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Your transition guide to your new 401(k) plan - FedEx - what to do with 401k at retirement


Your transition guide to your new 401(k) plan - FedEx-what to do with 401k at retirement

Your transition guide to
your new 401(k) plan
On January 1, 2022, FedEx will introduce a 401(k)
plan called the FedEx Corporation Retirement
Savings Plan II (RSP II). You will participate in this
new plan because you either:
? Were hired, rehired or transferred from a company that didn't offer a pension plan
after 2019.
? Elected to participate in the new 401(k) plan during the Retirement Choice Period.
On December 31, 2021, your account balance in the FedEx Corporation Retirement
Savings Plan (RSP) will move to the RSP II. This is true even if you were hired or rehired
after December 2019 and your employment ends prior to the transition.* Your future
contributions and employer contributions will be redirected to your new plan as well.
Please carefully review the next page of this guide for information about periods
during the transition from the RSP to the RSP II when you temporarily will be unable
to change your paycheck contributions, direct or diversify investments in your
individual accounts, obtain a loan from the plans or obtain a distribution from
the plans. Your investments, however, will be transferred in kind so your account
balance will not be out of the market during the transition.
Whether or not you are planning retirement in the near future, we encourage you
to carefully consider how these temporary restrictions may affect your retirement
planning, as well as your overall financial plan.
An important note for former employees
If you were hired or rehired after December 2019 and no longer work for FedEx, much
of the information below will not apply to you, but your balance will be transferred
to RSP II, and the temporary restrictions on your ability to initiate withdrawals and
changes to your plan investments that are detailed on the next page will apply. Also,
if you are receiving installment payments or required minimum distributions (RMDs)
in the RSP via direct deposit to your bank account, you will need to reestablish your
instructions in the RSP II. After the transition ends, be sure to log in to your account and
reestablish your bank deposit instructions. That way, you can continue to receive your
installment payments via direct deposit.
If you receive installment payments by mail, you can go online after the transition ends
in late January to set up ACH instructions so you can receive payments electronically.
*Accounts of employees transferring to an ineligible position (i.e. FedEx Ground, Inc. package handler) or to a FedEx
employer or position that does not participate in the RSP or RSP II, will not be transferred.
Great news!
As part of this transition and as an active participant in the plan, eligible employees will
receive a higher company match of up to 8 percent of eligible earnings.
What's inside
This guide provides key details about what to expect in the coming weeks and how your
current account information will be moved. You can access your account by logging in to
vanguard.com/retirementplans. As part of the transition, access to your account in your
current plan will be restricted for a short period of time to allow for the transition of account
information to your new plan.
To help make sure there's an orderly and accurate transfer of your account information from
the RSP to the RSP II, activity in your current plan will need to be temporarily restricted.
Please see the "Key dates" table for a list of restricted transactions.
Key dates
December 17, 2021, at 4 p.m., Eastern time Transition activities to RSP II begin.
Deadline to make the following changes in the RSP until
the transition ends:
? Change your investment elections for future contributions.
? Change the amount of each paycheck you contribute.
December 21, 2021, at 4 p.m., Eastern time Deadline to fully pay off an outstanding loan balance
until after the transition ends.
December 23, 2021, at 4 p.m., Eastern time Last day to submit correct and complete principal
residence loan or hardship withdrawal paperwork and
to initiate electronic bank transfer loan issuances and
loan payments. (Note: Vanguard offices will be closed
on December 24, 2021.)
December 28, 2021, at 4 p.m., Eastern time Deadline to make the following changes until the
transition ends:
? Move money between funds.
? Request non-hardship withdrawals or distributions.
? Make brokerage transactions.
? Submit a rebalancing request.
? Enroll in the Vanguard Managed Account Program.
December 31, 2021, at 4 p.m., Eastern time All assets in your account are transferred in kind to the
RSP II. Your money will not be out of the market.
Week of January 24, 2022 Transition ends.
All transactions are available through Vanguard.
If you have any questions concerning these temporary restrictions, you should contact Vanguard at
vanguard.com/retirementplans, at 1.800.523.1188 or in writing at P.O. Box 2900 Valley Forge, PA 19482-2900.
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