Plan within 60 days of employment, the employee’s eligible compensation will be automatically reduced by a pre-tax salary deferral contribution of 3% of their annual eligible compensation. Effective January 1, 2024, entry into auto enrollment will take place as of the earliest date that is administratively feasible following the date the employee completed 60 days of employment. Prior to January 1, 2024, entry into auto enrollment would take place on the first day of the month coinciding with or next following the date the eligible employee completed 60 days of employment. The automatic contributions are increased by 1% each year on the anniversary of the automatic enrollment date until a deferral rate of 6% is reached, unless the participant elects not to participate in the increase each year. Existing participants who are contributing at a deferred rate of less than 3% are subject to an annual auto-escalation process. Participants may also elect to have their contribution percentage automatically increased by 1% to 3% each year until the participant’s contribution equals 6% of their eligible compensation.

Participants may elect to make a pre-tax and/or Roth salary deferral contributions to the Plan up to 50% of eligible compensation up to the maximum amount allowed under the appropriate sections of the IRC. Effective January 1, 2024 Roth salary deferral contributions were added to the Plan.

Plan participants may borrow a minimum of $1,000 up to a maximum of the lesser of 50% of their vested account balance in the Plan, or $50,000 reduced by the highest outstanding loan balance during the preceding one-year period. Loans are repaid in level installments through payroll deductions for periods ranging up to five years. The loans bear an interest rate at 1% over the Prime Rate and are secured by the participant’s vested account to the extent of the principal amount of the loan plus accrued interest. Participants are allowed to have only two general purpose loans outstanding at any time. Up to two additional loans may be outstanding if such loans are for college education expenses.