JPMorgan Chase 401(k) Savings Plan Recent Communications February 2018 Match Confirmations Special Award Questions & Answers Document (U.S.) Annual Incentive Compensation Election Q&A
February 2018 Dear Participant: Congratulations! Matching contributions were credited to your account in the JPMorgan Chase 401(k) Savings Plan (Plan) on February 1, 2018. Saving for retirement is important, and by contributing to the Plan, you are taking advantage of a valuable benefit provided by the company. About the match The following are details about the matching contribution: For 2017, JPMorgan Chase provided you with dollar-for-dollar matching contributions of up to 5% of your Eligible Compensation (base salary/regular pay and any annual and non-annual cash incentives you received). Matching contributions are calculated and credited on an annual basis following the end of the calendar year. The match credited to your account was based on eligible contributions and compensation paid from January through. (Please note: If you completed your first year of service in 2017, only contributions you made, and compensation paid, on or after the first day of the month following completion of one year of service are eligible for matching contributions.) The matching contribution was invested in the same manner as your own contributions to the Plan. View your account You can view the company match allocated to your plan account on the 401(k) Savings Plan Web Center by clicking the Transaction history link in the Account Information section. The matching contribution will also be reflected on your first quarter 2018 statement, which will be available in the coming months. (Please note: Any matching contributions related to the 2016 plan year are reflected on your statement ending February 17, 2017. You can access this statement on the Web Center in the Account Information section under Statements and documents. ) Contact information Visit the 401(k) Savings Plan Web Center via My Rewards from the intranet; or Go to myrewards.jpmorganchase.com from the Internet. If you have questions, contact the 401(k) Savings Plan Call Center at 1-866-JPMC401k (1-866-576-2401), or 1-303-737-7204 if calling from outside the United States. (The TTY number is 1-800-345-1833.) Client Service Representatives are available from 8 a.m. to 10 p.m. Eastern time, Monday through Friday, except New York Stock Exchange holidays. Sincerely, JPMorgan Chase Corporate Benefits The JPMorgan Chase U.S. Benefits Program is available to most employees on a U.S. payroll who are regularly scheduled to work 20 hours or more a week and who are employed by JPMorgan Chase & Co. or one of its subsidiaries to the extent that such subsidiary has adopted the JPMorgan Chase U.S. Benefits Program. This information does not include all of the details contained in the applicable insurance contracts, plan documents, and trust agreements. If there is any discrepancy between this information and the governing documents, the governing documents will control. JPMorgan Chase & Co. expressly reserves the right to amend, modify, reduce, change, or terminate its benefits and plans at any time. The JPMorgan Chase U.S. Benefits Program does not create a contract or guarantee of employment between JPMorgan Chase and any individual. JPMorgan Chase or you may terminate the employment relationship at any time. Securities offered or distributed through GWFS Equities, Inc., Member FINRA/SIPC and a subsidiary of Great-West Life & Annuity Insurance Company. AM376097-0118
Special Award Q&As for U.S. Employees The following Questions & Answers highlight important information regarding the Special Award ( Award ) to be made in late January 2018 to U.S. benefits-eligible employees who meet the award criteria. 1. What is the Special Award? The Award is a contribution made by the company to the 401(k) Savings Plan account of eligible employees in late January 2018. The Award is a maximum of US$750, not to exceed 7.5% of your annual base salary. 2. Why is JPMorgan Chase granting this Special Award? JPMorgan Chase is making this Award to recognize employees for their outstanding dedication to serving our customers, communities and shareholders, and so that employees at all levels may be recognized for their contributions to our company s performance in 2017. 3. Who is eligible for the Special Award? You are eligible for the award if you meet all of the following criteria: You are eligible to participate in the JPMorgan Chase U.S. Benefits Program 1 ; You have at least one year of service 2 with JPMorgan Chase as of December 31, 2017; You are employed with JPMorgan Chase on the date the award is distributed; and Your 2018 Total Annual Cash Compensation 3 (determined as of August 1, 2017) is less than $60,000. The 2018 Total Annual Cash Compensation is the same compensation that was used to determine your pay tier for JPMorgan Chase 2018 medical plan contributions and can be found on the Benefits Web Center. 4 4. How will the Special Award be paid? For eligible employees, the Award amount will be contributed directly to your 401(k) Savings Plan account as of the next available pay cycle after the grant date in late January 2018. 5. What if I don t participate in the 401(k) Savings Plan? If you don t currently participate in the 401(k) Savings Plan, an account will be set up for you. No action is required on your part. 6. Why is the Special Award being made to the 401(k) Savings Plan? Investing for the future is important, so the Award is being distributed in a way that will help you build a financially secure retirement. 7. When will I become vested in my Special Award? You are immediately fully vested in the Award, meaning you will not lose the Award if you leave the firm. 8. Can I direct the investment of my Special Award on my own? The Award will be invested according to the investment elections on file for your own future contributions to the 401(k) Savings Plan. If you have no investment elections under the Plan, the Award will be invested in the Target Date Fund that most closely aligns with the year in which you will turn age 65. Once the Award is made, it s immediately transferrable and can be invested in any of the investment funds offered under the Plan. 9. Will income taxes be deducted from the Special Award? Income taxes on the Award will be deferred until you take a distribution from your 401(k) Savings Plan. 1
10. Will this Special Award be awarded annually? The Special Award is not intended to be automatically granted on an annual basis. The Award is made at the firm s discretion and receipt of the Award does not mean that you will receive another award in the future. 11. Where can I go for more information on the Special Award and my eligibility? This document summarizes the information available at this time. If you are an eligible employee, you will receive a communication in February 2018 confirming your Award. 12. Where can I go for more information about the JPMorgan Chase 401(k) Savings Plan? For more information about the 401(k) Savings Plan: Visit me@jpmc > Benefits & Rewards > Retirement Savings. If you are currently enrolled in the Plan, go to the 401(k) Savings Plan Web Center via My Rewards from the intranet or myrewards.jpmorganchase.com from the internet. Contact the 401(k) Savings Plan Call Center at 1-866-JPMC401k (1-866-576-2401). (The TTY number is 1-800-345-1833.) Representatives are available from 8 a.m. to 10 p.m. Eastern time, Monday through Friday, except New York Stock Exchange holidays. 1 Benefits eligibility: The JPMorgan Chase U.S. Benefits Program is available to most employees on a U.S. payroll who are regularly scheduled to work 20 or more hours a week and who are employed by JPMorgan Chase & Co. or one of its subsidiaries to the extent that such subsidiary has adopted the JPMorgan Chase U.S. Benefits Program. 2 Service: For purposes of this Special Award, service is generally defined as the period beginning on your first day actively at work as an employee of JPMorgan Chase or an affiliate and ending when your employment ends. This generally includes all periods of employment with JPMorgan Chase or any of the merged companies that have become part of JPMorgan Chase. 3 Total Annual Cash Compensation: For purposes of this Special Award, your Total Annual Cash Compensation generally includes your rate of base salary/regular pay plus any applicable job differential pay (e.g., shift pay) as of August 1, 2017, plus any cash earnings from any incentive plans (e.g., annual incentive, commissions, draws, overrides, and special recognition payments or incentives) that are paid to or deferred by you for the 12-month period ending July 31, 2017. Overtime pay is not included. 4 To see your 2018 Total Annual Cash Compensation: Go to My Health via me@jpmc > Benefits Web Center > Your Profile > Personal Information > Personal Details > 2018 Annual Total Cash Compensation for Medical Contributions. The Special Award will be awarded to eligible employees of JPMorgan Chase & Co. and any of its subsidiaries that were at least 80% owned by JPMorgan Chase & Co. and who were participating in JPMorgan Chase s benefits programs on the contribution date. This Special Award does not confer on an eligible employee any right or entitlement to, nor does the Award impose any obligation on JPMorgan Chase to provide, the same or any similar award in the future. No payments under the award shall be taken into account as salary or other relevant compensation in determining an eligible employee s benefits under any compensation, pension or welfare plan, program, or arrangement maintained by JPMorgan Chase. This program (or a similar one) applies to eligible employees outside the United States, unless the laws of a particular jurisdiction restrict or otherwise do not make it feasible to extend the benefits of the program to employees located in that jurisdiction. The JPMorgan Chase U.S. Benefits Program is available to most employees on a U.S. payroll who are regularly scheduled to work 20 hours or more a week and who are employed by JPMorgan Chase & Co. or one of its subsidiaries to the extent that such subsidiary has adopted the JPMorgan Chase U.S. Benefits Program. This information does not include all of the details contained in the applicable insurance contracts, plan documents and trust agreements. If there is any discrepancy between this information and the governing documents, the governing documents will control. JPMorgan Chase & Co. expressly reserves the right to amend, modify, reduce, change or terminate its benefits and plans at any time. The JPMorgan Chase U.S. Benefits Program does not create a contract or guarantee of employment between JPMorgan Chase and any individual. JPMorgan or you may terminate the employment relationship at any time. 2
JPMorgan Chase 401(k) Savings Plan Annual Incentive Compensation Election Q&A The following Questions & Answers highlight some important information regarding the JPMorgan Chase 401(k) Savings Plan (Plan) Annual Incentive Compensation election. Important Note The 401(k) Savings Plan contribution elections for Annual Incentive Compensation are made prior to knowing how much, if any, Annual Incentive Compensation you may receive. It s important that you make informed decisions only after carefully reading all of the plan-related materials, including information on the investment funds. (For copies of these materials, please see Contact Information. ) You may also want to consult a financial planner regarding a strategy that s right for you. 1. What is Annual Incentive Compensation? Annual Incentive Compensation is the annual cash incentive compensation awarded under the firm s Performance-Based Incentive Plan (generally paid in January) or Branch Profitability Incentive Plan (generally paid in February). 2. There are two separate contribution rates: per-pay rate and Annual Incentive Compensation Rate. What do these refer to? Per-pay (Standard) rate applies to your Ongoing Compensation (base salary/regular pay and any non-annual cash incentives you receive). Non-annual incentive compensation includes cash incentives that are paid throughout the year, such as sales awards and monthly and quarterly incentives. It also includes any cash incentives paid annually other than Annual Incentive Compensation. Annual Incentive Compensation (Other) rate applies only to the cash compensation awarded, if any, under the firm s Performance-Based Incentive Plan (generally paid in January) or Branch Profitability Incentive Plan (generally paid in February). Your per-pay rate is not applied to the cash portion of your Annual Incentive Compensation, if any. You can contribute from your per-pay Ongoing Compensation, your Annual Incentive Compensation (if any), or both, up to the annual legal limits. See Q&A #10 for more information on limits. 3. What if I do nothing? The percentage that you have on file as your per-pay (Standard) rate will continue to be applied to your base salary/regular pay as well as any non-annual incentive compensation. You can change this rate at any time. If you do not proactively make a new contribution election for Annual Incentive Compensation (Other), if any, your rate on file from previous years will be applied whether that is 0% or any other election as of the deadline on the last business day of the calendar year. 1 1 If you are subject to a quarterly window period and you have an investment election on file to direct future contributions to the JPMorgan Chase Common Stock Fund, you may only make an election during an open window period. 1
4. Are there any special considerations for employees who have been here less than one year? A significant consideration is whether your Annual Incentive Compensation is match eligible. 2 If you were hired in 2017, any Annual Incentive Compensation you receive in early 2018 will likely be ineligible for matching contributions as only contributions you make and compensation paid beginning the first day of the month after completing one year of service are eligible to be matched. For example, Sally was hired on February 2, 2017 and will become eligible for matching contributions on March 1, 2018. Any contributions she makes to the plan between February 2, 2017 and February 28, 2018 are not eligible for matching contributions. Any amounts up to 5% of Eligible Compensation contributed from March 1, 2018 through the end of 2018 will be matched assuming Sally is employed as of December 31, 2018. Keep in mind that there is an annual IRS limit on your employee contributions. See Q&A #10 for more information on limits. Company match The 401(k) Savings Plan provides a dollarfor-dollar match up to 5% of Eligible Compensation, which includes Annual Incentive Compensation, for eligible employees. 2 Eligible Compensation is the sum of your Ongoing Compensation (base salary/regular pay and any non-annual cash incentives you receive) and your Annual Incentive Compensation. (It does not include overtime payments, sign-on bonus and similar awards, referral awards, stipends, non-cash awards such as equity awards and allowances.) One simple way to ensure that you receive the full 5% match is to contribute 5% of your Annual Incentive Compensation (if any) and 5% of your Ongoing (per-pay) Compensation throughout the year. 5. How can I maximize my 401(k) match if I receive Annual Incentive Compensation but do not contribute from it? Any Annual Incentive Compensation award you receive beginning the first of the month after you complete one year of service is included in your maximum match-eligible compensation for that year. Therefore, if you do not contribute from the cash portion of your Annual Incentive Compensation, you may need to increase your per-pay (Standard) contribution rate throughout the year to get to at least 5% of your Eligible Compensation. Remember, you need to contribute 5% of your Eligible Compensation for the year to maximize the matching contribution the firm provides. If you d like assistance modeling different contribution scenarios, please call the 401(k) Savings Plan Call Center (see the last page for Contact Information ) and a Client Service Representative can assist you. 6. When can I make my 401(k) contribution election for Annual Incentive Compensation? You can elect to contribute from the cash portion of your Annual Incentive Compensation from the first business day in March through the last business day of the calendar year. 3 Please note: You must make your contribution election prior to knowing how much, if any, Annual Incentive Compensation you may receive. The election on file as of the last business day of the calendar year is irrevocable and will be applied to the cash portion of any Annual Incentive Compensation you may receive the following January (or February). 2 Generally, you must have Total Annual Cash Compensation of less than $250,000 and be actively employed on December 31 to receive matching contributions for that year. You re eligible for the company match after one year of service. Only contributions made, and compensation earned, after one year of service are match eligible. For the purposes of determining your eligibility to receive matching contributions under the 401(k) Savings Plan, your Total Annual Cash Compensation is recalculated as of each August 1 to take effect the following January 1 and remain unchanged throughout the year. You can view your Total Annual Cash Compensation amount on the Benefits Web Center. 3 If you are subject to a quarterly window period and you have an investment election on file to direct future contributions to the JPMorgan Chase Common Stock Fund, you may only make an election during an open window period. 2
7. What if I made an Annual Incentive Compensation election in a previous year? If you have a 401(k) Annual Incentive Compensation contribution election on file from a previous year, that election will continue to be in effect this year unless you change it (to 0% or any other percentage) before the deadline on the last business day of the calendar year. 4 For example: You elected to contribute 10% of the cash portion of your Annual Incentive Compensation to your 401(k) last year. Unless you change your election prior to the deadline, 10% will be taken from the cash portion of any Annual Incentive Compensation in early 2018, regardless of whether the dollar amount of your Annual Incentive Compensation changes. 8. Does making a 401(k) contribution election for Annual Incentive Compensation mean that I will get an award? No. Annual Incentive Compensation is awarded by the firm at its sole and absolute discretion. The ability to make a contribution election is not a guarantee or promise that you will receive any Annual Incentive Compensation for any performance year, even if you received one in a prior year. 9. What if I make an election but don t receive any Annual Incentive Compensation? If you make an Annual Incentive Compensation contribution election, but do not receive an award, then no 401(k) deduction will be taken. Your new election, however, will replace your previous election and will remain on file until you change it. 10. What is the maximum dollar amount I can contribute to my 401(k) in 2018? The 2018 maximum IRS contribution limit for all 401(k) employee contributions including per-pay (Standard) deductions as well as any contribution from Annual Incentive Compensation (Other) is $18,500 ($24,500 for individuals age 50 or older). These limits will be systematically monitored so that you don t exceed the maximum legal limit across all of your contributions to the JPMorgan Chase 401(k) Savings Plan. 11. Can I make Roth AND before-tax contributions from my per-pay (Standard) as well as my Annual Incentive Compensation (Other)? You can elect to contribute up to 50% on a before-tax and/or Roth basis as your per-pay contribution rate (deducted from your base salary/regular pay and any non-annual incentives) and your Annual Incentive Compensation rate. Please note: If you elect to contribute on both a before-tax and Roth basis, your before-tax deductions will be made first, then your Roth deductions. Therefore, depending on your rate, it is possible that your before-tax deduction causes you to reach the IRS contribution limit, resulting in limited or no Roth contribution to your account. (This is more likely to happen with Annual Incentive Compensation.) 4 If you are subject to a quarterly window period and you have an investment election on file to direct future contributions to the JPMorgan Chase Common Stock Fund, you may only make an election during an open window period. 3
Contact Information Visit the 401(k) Savings Plan Web Center via My Rewards from the intranet or myrewards.jpmorganchase.com from the Internet. If you have questions, call the 401(k) Savings Plan Call Center at 1-866-JPMC401k (1-866-576-2401), or 1-303-737-7204 if calling from outside the United States. (The TTY number is 1-800-345-1833.) Client Service Representatives are generally available from 8 a.m. to 10 p.m. Eastern time, Monday through Friday, except New York Stock Exchange holidays. The JPMorgan Chase U.S. Benefits Program is available to most employees on a U.S. payroll who are regularly scheduled to work 20 hours or more a week and who are employed by JPMorgan Chase & Co. or one of its subsidiaries to the extent that such subsidiary has adopted the JPMorgan Chase U.S. Benefits Program. This information does not include all of the details contained in the applicable insurance contracts, plan documents and trust agreements. If there is any discrepancy between this information and the governing documents, the governing documents will control. JPMorgan Chase & Co. expressly reserves the right to amend, modify, reduce, change or terminate its benefits and plans at any time. The JPMorgan Chase U.S. Benefits Program does not create a contract or guarantee of employment between JPMorgan Chase and any individual. JPMorgan Chase or you may terminate the employment relationship at any time. Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker dealers. GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company. Empower Retirement family of companies refers to products and services offered through Great-West Life & Annuity Insurance Company; Great-West Life & Annuity Insurance Company of New York, located in New York, NY; EMJAY Corporation; Great-West Trust Company, LLC; Great-West Funds, Inc. and certain affiliates and subsidiary companies. GWFS Equities, Inc. registered representatives may also be investment adviser representatives of GWFS affiliate, Advised Assets Group, LLC. Representatives do not offer or provide investment, fiduciary, financial, legal or tax advice or act in a fiduciary capacity for any client unless explicitly described in writing. AM320243 1217 4