Supplemental 401(k) Plan

The MIT Supplemental 401(k) Plan (referred to as the 401(k) Plan) helps eligible employees save and invest for retirement while receiving certain tax advantages. MIT will match up to 5% of your pay in contributions to the 401(k) Plan. You choose how your contributions — and MIT's matching contributions — are invested. Administrative and recordkeeping services for the 401(k) Plan are provided by Fidelity Investments.

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Eligibility

You are generally eligible for the 401(k) Plan if you have been appointed and are currently working at MIT for at least three consecutive months and you are scheduled to continuously work at least 50% of the normal full-time work schedule — or you will have 1,000 hours or more of paid service in a calendar year and you are paid by MIT. Learn more about eligibility.

Next steps

  1. Confirm your eligibility.
  2. Review Plan benefits below and read the Plan Enrollment Guide (PDF).
  3. Enroll in the Plan.

Details

Who is eligible for the 401(k) Plan

  • you have been appointed — and are presently employed — to work at MIT for at least three consecutive months and
  • you are paid by MIT and
    • you are scheduled to work continuously at least 50% of a normal full-time work schedule or
    • you have 1,000 hours or more of paid service at MIT in a calendar year

Who is not eligible

  • visitor
  • contractor
  • fellow
  • affiliate
  • teaching or research assistant
  • honorary lecturer
  • summer intern
  • employee/faculty on an unpaid leave of absence
  • post-doctoral trainee
  • paid by MITemps
  • student in a work-study program
  • family member who is not employed by MIT
  • member of the armed services assigned to MIT
Members of collective bargaining units

All the Plan provisions are subject to the terms of your collective bargaining agreement.

Benefits of the MIT 401(k) Plan

When you enroll in and contribute to your 401(k) account, you are 100% vested. You fully own your contributions, MIT's matching contributions, and all interest earned on the investments you choose through the Plan.

In addition, you receive the following tax benefits when you contribute to your MIT Supplemental 401(k) account:

  • Your contributions are not subject to federal or Massachusetts state income taxes until you withdraw money from your 401(k) account.
  • Any ongoing interest you accrue through your 401(k) investments is not subject to federal or state income taxes until you withdraw money from your 401(k) account.

Contributing to your MIT 401(k) account

You contribute to your 401(k) account through deductions from your MIT pay. Your contributions are sent to Fidelity Investments at the end of each pay period. You may contribute as little as 1% and as much as 95% of your salary (within federally prescribed limits) after amounts for Social Security and Medicare taxes and health and dental insurance have been subtracted. You may start, stop, or change your deferral or investment elections at any time.   

Federal law limits the amount of your pay each year that may be recognized for determining your allowable contribution. The limit is $260,000 in 2014. MIT considers only the first $260,000 of pay for calculating your allowable contributions. This means that if your annual compensation exceeds $260,000, MIT Payroll will take 401(k) deductions from your pay until your pay for the year reaches $260,000, or one of the other 401(k) program limits has been reached (see Contribution Limits below).

Contribution limits

  • Federal law sets limits each year on how much you are eligible to contribute to a 401(k) account. Contributions you have made to other employers' retirement plans that count toward the annual maximum limits set by federal law will reduce the amount you may contribute to your MIT Supplemental 401(k) account.
  •  In 2014, participants under age 50 are permitted to contribute up to $17,500 annually and participants age 50 and over are permitted to contribute up to $23,000 annually.
Maximum Combined Employee Contribution per Calendar Year to the MIT 401(k) Plan
Calendar Year If Under Age 50
in Calendar Year
If At Least Age 50
in Calendar Year
2013 $17,500 $23,000
2014 $17,500 $23,000

What MIT contributes to your 401(k) Plan

  • MIT matches your 401(k) deferral contributions dollar-for-dollar up to the first 5% of your MIT pay (subject to the annual limits specified by federal law).
  • MIT only contributes a match during months in which you have made a contribution.

When contributions are invested in your 401(k) account

  • Your 401(k) deferral contributions are sent to Fidelity following each pay period.
  • MIT's matching contributions are sent to Fidelity Investments at the end of each month.
  • Both your deferral contributions and the MIT matching contributions are invested according to your elections.

401(k) Tax Saver's Credit

You may be eligible for a special tax credit offered through the IRS if you qualify as a low- or moderate-income worker and participate in MIT's 401(k) Plan. MIT is not the sponsor of this credit, and all questions should be directed to your tax preparer or the IRS.

Need Help?

You can schedule a one-on-one session with an MIT Retirement Counselor and/or MIT's dedicated Fidelity onsite representative. Learn More.

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