401(k)

What you need to know

The PayPal 401(k) Savings Plan. It’s one of the easiest ways to save pre-tax dollars for retirement—and get free money from PayPal, too! Contribute up to 50% of your eligible earnings, up to the IRS limit of $22,500. PayPal also matches 100% of your contribution, up to 4% of your salary.

Eligible employees can participate in the plan at any time. So, it’s never too late to start contributing or increase your contributions.

New hire? Typically, you can enroll in the 401(k) within 7-10 days of your hire date, or as soon as administratively possible after Schwab completes your account profile set-up. You’ll receive a welcome communication from Schwab with instructions on how to login after your profile is set up in the Schwab system.

Enroll now

With Schwab’s new Easy Enroll feature, you can enroll in the PayPal 401(k) with one click. When you first sign up, you’ll be enrolled in the Plan at 4% of your eligible compensation and invested in target date retirement funds. The automatic 4% contribution allows you to take advantage of PayPal’s 4% employer match and takes the guesswork out of investing.

Three ways to enroll

Create a login using the Register Now button, then log in to your account, and click Confirm Easy Enrollment. Once you’re enrolled, you can make changes to your investment and savings elections at any time. View the 401(k) payroll cut-off dates.

You can also enroll by calling the Schwab Plan Hotline at 800-724-7526. Once you complete enrollment, you’ll receive a letter by mail or email confirming your selections. Your contributions will be deducted from the next applicable payroll cycle.

You can typically change the investment allocations of your existing account balances, change the investment selections for future contributions, or change your beneficiary(ies) as often as you like, though changes may take time to process.

If you have assets in a qualified retirement plan with a previous employer, several options may be available to help you manage an additional retirement account. For more information about rollovers, call Schwab’s Plan Hotline.

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Provider contact information

Get the max match from PayPal

Get free money for doing something you should!

  • 4% company match
  • Immediate vesting
  • Catch-up contributions of up to $7,500 (if age 50+)
  • Max out at $22,500 in 2023 (or $30,000 if age 50+)
  • Contributions made each pay period from your eligible compensation

True-up feature

With the true-up feature, you always get the max match from PayPal if you contribute at least 4% of your salary, regardless of when you start contributing during the year. For more details on PayPal’s matching, review the 401(k) guide.

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More ways to save for retirement

Learn more about the different contribution types and annual limits by reviewing the 401(k) guide.

Pre-tax contributions

Roth contributions

After-tax contributions

Contribution limits

The IRS has limits on the amount that can be contributed each year, so it's important to understand how much you can contribute. For 2023, you can contribute up to $22,500 in pre-tax and/or Roth 401(k) contributions, plus an additional $7,500 if you are age 50 or older by the end of the calendar year.

The IRS also limits the total amount that can be contributed from you and PayPal each year. This limit, called the 415(c) limit, is $66,000 ($73,500 if you are 50 or older by the end of the 2023 calendar year). This amount includes your pre-tax and Roth 401(k) contributions, PayPal matching contributions, and your after-tax contributions.

This table shows the 2023 401(k) Plan contribution options and IRS limits. It's important to note that if you maximize the annual IRS contribution limit for pre-tax and Roth 401(k) contributions, your after-tax contributions cannot exceed $30,300, as shown in the example below.

Contribution Type Amount
Pre-tax and Roth 401(k) IRS contribution limit $22,500
($30,000 if 50+)
Maximum PayPal matching contribution you’re eligible to receive $13,200
Maximum after-tax contribution you’re eligible to make + $30,300
2023 IRS annual additions limit $66,000
($73,500 if 50+)

Example is for illustrative purposes only. PayPal and Schwab Retirement Plan Services, Inc. do not provide tax or legal advice.

If you exceed the IRS limits

It’s your responsibility to monitor your contributions to ensure you do not exceed the IRS limits. In the first quarter of each year, Schwab Retirement Plan Services reviews participant total contributions against this limit. If it is determined that you have exceeded the IRS limits, any excess employee contributions (adjusted for any earnings) will be refunded to you along with an IRS 1099-R in March 2023. Refunds of after-tax contributions may be included in your taxable income.

Please login to your Schwab account (if you are on the PayPal network) or visit workplace.schwab.com if you’d like to review your 2022 contributions. If you have questions about the IRS limits and 401(k) Plan excess contributions, please contact Schwab’s Participant Services using the contact information below.

In-plan Roth rollover options

There are two ways to request an in-plan Roth rollover. One-time rollovers of existing balances or automatic rollovers of after-tax contributions. To learn more about this feature, read the 401(k) guide.

Important: If you have accumulated after-tax balances in the 401(k) Plan by the time you sign up for automatic rollovers, a portion of each automatic rollover you request may include a taxable distribution. This is required by income tax regulations. Find out more at workplace.schwab.com. Be sure to also talk to your tax advisor to understand how after-tax contributions and automatic rollovers could work together and how changes to your elections could impact your tax liability. Review the Automating Your In-Plan Roth Rollover Election flyer for more information.

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Get help with investing

“Diversify your portfolio.” “Don’t put all your eggs in one basket.” “Invest in stocks more and bonds less.”

For personalized investment guidance, you can speak with an advice consultant. Call the Schwab Plan Hotline at 800-724-7526, Monday through Friday, 4 a.m. to 6 p.m. Pacific Time.

A broad array of investment strategies are available, including:

  • Target date funds
  • Retirement plan advice
  • 401(k) Plan-selected investments, and
  • A self-directed brokerage account

Review the 401(k) guide for more information.

Prefer to do it yourself?

The Schwab Personal Choice Retirement Account® (PCRA) provides people like you—knowledgeable investors—with even more investment options. It's designed to give you more investment flexibility, increased diversification, and allow you to play a greater role in managing your PayPal 401(k) Savings plan investments. Read the PCRA Fact Sheet, which explains where to go to access your account, open a PCRA, and manage your PCRA once established. You can also watch an on-demand webcast about the PCRA option.

For a fee, you can receive professional management of your 401(k) Savings plan through the managed account service, which provides ongoing investment monitoring and will automatically make changes to your investments as your retirement needs change and you get closer to retirement.

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Think big picture when it comes to your finances

Did you know that Schwab offers live and on-demand webinars to help you address your finances during these challenging times? Visit schwab.com/yourmoney to view on-demand content at your convenience or register for live webcasts.

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For additional information read the plan documents.

401(k) plan documents