Money :: 401(k)


Whether retirement is around the corner or further down the road, it’s never too early to start thinking about your financial future. XPO offers you a 401(k) plan with a generous employer contribution to help you save.

Generally, you are eligible to participate on your first day of work.


You may elect to contribute 1% to 50% of your eligible base salary, commissions and bonus up to IRS limits every year.

2023 IRS Limits on Pre-Tax or Roth Post-Tax Contributions

  • $22,500 if you are younger than age 50 in 2023
  • $30,000 if you are age 50 or older in 2023

You can make pre-tax, Roth post-tax or a combination of contributions. Your combined total contributions cannot exceed annual IRS contribution limits.

Pre-Tax Contributions

When you contribute on a pre-tax basis, you get a tax break when contributions are made, but you will have to pay taxes when you take the money out in retirement. This makes sense if you expect to be in a lower tax bracket when you retire.

Roth Post-Tax Contributions

The Roth feature means you can contribute post-tax dollars into the plan, so you won’t have to pay taxes on these contributions when you take a qualified distribution.

When you contribute to a traditional 401(k), you’re contributing on a pre-tax basis, meaning you get a tax break upfront but have to pay taxes when you take the money out in retirement. With a Roth account, you contribute post-tax dollars, and the money you contribute, including earnings if you hold the account for at least five years and don’t withdraw the money until at least age 59½, comes out tax-free in retirement.

You may want to take advantage of the Roth feature if you:

  • Are young and have decades of potential tax-free compounding of earnings.
  • Are in a lower tax bracket now than what you expect after retirement, which might mean you pay less in taxes overall.
  • Plan to leave your Roth to a spouse or heirs who can stretch out the tax-free growth.

How Much is the Company Matching Contribution?

After one year of service, XPO matches up to 4% of the contributions you make to the 401(k) Plan. XPO will match dollar-for-dollar the first 3% of pay you contribute plus $.50 on the next 2% of pay you contribute. This means if you contribute 5% of pay, XPO will contribute an additional 4% for a total of 9%. Consider contributing at least 5%, so you don’t leave any free money on the table. The more you contribute now, the more you’ll have when you retire.

What are Safe Harbor Matching Contributions?

The XPO company matching contributions qualify as “Safe Harbor Matching Contributions.” Safe Harbor Matching Contributions are 100% vested, and XPO deposits these contributions to your account each payroll period. (Employer matching contributions made prior to January 1, 2018, are subject to different plan provisions depending on your business unit, and are subject to vesting rules in effect when the matching contributions were made.)

You are always 100% vested in both your own contributions to the plan and Safe Harbor Matching Contributions made by XPO.

Other employer contributions are generally 100% vested after five or six years of service, depending on your business unit and the applicable plan provisions in effect when the contributions were made. Certain legacy employer contributions made prior to 2018 may be subject to a separate vesting schedule. Please refer to the Summary Plan Description for details.

Nine Tips About Saving in the XPO 401(k) Plan

  1. Just do it. Enroll today. It’s up to you to enroll in the 401(k) Plan. Consider an initial contribution rate of 5% of pay so you get the full company match. To get started, connect with Fidelity (scroll down for contact information).
  2. XPO makes a matching contribution of up to 4% of pay if you contribute 5%. XPO matches dollar-for-dollar on the first 3% you contribute and then $.50 on the next 2% of pay you contribute. That’s like getting a 4% raise. True, you have to contribute to get the company match, but you should save for retirement anyway, so why not take advantage of the free money from XPO?
  3. The sooner you start saving, the better. Thanks to the XPO matching contributions and compound growth, you could reach your savings goal with a lot less of your own money than if you start saving later and try to catch up. You’ll also lower your taxable income while you save.
  4. You can contribute pre-tax pay and pay taxes later. When you contribute pre-tax dollars to a 401(k) account, it reduces your taxable income on your paycheck. You get this tax break upfront but have to pay taxes when you take the money out in retirement.
  5. You can contribute post-tax pay to avoid paying taxes in the future. When you contribute post-tax dollars to a Roth 401(k) account and leave it in at least five years and don’t withdraw the money until at least age 59½, you take the money out in retirement tax free.
  6. You decide how to invest your money. Choose from target date funds that automatically rebalance to a more conservative asset mix the closer you get to retirement, or create your own portfolio from funds that match your tolerance for risk.
  7. Expect the value of your 401(k) account to change daily. It will go up and down with the financial markets. Making investment decisions in response to daily fluctuations could reduce the amount you save over the years.
  8. Your 401(k) is not a bank account. You can borrow from your account if you need to, but there are certain rules you must follow. Financial experts generally agree it’s not a good idea to withdraw money because when you do, it can’t grow through compounding. Over time, compound growth can increase your savings by thousands — even tens of thousands — of dollars.
  9. You have help. Through Fidelity, XPO gives you access to free resources to help you make smart decisions about saving and investing for retirement: 401(k) learning clips, articles, savings calculators and more are accessible by single sign-on from myXPO, as well as expert financial education. The more you know about saving for retirement, the more likely you are to reach your goal.

Learn More About the 401(k) Plan

Fidelity administers the XPO 401(k) Plan and offers numerous resources, including financial wellness resources, retirement planning support, a world-class call center and investor center branches throughout the country where you can meet face-to-face with an advisor.

To enroll, make changes, view your total rewards statement or get answers to your questions about the XPO 401(k) Plan, reach out to Fidelity using the contact information below.



Fidelity 401(k)