FedEx 401(k) at a glance
| Employer match | For employees hired on or after January 1, 2020 (RSP II), FedEx puts in $2 per $1 on the first 2% you save and $1 per $1 on the next 4%, for up to 8% of pay. |
|---|---|
| Maximum match | 8% of pay |
| Contribution needed for full match | 6% of pay |
| Eligibility | Hires and rehires from January 1, 2020 are in RSP II. Pension-eligible employees who did not switch in the 2021 choice window stay in RSP I. |
| Roth 401(k) option | Yes |
| Pension | YesLegacy employees keep the FedEx pension, including the Portable Pension Account cash-balance formula. The pension is closed to anyone hired or rehired after December 31, 2019. |
| Plan provider | Vanguard |
| Who this applies to | Eligible US employees of FedEx Express, Ground, Freight, Services and other participating units |
How much is the FedEx match worth?
If you contribute 6% of your pay, FedEx adds the full match. Here is what that means at different salaries, per year, before investment growth:
| Salary | You contribute (6%) | FedEx match |
|---|---|---|
| $40,000 | $2,400 | $3,200 |
| $60,000 | $3,600 | $4,800 |
| $90,000 | $5,400 | $7,200 |
| $150,000 | $9,000 | $12,000 |
Illustration based on the plan terms above. Your actual match depends on eligible pay, timing and plan rules.
Good to know
- RSP I (pension participants) has a lower match: up to 3.5% of pay when you save 6%.
- Union-represented pilots and some units may have different terms.
Other FedEx retirement benefits
- Catch-up contributions count toward the match
- After-tax contributions (1-20%) for non-highly-compensated employees
- Retiree Health Premium Account for hires before 2018 with 20 years of service, retiring at 55+
How to make the most of your FedEx 401(k)
- Always get the full match. Contribute at least 6% of pay. It is an instant return you cannot get anywhere else.
- Check your vesting date before you change jobs, so you do not leave unvested money behind.
- Pre-tax or Roth? If you expect a higher tax rate in retirement, Roth contributions can pay off. Model it with our Roth conversion calculator.
- Watch fees and prefer low-cost index or target-date funds in the plan lineup.
- Plan the whole picture: see how your state taxes retirement income before you decide where to retire.
Frequently asked questions
Does FedEx match 401(k) contributions?
For employees hired on or after January 1, 2020 (RSP II), FedEx puts in $2 per $1 on the first 2% you save and $1 per $1 on the next 4%, for up to 8% of pay.
When can I join the FedEx 401(k)?
Hires and rehires from January 1, 2020 are in RSP II. Pension-eligible employees who did not switch in the 2021 choice window stay in RSP I.
Does FedEx offer a pension?
Legacy employees keep the FedEx pension, including the Portable Pension Account cash-balance formula. The pension is closed to anyone hired or rehired after December 31, 2019.
How much should I contribute to get the full FedEx match?
Contribute at least 6% of your pay. Anything less leaves part of the match unclaimed.
Sources (last verified 2024 plan materials)
- RSP II Overview: The FedEx Retirement Savings Plan — FedEx (2024)
- RSP I Overview: The FedEx Retirement Savings Plan — FedEx (2024)
- FedEx Retirement Benefits Quick Reference Guide — FedEx (2024)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.