Learn how the Costco 401(k) plan works, including employee eligibility requirements, employer match, vesting schedule, and types of withdrawals.
Costco Wholesale Corporation is an American retail company that offers quality brand-name merchandise at substantially low prices. Founded in 1983, this multinational corporation is one of the major retailers, with more than 580 stores in the United States and more than 830 stores worldwide, as of May 2023. The retailer offers comprehensive benefits to its employees, including a company-sponsored 401(k) plan.
You become eligible to participate in the Costco 401(k) plan once you reach age 18 or older, and have completed at least 90 days of service in the last 12 consecutive months. When you begin making salary deferral contributions, you may elect to contribute up to 50% of your compensation per pay period, up to the annual IRS contribution limit. You can also receive an employer match of up to 50% of your contributions, or $500, whichever is lesser.
Costco 401k provider
The Costco 401(k) retirement plan is with T. Rowe Price, which is one of the leading providers of retirement plans with $1.34 trillion in assets under management as of June 2023. T. Rowe Price holds all 401(k) assets on behalf of Costco and performs various duties including managing benefits payments and investment plan accounts. If you have questions concerning your 401(k) benefits, you can speak to a T. Rowe Price plan representative at 1-800-922-9945.
Costco 401k login
To log in to your Costco 401(k) plan, visit the T. Rowe Price website. You will be required to enter your username and password to access your account. If you have forgotten your username or password, you will be able to retrieve these credentials by providing your personal information i.e. Social Security Number (SSN) and Date of Birth.
Costco 401k match
If you contribute to a Costco 401(k) plan, you may be eligible for a 401(k) match of up to 50% of your first $1,000 in 401(k) contributions up to a maximum of $500 per year. Costco makes the match once per year, and the percentage rises as an employee puts in more years of service. In addition to the employer contribution, Costco makes a discretionary contribution and a profit-sharing contribution if you meet the eligibility requirements.
Costco 401k customer service
If you have questions concerning your 401(k) plan, you can contact a T. Rowe Price customer care representative at 1-800-922-9945 between Monday to Friday from 7.00 AM to 10.00 PM EST. The automated voice response system is available 24/7. If you have unanswered questions about your 401(k) benefits, you can contact the Costco Benefits Department at 1-800-284-4882.
Costco 401k loan
Eligible Costco 401(k) plan participants are eligible to borrow up to 45% of their vested 401(k) balance, or $50,000, reduced by the highest outstanding balance in the last 12 months, whichever is less. Generally, the loan amount cannot exceed 50% of your vested account balance when it is made. The minimum 401(k) loan amount you can borrow is $1,000.
You can borrow two types of 401(k) loans from Costco 401(k) i.e. standard loans and principal residence loans. A standard loan can be borrowed for any purpose, and no documentation is required, while a principal residence loan is taken to buy a home that will be used as your principal residence. When borrowing a principal residence loan, you will be required to provide documentation related to the home you are buying. You can only have one outstanding loan at a time.
If you want to apply for a Costco 401(k) loan, log in to your 401(k) account on the T. Rowe Price website. You can also contact T. Rowe Price customer service at 1-800-922-9945.
Costco 401k after termination
If you have a 401(k) account with Costco at T. Rowe Price but you have been terminated, you have several options. You can choose to leave the 401(k) money with T. Rowe Price, roll over to your new employer’s 401(k) or IRA, or withdraw the 401(k) money.
If you want to leave your 401(k) balance with T. Rowe Price, your balance must be at least $5,000. If the balance is below $5,000, the vested balance will either be automatically distributed to you or rolled over to an IRA established in your name.
If you choose to rollover to your 401(k) or IRA, you can request a direct rollover to your plan custodian. However, if you prefer to withdraw your 401(k) balance, you can request a cash out of your money; be aware that you will owe income taxes and an additional 10% penalty tax if you are below age 59 ½.
Costco 401k withdrawal
If you are a participating Costco employee, you may be allowed several types of withdrawals i.e. rollover contribution distributions, after-tax distributions, age 59 ½ distributions, and hardship distributions.
Rollover contribution distribution allows you to withdraw part or all of the funds you rolled over from a previous employer. You can withdraw the rollover contributions at any time, before or after age 59 ½. If you have an after-tax 401(k), you can take a distribution from the 401(k) plan at any time. Also, once you reach age 59 ½, you can withdraw part or all of your 401(k) distributions; you will owe income taxes on the withdrawal, but you won’t be subject to a 10% penalty tax.
You can request a Costco 401(k) withdrawal by contacting T Rowe Price at 1-800-922-9945, or online on the T Rowe Price website.
Costco 401k early withdrawal
If you are below age 59 ½ and you are a participating employee, you may be allowed to take an early withdrawal from your Costco 401(k) plan. You must have an immediate and heavy financial need to be eligible for a hardship withdrawal. Generally, the hardship withdrawal cannot be more than the amount of your financial need, and it is payable in a single lump sum.
Some of the eligible hardship events include medical care expenses (for you, your spouse, or your dependents), costs required for the purchase of your primary residence, costs required to prevent eviction from or foreclosure of your primary residence, payments for burial or funeral expenses (for your deceased parent, child, spouse, or dependent), etc.
Costco 401k rollover form
If you want to rollover your Costco 401(k) money to another plan, you can obtain the rollover form online on the T Rowe Price website. You will be required to fill out the rollover form, indicating the amount you want to rollover, the destination retirement plan, plan custodian wire transfer information, your signature, etc. Remember to request a direct rollover, so that the 401(k) money is transferred directly to the new plan custodian.
Costco 401k account number
You can find your Costco 401(k) account number in your plan communications. Check the emails sent by T Rowe Price regarding your 401(k) savings, including 401(k) statements and plan notifications. You can also check your 401(k) account number under your profile when you log in to your 401(k) account on the T Rowe Price website.
Costco 401k phone number
You can contact the T. Rowe Price customer service at 1-800-922-9945 between Monday to Friday, from 7.00 am to 10.00 PM EST. There is also an automated voice response service that is available 24/7. If you have unanswered questions relating to your 401(k) benefits, you can contact the Costco Human Resource Department at 1-800-284-4882.
Costco 401k administrator
The Costco 401(k) plan administrator is the Costco Benefits Committee. The plan administrator is responsible for plan administration, interpretation of plan documents, as well as granting and denying benefits. You can contact the Costco Benefits Committee at 1-425-313-8100. You can write to the benefits committee at the following address: 999 Lake Drive, Issaquah, WA 98027-8990.
Costco 401k eligibility
To be eligible to participate in the Costco 401(k) plan, you must be at least age 18 or older and complete 90 days of service within a 12-month consecutive period. You can join the 401(k) on the first day of the month after you meet this requirement, or any day thereafter.
If you want to start making salary deferral contributions, contact T Rowe Price by calling 1-800-922-9945 or online on the T. Rowe Price website. You should elect the percentage you want to contribute to the plan and pick your investment choices.
If you are eligible to participate in the Costco 401(k) plan, but you don’t take any action, you will be automatically enrolled into the plan. The automatic contribution will be 3% of your paycheck as a pre-tax salary deferral contribution.
Costco 401k vesting
If you participate in the Costco 401(k) plan, you are always 100% vested in your salary deferral contribution, rollover contributions, and profit-sharing contributions.
However, employer match and discretionary contributions are subject to a vesting schedule, depending on your years of service. You become 20% vested after 2 years of service, 40% vested after 3 years of service, 60% vested after 4 years of service, and 100% vested after 5 years of service.
However, if you have not completed the 5 years of service, you may become 100% vested if you turn age 65 while actively employed, terminate employment due to total disability, die while still employed, or if the plan is terminated.
Costco 401k app
Costco 401k summary plan description
You can request a Costco 401(k) summary plan description by calling the plan administrator at 1-425-313-8100. You can also request the summary plan description by writing to the plan administrator at the following address: 999 Lake Drive, Issaquah, WA 98027-8990.