As a participant, you may elect to defer eligible compensation each year instead of receiving that amount in current compensation.
You may elect to contribute to the SRP through one or all of the following:
Note: If you are newly eligible for the SRP during the plan year, you are not eligible to make a separate bonus deferral election during the plan year.
Every year, the IRS limits the amount you can save to the 401(k) Plan in a variety of ways. One way is by limiting the amount compensation that is be used to calculate your and the company 401(k) Plan contributions. In 2023 the limit is $330,000. If your eligible pay is below the compensation limit, and you do not choose to defer compensation into the SRP, all of your eligible pay would count towards the 401(k) Plan. If your eligible pay is more than the compensation limit, once you reach this compensation threshold all of your and company 401(k) Plan contributions will automatically stop. Refer to the examples to see how this works.
In addition, the IRS limits the amount you can contribute to the 401(k) Plan. In 2023 the limit is $22,500 for pre-tax and Roth (combined) contributions and $7,500 for pre-tax Roth catch up (combined) contributions.
Yes. You can defer eligible pay to the SRP if you wish to save more than what the IRS allows you to contribute in the 401(k) Plan via the combination of pre-tax and Roth contributions ($22,500 in 2023).
Yes. Assuming you are saving at least 5% each pay period in the 401(k) Plan, all of the eligible income will receive company contributions of 9% but the company contributions will be split between the 401(k) Plan and the SRP. Refer to the examples to see how this works.
No. Your deferral elections made are irrevocable.
Yes. Baker Hughes makes two types of SRP contributions.
A Basic contribution equal to the sum of:
A Base contribution equal to the sum of:
If you earn more than the IRS compensation limit, you will automatically receive company contributions on earnings that are not eligible to receive company contributions in the 401(k) Plan. You do not have to defer to the SRP to receive the maximum company contributions.
Read these examples for information about how the contributions work.
The IRS limits Baker Hughes 401(k) contributions in two ways. First, the total amount of before-tax/Roth contributions are limited (contribution limit). Secondly, the amount of compensation used to determine contributions is limited (compensation limit).
These 2023 IRS limits are:
You must contribute at least 5% each pay period in the 401(k) Plan to maximize company contributions in that plan. You do not have to contribute to the SRP to receive the maximum SRP company contributions. This gives you a total of 9% company contributions in your 401(k) account.
You are always 100% vested in your contributions.
Company basic contributions immediately vest. Company base contributions vest with three years of service. If you are a former GE Oil & Gas employee, your prior service at GE will count towards your vesting.
Contributions accumulate tax-free until you receive a distribution from the plan. The amount you elect to defer and any earnings on that amount will not be subject to income tax until it is distributed.
Contributions are generally subject to FICA (Social Security and Medicare) taxes as they are deposited into the SRP. If you defer part or all of your bonus, as the plan allows, any required FICA withholding is still required. That withholding will be taken from your bi-weekly pay until the full withholding requirement is satisfied.