FAQ: 2025 401(k) Changes
What is changing in the 401(k) matching structure?
Current Plan: We match 50% of employee contributions, up to $2,000 per year.
New Plan (effective 1/1/2025):
We will match 100% of your contributions up to 1% of your eligible deferrals, after which CLEAR will match 50% of your contributions up to a maximum of 6%.
This means you can receive a maximum match of 3.5% of your base salary.
What is vesting, and how does it work with the new plan?
CLEAR match dollars earned before 2025: will remain subject to the 3-year cliff vesting schedule.
CLEAR match dollars earned in 2025+: will be fully vested after 2 years of service, based on your hire date.
What compensation is eligible for the 401(k) match?
Eligible compensation includes base salary and commissions.
You may not defer bonus compensation into the plan, nor is it eligible for the CLEAR matching contribution.
What are the changes to plan fees?
While no one loves paying fees, it's important to remember that all 401(k) plans come with administrative costs to ensure your retirement savings are managed efficiently and securely. The good news is we’ve negotiated lower fees so more of your money stays in your account, working for you!
Current Fees (before 2025):
Empower recordkeeper fee: 0.44% of assets
Investment advisor fee: 0.28% of assets
New Fees (effective 1/1/2025):
Empower recordkeeper fee: $45 per participant per year
Investment advisor fee: 0.18% of assets
Will highly compensated employees be due a refund of their 401(k) contributions going forward?
New 401(k) plan in 2025 is considered a safe harbor plan, eliminating the need for refunds to highly-compensated employees.
Compliance testing required for 2024 plan year, results expected in Q1 2025.
Do I need to do anything to enroll or participate in the new plan?
No action is required if you're already enrolled. Your current deferral elections will carry over. However, you may want to review your contribution percentage to maximize the new match.
View and update your contribution at empowermyretirement.com.
What is the maximum company match I can receive?
Under the new plan, you can receive a maximum match of 3.5% of your pay if you contribute at least 6% of your eligible compensation.
Will my old match dollars still vest according to the old schedule?
Yes, any company match contributions made before January 1, 2025, will continue to vest according to the 3-year cliff vesting schedule.
Who can I contact with questions?
For additional information or personalized support:
Contact Empower at 877-456-4015, or
Submit a ticket to the CLEAR Benefits Team here.