UPS 401(k) at a glance
| Employer match | For non-union employees, UPS matches 50% of the first 6% of pay you contribute (max 3% of pay). |
|---|---|
| Maximum match | 3% of pay |
| Contribution needed for full match | 6% of pay |
| Company contribution (no match needed) | Non-union employees also get a yearly UPS Retirement Contribution of 5% to 8% of eligible pay based on years of service. Hires from Jan 1, 2025 get 3% regardless of service. |
| Vesting | 3 years to fully vestThe Retirement Contribution vests after 3 years of service. The match is immediate for earlier hires; for hires after Dec 31, 2024 it vests after 3 years (or age 62). |
| Eligibility | Eligible non-union employees can join immediately on hire. You must be employed on the last day of the quarter for the match and on Dec 31 for the Retirement Contribution. |
| Automatic enrollment | Since Jan 1, 2025, new hires are auto-enrolled within 90 days at 3%, rising 1% a year up to 15% (it was 6% before 2025). |
| Roth 401(k) option | Yes |
| Pension | YesThe UPS Retirement Plan closed to new non-union hires on July 1, 2016 and stopped non-union accruals on Jan 1, 2023. Teamsters-represented workers remain in union pension plans (UPS/IBT Full-Time Employee Pension Plan and multiemployer funds). |
| Stock purchase plan | UPS has an employee stock purchase plan at a discount (per 10-K). |
| Plan provider | Voya |
| Who this applies to | US non-union employees (UPS 401(k) Savings Plan) |
How much is the UPS match worth?
If you contribute 6% of your pay, UPS adds the full match. Here is what that means at different salaries, per year, before investment growth:
| Salary | You contribute (6%) | UPS match | Company contribution |
|---|---|---|---|
| $40,000 | $2,400 | $1,200 | $2,000 |
| $60,000 | $3,600 | $1,800 | $3,000 |
| $90,000 | $5,400 | $2,700 | $4,500 |
| $150,000 | $9,000 | $4,500 | $7,500 |
Illustration based on the plan terms above. Your actual match depends on eligible pay, timing and plan rules.
Good to know
- Union (Teamsters) employees are not in this plan; their retirement benefits are set by collective bargaining and are mainly pensions.
- The 5%-8% range for current hires applies since Jan 1, 2023 (was 3%-8% before).
Other UPS retirement benefits
- After-tax contributions (if pay under $150,000)
- Transition payments for some pre-2008 hires
How to make the most of your UPS 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 UPS match 401(k) contributions?
For non-union employees, UPS matches 50% of the first 6% of pay you contribute (max 3% of pay). Non-union employees also get a yearly UPS Retirement Contribution of 5% to 8% of eligible pay based on years of service. Hires from Jan 1, 2025 get 3% regardless of service.
When does the UPS 401(k) match vest?
The Retirement Contribution vests after 3 years of service. The match is immediate for earlier hires; for hires after Dec 31, 2024 it vests after 3 years (or age 62).
When can I join the UPS 401(k)?
Eligible non-union employees can join immediately on hire. You must be employed on the last day of the quarter for the match and on Dec 31 for the Retirement Contribution.
Does UPS offer a pension?
The UPS Retirement Plan closed to new non-union hires on July 1, 2016 and stopped non-union accruals on Jan 1, 2023. Teamsters-represented workers remain in union pension plans (UPS/IBT Full-Time Employee Pension Plan and multiemployer funds).
How much should I contribute to get the full UPS match?
Contribute at least 6% of your pay. Anything less leaves part of the match unclaimed.
Sources (last verified 2025)
- UPS 401(k) Savings Plan Form 11-K (FY2025) — UPS / SEC (2026-06-18)
- UPS Form 10-K (FY2025) — UPS / SEC (2026-02)
- UPS 401(k) Savings Plan Summary Plan Description — UPS / Voya
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.