401(k)
No matter what you imagine for retirement, retirement readiness is an important part of overall financial wellness. The Databricks 401(k) Plan administered by Fidelity offers a variety of investment options.
Eligibility
You are eligible to participate in the Databricks 401(k) Plan on your first day of employment. When eligible, you may enroll in the 401(k) plan, designate beneficiaries, and allocate your asset distribution at any time. You will be automatically enrolled at 3%* pre-tax after 60 days from date of hire and invested in your age-appropriate target date fund closest to the year you turn age 65. If you choose to opt out of participating in the 401(k) plan, you must change your contribution rate to 0% within your first 60 days with Fidelity.
In 2025, you may contribute up to the IRS maximum of $23,500 - pre-tax and Roth. If you are age 50 or over, you can make “catch-up” contributions up to $7,500.
Contributed over the IRS limit? Please contact peopleops@databricks.com.
*If you do not opt out of the Plan or make an active election, your automatic contributions will automatically increase 1% each year, up to 10%, on January 1st to help you reach your retirement goals.
How to Enroll
- Log in to Fidelity at www.401k.com. For new users, you will need to "Register As A New User". If you already have a Fidelity account, you can use your current credentials. Please note: new hires won't be able to register as a new user or access the Databrick 401(k) Plan through their existing Fidelity account until the week following their start date.
- Select your contributions and investments.
- Designate your beneficiary.
Need help? You can contact Fidelity at 1-800-835-5097.
How to Save
You have three ways you can contribute to the Databricks 401(k) Plan - pre-tax, Roth, and after-tax through payroll deductions. Refer to the comparison table below.
2025 Limits
*Subject to the IRS limit of $23,500 in 2025. Contribution limits refer to the combined total of traditional pre-tax and Roth contributions. If you are age 50 or older in 2025, you can contribute an additional $7,500*. The IRS maximum contribution limit total (415 limit) for 2025 is $70,000. ** Databricks' administrative contribution limit
New Hire External Contributions
If you are a new hire and contributed to your previous employer’s 401k in the current year, please complete the External 401k Plan Contributions Form within your first week of employment. Once your submission is reviewed, the Payroll team will add your previous 401k contributions into Workday to prevent you from exceeding the annual 401k plan limits. If you have already met the annual 401k plan limit for the year, login to Fidelity’s website netbenefits.com and set your 401k deferral to 0% for the remainder of the year. Otherwise, you will be auto-enrolled at 3% in the applicable target date retirement fund after 60 days from your hire date.
Changing Your Current Contributions
You can change your 401k contribution rate within your Fidelity account. Login to Fidelity at www.401k.com. Note: Changes will take 1-2 pay periods to be reflected.
Return of Prior Year Excess Contributions
If you were a new hire last year and contributed to more than one employer's 401(k) plan during the year, please complete the following steps to ensure that you have not exceeded any annual 401(k) plan limits:
- Review Box 12 on your Form W2s or payslips from all employers (including Databricks) to confirm the total amount of all elective deferrals (both pre-tax deferrals and designated Roth contributions) you contributed during the year.
- Complete the Return of Excess Contributions Form and include redacted copies of your W2(s) or pay records.
- Upon receipt of the required documentation, your request will be submitted to Fidelity Investments to process a refund of your excess contributions.
- Prior year contribution requests must be processed no later than the April 15 tax deadline.
- A W-2c is not issued for 401(k) excess deferral corrections. Fidelity will return the excess amount, along with applicable earnings/losses directly to you. In addition, you will receive a 1099-R reflecting the distribution.
Return of Current Year Excess Contributions
If you are a new hire, review your payslips from all current year employers (including Databricks) to confirm the total amount of all elective deferrals (both pre-tax deferrals and designated Roth contributions) and determine whether you have exceeded any annual 401(k) plan limits. If so, follow the steps below:
- Login to Fidelity’s website netbenefits.com and set your 401k deferral to 0% for the remainder of the year.
- Complete the Return of Excess Contributions Form and include redacted copies of your pay records.
- Upon receipt of the required documentation, your request will be submitted to Fidelity Investments to process a refund of your excess contributions.
- Current year contribution requests must be processed no later than next year’s April 15 tax deadline.
In-Plan Roth Conversions
In-Plan Roth conversions give you the opportunity to convert pre-tax and/or after tax (non-Roth) deferrals to Roth money within the Databricks 401(k) Plan. Taxes may be owed upon conversion, but future qualified distributions will be tax-free. Only vested money is eligible to be converted.
Call Fidelity at 1-800-835-5097 for more information and instructions on how to set up an automatic conversion to Roth.
Webinars and Workshops
Sign up for upcoming Fidelity webinars and workshops here. Sign up for upcoming SageView webinars here.
What happens to your savings if something happens to you?
Add a beneficiary to your 401(k) plan to give you and your family the peace of mind that your savings will be taken care of.
Text CARE to 343-898 to make sure your account is up-to-date. Scan to learn more or hover your phone's camera over the code (No App Needed).
Investment Advisor
Please reach out to Eric Weissman at SageView, our investment advisor, for financial investment guidance.
After-tax Contribution Information
Information on After-Tax Contributions Webinar - July 2022 Databricks 401k After-Tax Presentation
Tips on How to Save for Retirement
- Start saving as soon as possible to grow your retirement account.
- Begin with small contributions, if necessary, and increase contributions over time.
- Make setting aside money for retirement a habit.
- Understand investment returns may fluctuate.
- Let it sit. Avoid penalties by leaving funds in your 401(k) until retirement.
- If you change jobs, you can roll over your retirement account.
