IBM 401(k) at a glance
| Employer match | IBM no longer matches 401(k) contributions. Since Jan 1, 2024 it puts 5% of eligible pay into a Retirement Benefit Account instead. |
|---|---|
| Company contribution (no match needed) | IBM credits 5% of eligible pay to the Retirement Benefit Account (RBA), a cash balance account inside the IBM pension plan, after one year of service. The RBA earns 6% interest in 2024-2026, then the 10-year Treasury rate with a 3% floor through 2033. |
| Vesting | ImmediateThe RBA is described as immediately vested and portable once credits start (after 1 year of service). |
| Eligibility | RBA credits start after one year of service. |
| Automatic enrollment | New hires are auto-enrolled in the 401(k) at 5% of salary and performance pay after about 30 days. |
| Roth 401(k) option | Yes |
| Pension | YesThe RBA is a cash balance benefit inside IBM's Personal Pension Plan. It replaced the 5% match and 1% automatic 401(k) contribution in 2024. |
| Plan provider | Fidelity |
| Who this applies to | US regular employees |
Good to know
- IBM gave a one-time salary adjustment (reported as 1%) when the match ended on Jan 1, 2024.
Other IBM retirement benefits
- Employees can still make their own 401(k) contributions
- Large fund menu plus self-directed window
- RBA can be taken as a lifetime annuity
How to make the most of your IBM 401(k)
- Always get the full match. Contribute enough to earn every matching dollar. 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 IBM match 401(k) contributions?
IBM no longer matches 401(k) contributions. Since Jan 1, 2024 it puts 5% of eligible pay into a Retirement Benefit Account instead. IBM credits 5% of eligible pay to the Retirement Benefit Account (RBA), a cash balance account inside the IBM pension plan, after one year of service. The RBA earns 6% interest in 2024-2026, then the 10-year Treasury rate with a 3% floor through 2033.
When does the IBM 401(k) match vest?
The RBA is described as immediately vested and portable once credits start (after 1 year of service).
When can I join the IBM 401(k)?
RBA credits start after one year of service.
Does IBM offer a pension?
The RBA is a cash balance benefit inside IBM's Personal Pension Plan. It replaced the 5% match and 1% automatic 401(k) contribution in 2024.
Sources (last verified 2025)
- IBM 401(k) Plus Plan Form 11-K (FY2025) — IBM / SEC (2026-06-26)
- IBM Shifts 401(k) Match to 5% Retirement Benefit Account — 401(k) Specialist (2023-11)
- IBM saves billions by reopening its pension plan — Milliman
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.