401(k) Plan

The 401(k) plan offers a convenient way to save for retirement either through pretax contributions or Roth after-tax contributions—and you receive free money through matching contributions from NetApp. Plus, you have access to a variety of planning tools and resources to make it easy for you to set investment goals, track your progress and save more through Fidelity, the plan administrator.

  • It's easy to get started with Fidelity Investments’ financial wellness tool. By answering a few simple questions, you'll learn what you're doing well and how you can improve. Whatever your retirement goals are, take full advantage of the NetApp 401(k) plan to help get there.
  • Use the Fidelity Planning & Guidance Center on NetBenefits® for help creating a retirement plan that’s tailored to your needs. By answering just a few questions, you’ll be able to estimate how much income you may have—or need—in retirement, receive guidance to help you get or stay on track and create a retirement plan in minutes.

401(k) plan basics

Matching contributions. NetApp wants to help you meet your savings goals and will match a portion of your contributions when you contribute to the plan!

Retirement planning tools. You have access to online tools designed to help you manage your assets as you plan for retirement.

Convenience. Your contributions are deducted regularly from your paycheck.

Tax savings now and in the future.

  • Pretax 401(k) contributions: Your pretax contributions are deducted from your pay before income taxes are taken out. This means that you can lower the amount of current income taxes you pay each period. You generally pay taxes when you take money out during retirement, at which time you may be in a lower tax bracket.
  • Roth 401(k) contributions: Your Roth contributions are not pretax. That means you get taxed on your full paycheck amount before your Roth contribution amount is invested in the 401(k) plan. However, you pay no taxes on your contributions and related earnings when you take money out for use in retirement.

Portability. You can roll over eligible savings from a previous employer into this plan. You are always 100% vested in NetApp’s matching contribution and can also take your plan vested account balance with you if you leave the company. Note: If you are a new employee and have already contributed to a 401(k) plan this year at a previous employer, you must subtract your 401(k) contributions for this year from $18,000 and may then contribute only the difference for the rest of the calendar year.

Investment options. You have the flexibility to select from investment options that range from more conservative to more aggressive, making it easy for you to develop a well-diversified investment portfolio. You can also take advantage of target date funds, which can help take the guesswork out of building and maintaining an age-based retirement portfolio.

Catch-up contributions. If you are over age 50, you can defer an additional $6,000 into your account (up to a maximum of 25% of your earnings) by making a separate election in NetBenefits. Catch-up contributions will appear as a separate line item on your pay stub.

Consider the max. The IRS maximum 401(k) contribution is $18,000 for 2017, and NetApp’s 401(k) Plan allows you to contribute a maximum of 50% of your earnings per pay period up to the IRS maximum.

100% vested. You are always 100% vested in your contributions and NetApp's matching contributions.

How to enroll

All 401(k) transactions, including initial plan enrollment, can be done online through Fidelity NetBenefits®. You can enroll after you have received your first paycheck. To enroll in the plan for the first time, complete these steps:

  1. Enroll online. Complete your enrollment by logging in to the NetBenefits website at www.401k.com. You can use your current user name and PIN if you have an account with Fidelity Investments. If you do not have an existing account, click on “Register Now.” You will be prompted to answer a few personal questions and you will be able to create your User Name and PIN. If you need assistance at any point during the enrollment process, speak with a Retirement Service Representative at Fidelity at 1 800 835 5095 (Monday to Friday, 8 a.m. to 8 p.m. your local time).
  2. Click on “Contribution Amount” to elect your percentage of deferral (between 1 and 50%).
  3. Click on “Change Investments” to elect how you want to allocate your contributions in the available funds.
  4. Complete the online beneficiary designation.
  5. Report current year 401(k) contributions made at a previous employer. If you made contributions to a 401(k) plan at a previous employer in the current tax year, please report the amount to Payroll here: 401k Previous Contribution form [PDF].

NetApp matching contributions

To help your savings go even further, NetApp will match 100% of the first 2% of eligible earnings you contribute to the Plan, then match 50% of the next 4% of eligible earnings you contribute to the Plan as regular pre-tax and Roth 401(k) salary deferral contributions. You must contribute at least 6% of your eligible earnings to receive the full 4% match. However, the maximum match is $6,000 per calendar year. Your new NetApp match will immediately vest at the time of contribution, meaning you'll own 100% of those funds.

NetApp’s matching contributions are calculated and deposited to your 401(k) plan account each pay period throughout the year. Under the plan’s matching formula, 4% of your eligible compensation is the maximum match you can receive in a given pay period, assuming you contribute at least 6% of your eligible compensation to the plan for the pay period. The match will not exceed $6,000 a year. 

However, the plan also includes a “true-up match” feature each per-pay-period, which calculates your match under the plan’s matching formula using your cumulative year-to-date contributions and eligible compensation, then makes any additional matching contribution for the pay period if necessary for you to receive the maximum permissible match based on these year-to-date amounts. The plan will make this additional “true-up match” for the pay period if, for example, you do not contribute at the full 6% early in the year and then later increase your contributions to more than 6%. In addition, the “true-up match” will be made if your contributions reach the IRS limit ($18,000 for 2017) before you receive the maximum permissible match, even though your contributions have stopped for the year.

See your Summary Plan Description [PDF] for details regarding the matching formula and “true-up match” feature, including examples.

Matching contribution examples

We've created three additional examples to illustrate the match formula. Review them to see which one resembles your financial situation, learn more about the "true-up match" and decide what works best for you.

Brian earns $90,000 and contributes 6% of earnings

  • Brian’s eligible earnings are $90,000 and he contributes 6% of his eligible earnings to the 401(k) plan.
  • His annual pre-tax and/or Roth 401(k) salary deferrals total $5,400.
  • NetApp’s matching contributions equal $3,600 and are deposited to his 401(k) account each pay period throughout the year, as calculated below:

401(k) salary deferral and NetApp matching contributions

Brian’s eligible earnings per pay period

$90,000 / 26 pay periods = $3,461.54

Brian’s 401(k) salary deferral per pay period

$3,461.54 x .06 = $207.69
NetApp’s 401(k) matching contribution per pay period

NetApp matches 100% of the first 2% of eligible earnings that Brian contributes:

$3,461.54 x.02 = $69.23

plus

NetApp matches 50% of the next 4% of eligible earnings that Brian contributes:

$3,461.54 x .02 = $69.23

Total NetApp matching contribution per pay period = $138.46

Mary earns $150,000 and contributes IRS maximum

  • Mary’s eligible earnings are $150,000 and she is contributing the 2017 IRS maximum limit of $18,000.
  • Because Mary wants to contribute the full $18,000 annual maximum early in the year, she increases her 401(k) salary deferral to 40% from January through April only.
  • NetApp’s annual matching contribution equals $6,000.
  • While Mary’s contributions end in April when she reaches the $18,000 annual limit, the NetApp matching contribution is calculated each pay period and deposited to her 401(k) account throughout the year. Four percent is the maximum match she receives in a given pay period, as calculated below:

401(k) salary deferral and NetApp matching contributions

Mary’s eligible earnings per pay period

$150,000 / 26 pay periods = $5,769.23

Mary’s 401(k) salary deferral per pay period—from January through April only

$5,769.23 x .40 = $2,307.69



Mary’s contributions are capped by Payroll at $18,000 so she does not exceed the 2017 IRS maximum.

NetApp’s 401(k) matching contribution per pay period—from January through December

NetApp matches 100% of the first 2% of eligible earnings that Mary contributes:

$5,769.23 x.02 = $115.38

plus

NetApp matches 50% of the next 4% of eligible earnings that Mary contributes:

$5,769.23 x .02 = $115.38

Total NetApp matching contribution per pay period = $230.76

Karen earns $225,000 and contributes IRS maximum

  • Karen’s eligible earnings are $225,000 and she is contributing the 2017 IRS maximum limit of $18,000.
  • Karen wants to contribute the full $18,000 annual maximum by the end of the first quarter, so she increases her 401(k) salary deferral to 35% from January through March only.
  • While Karen’s contributions end in March, the NetApp matching contribution is calculated each pay period and deposited to her 401(k) account from January through September, when she reaches the maximum annual match of $6,000. Four percent is the maximum match she receives in a given pay period, as calculated below:

401(k) salary deferral and NetApp matching contributions

Karen’s eligible earnings per pay period

$225,000 / 26 pay periods = $8,653.84

Karen’s 401(k) salary deferral per pay period—from January through March only

$8,653.84 x .35 = $3,028.84

Karen’s contributions are capped by Payroll at $18,000 so she does not exceed the 2017 IRS maximum.

NetApp’s 401(k) matching contribution per pay period—from January through September

NetApp matches 100% of the first 2% of eligible earnings that Karen contributes:
$8,653.84 x.02 = $173.07

plus

NetApp matches 50% of the next 4% of eligible earnings that Karen contributes:

$8,653.84 x .02 = $173.07

Total NetApp matching contribution per pay period = $346.14
The NetApp matching contributions are capped by Payroll in September at the $6,000 maximum.

Please note that all employees’ personal financial situations are unique and their outcomes in the 401(k) plan will depend on multiple factors, such as salary, contributions, IRS limits and plan provisions.

*The maximum cap on the match is $6,000 in a calendar year.