Retirement401(k) Contributions

Employee Contributions

You may elect to contribute from 1% to 75% of your eligible base salary, commissions and bonus on a pre-tax basis, up to IRS limits every year. If you are age 50 or older (by December 31 of the plan year), you are also eligible to make catch-up contributions. You may elect to contribute 1% to 75% of your eligible pay; however, the catch-up contribution when combined with the highest pre-tax contribution election applicable to base salary, commission and bonus cannot exceed 75%.

Company Matching Contributions

Discover matches you dollar for dollar up to 5% of the pre-tax contributions you make to the 401(k) Plan. Here’s how it works:

  • You contribute 1% to 5% of eligible pay
  • Then, Discover matches that contribution dollar for dollar up to 5%

Make sure you are contributing the full 5% so you don’t leave any free money on the table. The more you contribute now, the more you have when you retire.

Company Fixed Contributions

Discover also makes a fixed contribution of 3% of eligible pay to your 401(k) account. You don’t need to contribute your own pay to receive the fixed contribution, but you must be employed on December 31. The fixed contribution is added to your account annually as soon as administratively possible after December 31.

If you leave Discover during the year for certain reasons, including death, total and permanent disability (as determined by Discover’s LTD administrator), retirement on or after reaching age 55 with 5 years of service, or certain terminations due to a reduction in force, you are generally eligible for a prorated fixed contribution.


You are always 100% vested in your own contributions to the plan. Company contributions (fixed and matching) are 100% vested after two years of service.