Save money in the most powerful retirement savings tool available and take advantage of the DXC company matching contribution.
The DXC Technology Matched Asset Plan (DXC 401(k) plan), helps you save and invest for your future well-being. You can contribute a percentage of your eligible compensation to the plan, pre-tax or Roth (after-tax), up to IRS and plan limits, and you can choose how to invest your savings to meet your retirement savings goals. DXC will match a portion of your contribution to help your savings grow even more.
Our DXC 401(k) service provider is Fidelity.
If you do not actively make a DXC deferral election on the Fidelity website within 60 days of your eligibility, you will be automatically enrolled in the DXC 401(k). If you do not wish to participate or be automatically enrolled in the DXC, you must elect a zero-deferral percentage through Fidelity.
You can change your elections to the DXC 401(k) at any time.
Eligibility
U.S. employees — full-time, part-time, temporary and casual — are eligible for the DXC 401(k) plan.
Your Contributions
The Plan is a “qualified retirement plan” under the U.S. Internal Revenue Code (“U.S. Tax Code”), which allows you to save on a pre-tax basis. Employees who are located in Puerto Rico are also eligible to participate in, and may contribute to, the Plan, subject to the tax rules of the Puerto Rico Internal Revenue Code (“Puerto Rico Tax Code”). Thus, the Plan is intended to be a “dual-qualified” plan, meaning it is qualified both under the U.S. Tax Code and the Puerto Rico Tax Code.
Each year, the U.S. Tax Code sets a limit on the annual amount of pre-tax and Roth after-tax contributions you may make under the Plan and other similar retirement plans. The Puerto Rico Tax Code sets a similar limit on the annual amount of pre-tax contributions you may make to the Plan and similar retirement plans, which limit is different than under the U.S. Tax Code. (Please note, Puerto Rico participants may not participate in the Plan’s Roth after-tax feature.) These annual limits, which may be adjusted each year, apply to your pre-tax and Roth after-tax contributions on a combined basis.
For U.S. Employees – You may contribute up to 50% (in increments of 1%) of your eligible pay on a pre-tax and/or Roth after-tax basis, up to the U.S. Tax Code limit ($23,000 for 2024, $23,500 for 2025). If you are considered “highly compensated” in accordance with the U.S. Tax Code, your contributions will likely be limited to 16%. This percentage is announced and communicated to affected participants each year. If you are age 50 or older at any time during the plan year, you may make additional catch-up contributions.
For Puerto Rico Employees – You may contribute up to 50% (in increments of 1%) of your eligible pay on a pre-tax (but not Roth after-tax) basis, up to the Puerto Rico Tax Code limit. For 2024, the Puerto Rico Tax Code limit is $20,000. (Although the U.S. Tax Code limit is $23,000, amounts contributed over $20,000 will be deemed taxable for Puerto Rico Tax Code purposes.) If you are considered “highly compensated” in accordance with the Puerto Rico Tax Code, your contributions will likely be limited to 16%. This percentage is announced and communicated to affected participants each year. If you are age 50 or older at any time during the plan year, you may make an additional catch-up contribution (up to $1,500 for 2024).
DXC Matching Contribution
DXC matches 50% of the first 6% of the eligible pay you contribute to the 401(k) during the plan year. You generally must be an active employee on December 31 to receive the matching contribution, which is provided in January based on your previous year’s contributions.
Vesting
You are always 100% vested in your own contributions to your 401(k) account, as well as any earnings on them. Most employees become 100% vested in company matching contributions after one year of service with DXC.
Investment Options
You can choose to invest your contributions and the DXC matching contribution in a variety of investment options or you can choose a self-directed brokerage account. If you don’t make an investment election, your 401(k) money will be invested in a Target Retirement Series Fund, based on the estimated year that you might retire, which includes a mix of investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond.
Loans and Withdrawals
Although your 401(k) account is intended for the future, you may borrow from your account for any reason if you are actively employed. You can also take a hardship withdrawal in certain instances.