Get a head start on saving—and build a future you can be proud of.
You're now eligible to enroll in the GapShare 401(k) Plan. Here's why that's a big deal: Saving in the plan is one of the best ways to prepare for your future. Take a moment to scroll through your plan features.
(If you are eligible for the GapShare Puerto Rico Plan, view your plan details.)
Eligibility and enrollment details
Eligibility to participate and receive Gap Inc. matching contributions.
Full-time Employee:
If you are a full-time employee who has attained age 18, you are immediately eligible to participate and for Gap Inc. matching contributions upon date of hire.
Part-time Employee:
If you are a part-time employee, who has attained age 18 years, you are immediately eligible to participate upon date of hire for employee deferrals only. You will become eligible for Gap Inc. matching contributions after completing 1,000 hours of service within the first 12 consecutive months from hire date. If hours are not met within the first 12 consecutive months, the computation period changes to calendar year.
Once you become eligible for Gap Inc. matching contributions you stay eligible indefinitely. If you were previously eligible for Gap Inc. matching contributions, you do not need to fulfill the eligibility requirements if you are rehired by the Company.
Vesting
Vesting refers to the portion of your account that you may take with you when you leave the company. Whenever you become eligible for the match, you will be immediately 100% vested in Gap Inc. matching contributions, meaning the money is yours as soon as it enters your account.
Don't put it off—enroll now and put your money to work for you
Your plan is set up so that you will be enrolled automatically in the GapShare 401(k) Plan on the two-year anniversary of your hire date, (or if later, on the anniversary of your hire date that occurs on or after you reach age 18).
If you decide to wait instead of actively enrolling now, you'll miss out on two years' worth of potential savings—including more money from Gap Inc. matching contributions—which could make a big difference for your future.
Part-time employees that are 18 years of age or older are immediately eligible to enroll in the plan to defer savings. Part-time employees will become eligible for Gap Inc. matching contributions after completing 1,000 hours of service within their first 12 consecutive months from hire date. If hours are not met within the first 12 consecutive months, the computation period changes to calendar year.
About automatic enrollment
When you are enrolled automatically, 1% of your before-tax base pay will be deducted from your paycheck beginning on your automatic enrollment date and invested in an age-based T. Rowe Price Retirement Blend Trust with the target date that is closest to the year you will turn 65. These automatic contributions will be 1% of your eligible pay each period for the first year following your automatic enrollment date. If you wish, you can save more than 1%, and you can choose to invest in any of the plan’s other investment options. You may also choose to opt out of the plan.
As a reminder, your total before-tax and/or Roth contributions cannot exceed the annual IRS limits for the calendar year. This means, the amount you deferred to a plan at your previous employer and the amount deferred to the GapShare 401(k) Plan during this calendar year cannot exceed the IRS annual limits.
You're always in control.
Once enrolled, you can always:
- Change your investment choices, increase or decrease your contribution rate up to the plan or IRS limits, or stop contributing at any time.
- Explore articles, calculations, and valuable resources—right at your fingertips.
- Manage your account online, or use the automated toll-free phone service 24 hours a day.
- Connect with your account on any device. Learn more at https://rps.troweprice.com/mobile solutions.
Important note about plan fees.
Each participant account under the plan will be charged an annual plan recordkeeping fee that covers the costs associated with plan administration and investment management services. The annual plan recordkeeping fee is expected to be $23 ($5.75 deducted quarterly). Fees are deducted from your account balance, and you can see plan fee deductions on your quarterly statement from T. Rowe Price.
Contributions
Take advantage of tax savings
When you contribute to the plan, you choose what type of contributions to make:
- Traditional before-tax contributions are made before taxes are taken out of your paycheck. That means your taxable income is lower today. You don’t pay taxes on these contributions or any earnings until you take a distribution, so you have more money invested and working for you.
- Roth 401(k) contributions are made with money that you have already paid taxes on, which means you don’t get a tax break today. But these contributions can grow tax-free, and qualified distributions are tax-free.* Tax-free earnings may result in more potential spendable retirement income than you would have if you made before-tax and/or non-Roth after-tax contributions.
- After-tax contributions are made with money you have already paid taxes on, so you don’t get a tax break today. You delay paying taxes on the earnings from your contributions until they are distributed.
- Some combination of the above.
You may elect to contribute, by payroll deductions, any of the following per pay period:
- Before-Tax Contributions: 1% to 30% of eligible pay
- Roth Contributions: 1% to 30% of eligible pay
- After-Tax Contributions: 1% to 21% of eligible pay
The total of your before-tax and/or Roth contributions cannot exceed 30% of your eligible pay. The total of your before-tax, Roth, and/or after-tax contributions cannot exceed 51% of your eligible pay.
Before-tax and Roth contributions are subject to IRS salary deferral annual limits. For 2024, the before-tax and Roth elective deferral contribution limit is $23,000. After-tax contributions are subject to IRS overall contribution annual limits.
If you are age 50 or older, you may make additional “catch-up” and/or “Roth catch-up” contributions each year. For 2024, the catch-up contribution is $7,500.
To find the annual limits, visit http://www.irs.gov.
Gap Inc. adds to your savings
Here’s how it works:
For every dollar you contribute up to 4% of your base pay, Gap Inc. will add a dollar. In other words, when you save 4% of your base pay to your account, Gap Inc. makes it 8%. Don't leave money from Gap Inc. on the table—strive to save at least 4% to "max the match." You can increase your contribution rate at any time.
The company matching contributions are deposited into your GapShare 401(k) Plan with each payroll cycle. If your contributions reach the annual IRS dollar limit before year-end, Gap matching contributions will also stop at that time. In order to maximize company match contributions, you may want to consider spreading out your deferral contributions over the entire calendar year. You can use the Contribution Maximizer Calculator to help you calculate how much you should defer each pay period in order to avoid reaching the IRS annual limit too early and therefore maximize your match contributions.
Save a little more each year with automatic increase.
If you join the plan, you can also choose to enable the T. Rowe Price Automatic Increase service, which helps you save more over time by increasing your contribution by 1% of your base pay each year on the anniversary of your hire date, up to a maximum of 10%.
If you wait for automatic enrollment, you will also be signed up for the automatic increase service as part of your enrollment.
Note: Each year, before your automatic increase takes effect, you will receive a reminder. Since you're always in control of your account, you can choose to change the amount of your annual increase or opt out of this service at any time.
Investments
You can save your way.
Choose the approach that best suits your comfort with investing. Unless you choose otherwise, your contributions will be made on a before-tax basis and automatically invested in an age-based T. Rowe Price Retirement Blend Trust with the target date that is closest to the year you will turn 65. If you have any questions about the investment options in the plan, contact a T. Rowe Price representative at 1-888-GAP-401K (427-4015). For TTY access, call 1-800-521-0325.
Option 1: Age-Based Investments
The Retirement Blend Trusts1 provide:
- A single diversified investment designed for investor’s target retirement age.
- Asset allocation that automatically adjusts throughout a person's working years and retirement.
Depending on your risk tolerance, time horizon, and financial circumstances, you may consider a Retirement Blend Trust with a different target date. Each Retirement Blend Trust offers a diversified asset allocation designed for investors who will turn 65 and retire in or near the stated year. The chart below can help you understand which Retirement Blend Trust available in your plan is closest to the year you will turn 65.
Option 2: Build-Your-Own Portfolio
If you prefer to have more control over choosing and monitoring your investment strategy, you might consider creating your own portfolio. The plan's core investment options include a selection of mutual funds and trusts from which you can choose to create a diversified portfolio that fits your risk tolerance and time horizon. This option also provides you with the ability to adjust your investment mix over time.
Stock investments:
- MFS Institutional International Equity Trust, Class 3A
- T. Rowe Price Small-Cap Value Equity Trust1
- Vanguard FTSE Social Index Fund
- Vanguard Institutional Extended Market Index Trust CIT
- Vanguard Institutional Total International Stock Market Index Trust CIT
- Vanguard Institutional 500 Index Trust CIT
- William Blair Small-Mid Cap Growth Trust, Class 3B
Bond investments:
- TCW MetWest Total Return Bond CIT, D
- Vanguard Institutional Total Bond Market Index Trust CIT
Money market/stable value investment:
- T. Rowe Price Stable Value Common Trust Fund1
What's Next?
Three steps to take right now:
1. Decide if you want to enroll now or wait
To start saving now—set up and secure your online account.
2. Choose your investment and contribution selections
Select how you'd like to invest your money and how much you want to save.
3. Name your beneficiary
Make sure your savings will go to the person or people you choose in the event of your death.
Important information
1The The T. Rowe Price common trust funds (Trusts) are not mutual funds; rather, the Trusts are operated and maintained so as to qualify for exemption from registration as mutual funds pursuant to Section 3(c)(11) of the Investment Company Act of 1940, as amended. The Trusts are established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. Although T. Rowe Price Stable Value Common Trust Fund seeks to preserve the value of your investment at $1.00 per unit, it is possible to lose money by investing in the Trust. For additional information on the common trust funds being offered, including a trust fact sheet, please call T. Rowe Price.
The GapShare Microsite is only a summary. If there is a conflict between the summary and the terms of the plan, the plan governs. Gap Inc. reserves the right to amend the plan at any time.
T. Rowe Price Retirement Plan Services, Inc.
202406-3641689
We're here to help
Your plan website
rps.troweprice.com
Dedicated representatives
1-888-GAP-401K (427-4015)
Mobile solutions
T. Rowe Price Personal® app and more at troweprice.com/mobilesolutions
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