Retirement Benefits

Who is the 401(k) Plan record keeper?

Alight (formerly known as Aon Hewitt) is the Baker Hughes 401(k) Plan record keeper. They are the record keeper for all contributions (pre-tax, after-tax, Roth) made by you and Baker Hughes.

What ways can I contribute to my 401(k)?

You can contribute to your 401(k) on a pre-tax, after-tax or Roth basis. You can contribute to one or all of these contribution types. All contributions are made through bi-weekly payroll deductions.

Should I contribute on a pre-tax, after-tax, or Roth basis?

You should consult with your tax or financial advisor as you make this decision. There are pros and cons to each of these three options and your tax or financial advisor can help you decide the right path for you.

How much can I contribute to my 401(k)?

You can contribute up to $19,000 in 2019 and $19,500 in 2020 to your 401(k), from 1% to 50% of your eligible pay. If you are age 50 or older, you can make an additional catch up contribution of $6,000 in 2019 or $6,500 in 2020. These limits apply to the combination of your pre-tax and Roth contributions. Regular after-tax contributions and Baker Hughes contributions are not subject to these limits. Please refer to the Summary Plan Description to learn about all the IRS limits pertaining to your 401(k).

Do I have to make a separate election for the catch-up contributions?

Yes.

How often can I change my contribution?

You may change contribution amounts or change investment elections at any time. 

How much does Baker Hughes contribute to my 401(k)?

Baker Hughes automatically contributes 4% of your eligible pay to your account every pay period, even if you do not elect to contribute. In addition, Baker Hughes will make company matching contributions dollar for dollar up to 5%. So, if you contribute 5% through pre-tax, Roth and/or regular after-tax contributions, you’ll get a 14% contribution each pay period. If you hit the combined pre-tax/Roth contribution limit of $19,000 before the final pay period of the year you will need to switch to regular after-tax contributions for the rest of the year to continue receiving company match contributions.

How much do I need to contribute to get the full Baker Hughes match?

You need to contribute 5% of your eligible pay to get the full match.

Are the Baker Hughes contributions made every pay period, quarterly or once a year?

Baker Hughes contributions are made every pay period.

What pay is eligible for 401(k) contributions?

Your eligible pay includes, but is not limited to:

  • Your regular base pay 
  • Overtime pay 
  • Shift differentials 
  • Commissions
  • Eligible bonuses paid during the year
  • Eligible field pay

What's the vesting schedule for 401(k) contributions?

You are always 100% vested in your own contributions, the company’s matching contributions and any related earnings. Being “100% vested” means the money is yours to keep, even if you leave the company. You become 100% vested in the company base contributions and any related earnings when you:

  • Complete three years of vesting service, or
  • Retire from the company, or
  • Reach age 65 while still an active employee of the company, or
  • Become permanently disabled or die while an active employee of the company.

Who determines the funds in the 401(k) and will more options be made available in the future?

The funds offered in the Plan are overseen by an Investment Committee established by BHGE. The duties of the Committee include the establishment, monitoring and evaluation of investment funds, fund managers and investment expenses. The Committee will review the current 401(k) investment lineup in the next couple of months and will consider inclusion of additional index funds to the lineup going forward.

What are the investment options for my 401(k)?

You will have the choice of investing in Style Funds or Core Funds. The type of approach you choose will depend on your comfort level with making investment decisions and how much time you want to devote to managing your investments. Additional details about your investment options will be made available when you enroll.

Style Funds are pre-mixed, diversified funds that provide a quick and easy method for diversifying your investments with a single selection. You also have the choice of six Core Funds if you prefer to choose your investment mix.

Why are there expense differences between the GE and Baker Hughes 401(k) Plan investment options?

Expense differences between the GE and Baker Hughes 401(k) plans’ funds can generally be explained by the funds’ employment of passive or active investment management. A number of the fund offerings in the GE Plan are passively-managed (index) funds which carry relatively low expense ratios, whereas the Baker Hughes 401(k) plan mostly offers actively-managed funds which carry relatively higher expense rations. On average, active funds are expected to justify their higher expense via a greater return. The Committee periodically conducts investment expense reviews for all Baker Hughes 401(k) Plan funds to ensure competitiveness and reasonability.

Does the 401(k) Plan offer target date funds?

No. The Style Funds are based on your investment risk tolerance – conservative, moderate or aggressive – but are not based on a target retirement date.

Can I convert or rollover some of my 401(k) Plan pre-tax or regular after-tax contributions into 401(k) Plan Roth account?

At this time the 401(k) Plan does not allow for pre-tax and regular after-tax contributions to be converted into a Roth account inside the plan. These are called in-plan Roth conversions and is a feature under review for future implementation.

Who manages the funds in the 401(k) Plan?

Baker Hughes uses custom funds designed specifically for the 401(k) Plan. Investment managers used in the funds are selected by the Baker Hughes Investment Committee with the guidance of an investment consultant.

Can I take a loan from my 401(k)?

Yes. You can take one loan up to $50,000.

What happens to my 401(k) loan if I terminate employment?

If you terminate employment with an outstanding loan balance, you must repay the loan within 90 days or the loan will be in default and the unpaid outstanding balance will be deemed a taxable distribution to you in the default year.

Are 401(k) withdrawals available while employed?

Yes. Under certain circumstances, you may be able to make an early withdrawal from your account. 

You may withdraw all or part of your after-tax contributions, plus the applicable earnings. Amounts from earnings are subject to income taxes in the year they are withdrawn. If you withdraw any after-tax contributions, you will be suspended from making contributions to the BHGE 401(k) plan for six months.

You may withdraw your before-tax contributions and proportionate earnings if you qualify for a financial hardship withdrawal. For these purposes, financial hardship generally means you cannot obtain the funds from any other source (including the BHGE 401(k) plan loan provision) and you need the funds for certain reasons such as purchasing your primary residence, paying incurred uninsured and unreimbursed medical expenses for yourself, your spouse or your dependent children and repairing damage to primary residence due to certain natural disasters, along with other circumstances.

I have not been able to make Roth IRA contributions due to my income level. Am I allowed to make Baker Hughes 401(k) Plan Roth contributions?

Yes. Income limitations that apply to Roth IRA contributions do not apply to Baker Hughes 401(k) Plan Roth contributions. The only income limitation in the Baker Hughes 401(k) Plan applies to all contribution types (before-tax, Roth and regular after-tax). This limitation requires that neither you nor the company can contribute to the Baker Hughes 401(k) Plan after your plan eligible income reaches $275,000 in a year.

How can I view the performance of the 401(k) Plan funds?

Click here for the current 401(k) fund fact sheets which are updated monthly. 

What are the fees associated with the 401(k) Plan?

Click here for the latest 401(k) Plan Annual Fee Disclosure document.