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401(k) & Roth Savings Plan

Invest some of what you earn today for what you plan to accomplish tomorrow.

Ambarella offers you a 401(k) Plan through Fidelity to help you save for your retirement. One of the ways to plan for retirement is to participate in the 401(k) Plan. The sooner you begin saving for retirement, the more supplemental income you will receive when it is time for you to retire.

 

Also, because the money can be deducted from your paycheck on a pre-tax basis, you will also benefit from tax advantages. You may also choose to contribute to the 401(k) Plan on a Roth post-tax basis.

 

The IRS annual limit for 2024 is $23,000. The catch-up contribution limit for employees aged 50 and over is $7,500. Ambarella also offers the “Mega Backdoor Roth” feature in our 401(k) Plan!

 

Take a look and see what a difference enrolling in your workplace savings plan could make in helping you achieve your goals.

  • Tax Savings – Once you make an election to defer some of your salary into the plan, your pre-tax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period. It could mean more money in your take-home pay versus saving money in a taxable account. Also, you pay no taxes on any earnings until you withdraw them from your account, generally at retirement, enabling you to keep more of your money working for you now. If you choose to save on a Roth, post-tax basis, you will receive a tax benefit today, but you will benefit from tax free withdrawals in retirement.

  • Convenience – Your contributions are automatically deducted regularly from your paycheck.

  • Portability – You can roll over eligible savings from a previous employer into this Plan. You can also take your plan vested account balance with you if you leave the company. See the Frequently Asked Questions section for additional details.

  • Investment Flexibility – You have the flexibility to select from investment options that range from more conservative to more aggressive.

  • Additional After-Tax with In-Plan Roth Conversions – Ambarella allows participants to save additional after-tax dollars above the regular IRS limit into the Plan. Once contributed, these additional after-tax dollars can be converted into Roth so you can increase the tax-free dollars available to you in retirement. If you would like to save more than the annual IRS limit into your 401(k), this option may be right for you.

Ambarella 401K Company Match

Effective March 1, 2023, the AMBARELLA ("AMBA") 401(k) Plan (the "Plan") has updated the offering of the company match feature to your account. The AMBA Plan may give a discretionary matching contribution for any eligible compensation contributed into the Plan. The amount would be equal to a percentage determined by the company for the annual contribution period. 
 

Important Matching Terms and Plan Information

  • Initial Eligibility: 1st day of month after hire date

  • 100% up to 4% of employee's eligible compensation; capped at $3,000 per year

  • Immediate vesting

  • Traditional 401k and Roth 401k contributions are eligible for matching 

  • Catch-up contributions will not be matched

  • Match will be made per pay period

  • All contributing participants are automatically eligible 

  • Participants may adjust their contributions each pay period, with changes taking effect in the next pay period following the request

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Funding

Tax Deferral Benefits

Why?

How do these plans compare?

401(k) Savings Plan

Funded with pre-tax dollars

You defer paying taxes; your balance grows tax-deferred

  • You think you’ll be in a lower tax bracket when you retire

  • You’re OK not knowing exactly what you’ll owe when you retire

You pay taxes up front, but your contributions grow tax-free

Funded with after-tax dollars

You pay taxes up front, but your contributions grow tax-free

Roth Contributions

  • You think you’ll be in a higher tax bracket when you retire

  • You want the certainty of knowing exactly how much you’ll have in retirement

401(k) Plan Contact & Resources

You may enroll or manage your account online through Fidelity NetBenefits = Click Here  or by calling Fidelity at 800-835-5097

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