When can I enroll in the DXC 401(k)?
You can enroll at any time. There is no waiting period.
How do I enroll in the Plan?
Enroll online at any time at Fidelity’s NetBenefits website or by calling the DXC Wealth and Retirement Center through Fidelity.
What if I don’t enroll in the DXC 401(k)?
We encourage you to take an active role in the plan and choose a contribution rate and investment options that are appropriate for you.
If you have not enrolled in the DXC 401(k) within 60 days from your eligibility, you will be automatically enrolled at a contribution rate of 3% of your pre-tax eligible earnings. Based on your date of birth and assuming a retirement age of 65, you will be invested in the Target Series Retirement Fund, with a corresponding target retirement date. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.
Your contribution rate will automatically increase by 1% each year, up to a maximum rate of 10%.
You may change your contribution rate at any time at Fidelity’s NetBenefits website or by calling the DXC Wealth and Retirement Center through Fidelity.
What is the Roth contribution option?
A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement, as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five tax years after your first Roth contribution and after you have reached age 59 ½, become disabled or die.
Find more information at Fidelity’s NetBenefits website (in the Learn section).
How much can I contribute?
Through automatic payroll deduction, you may contribute between 0% and 50% of your eligible pay on a pre-tax and/or Roth basis. Highly compensated employees may be limited to lower percentages. Eligible pay is also limited based on IRS guidelines. Sign up any time at Fidelity’s NetBenefits website or by calling the DXC Wealth and Retirement Center through Fidelity.
What is the IRS contribution limit?
The IRS contribution limit for your pre-tax and/or Roth contributions in 2024 is $23,000. If you are age 50 or will reach 50 during the plan year and are making the maximum contributions permitted by law and the 401(k), you may make additional “catch-up” contributions each pay period. The maximum annual limit for catch-up contributions in 2024 is $7,500. The overall IRS contribution limit, including catch-up contributions, in 2024 is $30,500.
When is my enrollment effective?
Your enrollment becomes effective once you elect a deferral percentage, which initiates deduction of your contributions from your pay. These salary deductions will generally begin with your next pay period after we receive your enrollment information, or as soon as administratively possible.
Does DXC contribute to my account?
DXC helps your retirement savings grow by matching your contributions. If you are eligible for the standard company match, DXC will match 50% of each dollar you contribute on the first 6% of pay that you defer to your plan.
These matching contributions are pre-tax contributions and will be deposited to your account annually in January following the end of the year in which it was accrued. To be eligible, participants must be active employees of DXC on December 31, involuntary termination of employment in the month of December, retirement at age 55 or older, or death during the calendar year. Any pre-tax contributions (both matched and unmatched) and associated earnings on those contributions would be subject to taxation upon withdrawal.
How do I designate my beneficiary?
If you have not already selected your beneficiaries or if you experience a life-changing event such as a marriage, divorce, birth of a child, or a death in the family, it’s time to consider your beneficiary designations. Fidelity’s Online Beneficiaries Service offers a straightforward, convenient process that takes just minutes. To make your elections, go to Fidelity’s NetBenefits website, click on the Profile link, select Beneficiaries and follow the online instructions.
What are my investment options?
To help you meet your investment goals, the DXC 401(k) offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon and risk tolerance. The many investment options available through the DXC 401(k) include conservative, moderately conservative, and aggressive funds. A complete description of the Plan’s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available at Fidelity’s NetBenefits website.
Is there a self-directed brokerage option in my plan?
For those desiring the most investment flexibility and choice, the Plan offers Fidelity BrokerageLink®, a self-directed brokerage account, which provides you with the opportunity to select from thousands of mutual funds beyond those offered in the standard plan line up. More information about BrokerageLink, including an overview, the commission schedule, and a fact sheet that outlines the Plan-level restrictions and other settings, is available at Fidelity’s NetBenefits website (log in, click on Quick Links and then BrokerageLink).
What if I don’t make an investment election?
We encourage you to take an active role in the DXC 401(k) and choose investment options that best suit your goals, time horizon and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the Target Series Retirement Fund with the target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65.
If no date of birth or an invalid date of birth is on file at Fidelity, your contributions may be invested in the Target Series Retirement Fund. More information about the Target Series Retirement Fund options can be found online at Fidelity’s NetBenefits website.
Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.
What “catch-up” contribution can I make?
If you have reached age 50 or will reach 50 during the calendar year January 1 – December 31 and are making the maximum plan or IRS pre-tax and/or Roth contribution, you may make an additional “catch-up” contribution each pay period. The maximum annual catch-up contribution in 2024 is $7,500.
When am I vested?
You are always 100% vested in your own contributions to the DXC 401(k). Most employees become 100% vested in company matching contributions after one year of service with DXC.
Can I take a loan from my account?
Although your plan account is intended for the future, you may borrow from your account for any reason. Learn more about and/or request a loan at Fidelity’s NetBenefits website or by calling the DXC Wealth and Retirement Center through Fidelity.
Can I make withdrawals?
Withdrawals from the DXC 401(k) are generally permitted when you terminate your employment, retire, reach age 59 ½ or experience severe financial hardship as defined by your plan. You are allowed one age 59 ½ withdrawal within any 12-month period.
After your employment ends, you can elect to withdraw your account as a series of installment payments.
Learn more about and/or request a withdrawal at Fidelity’s NetBenefits website or by calling the DXC Wealth and Retirement Center through Fidelity.
Can I move money from another retirement plan into my account in DXC 401(k)?
You are permitted to roll over eligible pre-tax contributions from another 401(k), 403(b) or governmental 457(b) retirement plan account or eligible pre-tax contributions from conduit or non-conduit individual retirement accounts (IRAs). Rollovers from Roth sources are allowed. Learn more at Fidelity’s NetBenefits website or by calling the DXC Wealth and Retirement Center through Fidelity.
Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.
Where can I find information about exchanges and other plan features?
Learn about loans, exchanges, and more at Fidelity’s NetBenefits website. In particular, you can access loan modeling tools that illustrate the potential impact of a loan on the long-term growth of your account. You will also find a withdrawal modeling tool, which shows the amount of federal income taxes and early withdrawal penalties you might pay, along with the amount of earnings you could potentially lose by taking a withdrawal. You can request additional information by calling the DXC Wealth and Retirement Center through Fidelity.