Dreams do come true! If you plan wisely. Whether you're saving for the kids' college education, a special vacation or early retirement, IBM savings and investment plans help leverage your savings dollars. As of January 1, 2005, newly hired employees are eligible for the programs described below.
IBM Savings Plan -- 401(k) Pension Program
Through the IBM Savings Plan, IBM offers a leading-edge 401(k) pension plan. Employees can contribute up to 80 percent of eligible compensation each pay period on a before-tax basis, and up to 10 percent on an after-tax basis, up to amounts permitted by tax laws. For eligible employees, IBM offers a dollar-for-dollar match, up to the first 6 percent of pay you contribute to the plan. Employees are eligible for this match after one year, and, once eligible, are fully vested. (Employees are always fully vested in their own contributions.)
The plan provides state-of-the art investment flexibility, with over 23 investment funds, and income protection features such as disability protection and an annuity rollover option at retirement.
IBM Employees Stock Purchase Plan
IBM's Employees Stock Purchase Plan (ESPP) offers eligible employees the opportunity to invest in IBM stock at a 5% discount off the market price on the date of purchase each pay period. Participation is voluntary. Employees may designate between 1% and 10% of their pay to purchase IBM stock through automatic payroll deduction, up to a maximum of $25,000 worth of shares in a calendar year. Eligible employees may join the ESPP at any time during the offering period, as long as they are actively employed and on the IBM payroll on the first day of the offering period. Participants may also increase or decrease their ESPP contributions, add or delete a joint owner, or withdraw from the plan at any time.
| 
