JPMorgan Chase Retirement

Last Updated on February 15, 2024 by Ben

JPMorgan Chase Retirement

JPMorgan Chase is a multinational banking and financial services company. JPMorgan Chase Retirement Services provides retirement planning, investment management, trust, and fiduciary services for JPMorgan Chase’s employees. In this blog post, we will outline JPMorgan Chase Retirement Services and its mission, vision, values, and benefits to those considering JPMorgan Chase for their retirement needs.

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The Retirement Plan

The JPMorgan Chase Retirement Plan is a plan that pays for itself. It also provides a foundation for your retirement income. The plan is closed to new entrants. Before the freeze, people were automatically enrolled in the Retirement Plan once they had worked for one year.

Your retirement plan benefit is the amount of money that it will be worth when you retire. There are two amounts, a cash balance, and an interest credit. The cash balance grows over time with pay credits and interest credits. If you work for JPMorgan Chase and work through December 31, 2019, they will credit your account with a percentage of your allowed Compensation. This can be 3% or 5%, depending on how many years of service you have completed.

You will get more money in your account every month. Your money grows with interest. You can take your benefits with you when you leave JPMorgan Chase.

Participating in the Retirement Plan


You are allowed to participate in this program if you meet the following criteria by December 1, 2018.

  • A U.S. dollar-paid employee who receives a salary or regular pay and for whom JPMorgan Chase pays taxes urged by the Federal Insurance Contribution Acts (FICA).
  • They are regularly scheduled to work 20 hours or more per week.
  • People who work for JPMorgan Chase and any of its subsidiaries can participate in the plan. and
  • After one year of working for JPMorgan Chase, I have completed a total of one year.

Employees who have chosen not to participate in the firm’s pension plan for the United Kingdom are still eligible to participate in this plan.

A person in a work status other than as a common-law salaried employee by his/her employer is someone who falls under the following categories:

  • A contractor or agent is an independent person. They work for themselves, not someone else.
  • Hourly-paid employees who work less than 20 hours a week.
  • Intern; and/or
  • A temporary worker, one who only comes to work a few days a month.

If you are not a common-law salaried employee, you cannot participate in the plan. It does not matter if it is later found out that you were a common-law salaried employee. If someone who works for this company is eligible for a retirement savings plan in their home country or in a different country where JPMorgan Chase also has workers, they cannot use the retirement savings plan here.

When Participation Begins and Cost

In order to be a participant in this Plan, you have to have been eligible before December 1st. This means that if you had one year of total service on the first day of a month, you would automatically be a participant. You did not need to register to engage. You do not have to pay to participate in the Plan. JPMorgan Chase pays for it by making contributions to a trust. The need for these contributions is determined by an actuary, who looks at this every year.


A beneficiary is a person or company you want to receive your money from when you die before you get it. You can name anyone you desire to be your beneficiary. You can change who you want to have received money from your account at any time, but if you do not name a beneficiary, the government will decide.

You can change your beneficiaries by logging on to the Online Beneficiary Designations website. Your most recent designation will remain in effect until you make a change. If your election is rejected, the person you wanted to be your beneficiary before will still get it.

If You Are Legally Married at the Time of Your Death

  • Your spouse will automatically be your beneficiary. But if you want someone else to be your primary beneficiary, then your spouse must give written, notarized consent. This is called an irrevocable agreement.

If You Are Not Married at the Time of Your Death

  • If you have not picked a beneficiary to get your money if you die, the money will go to the people who are in charge of your estate.

Other Considerations for Your Beneficiary Designation

  • If you named your partner as your beneficiary on a Beneficiary Designation Form and then divorced, the person will still be the beneficiary. You need to choose a new person to be the beneficiary if you want someone else. If you remarry, your new spouse is your beneficiary, and the old one is not. You need to fill out a new form if you want that person as your beneficiary.
  • If you name someone as a recipient and you eventually marry, your prior designation becomes disabled, and your new spouse will be your inheritor.
  • As needed by law, if you are married, JPMorgan Chase will notify you when you reach the age of 32 that you have the right to change your beneficiary. This notification will continue until 35 years old. If you are above 35, you will be notified of this. If you were married and named someone who is not your spouse as the beneficiary before age 35, your designation will not be valid when you are age 35 or older. If you are younger than 35, you can change your beneficiary at any time. You just need to get written consent from your spouse.

When Participation Ends

Participation in the Plan finishes when you or your inheritor receives a big payment from this account. You will not get any more money, and interest credits will stop. If you are elected to take an annuity, participation ends when either you or your beneficiary dies.

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How You Earn Benefits

Pay Credits

Once you are a partaker and for each month that you work at JPMorgan Chase (or a subsidiary that has adopted the Plan), they will put money in your bank account. The percentage depends on how much money you earn. It can be up to $100,000 per year.

You get a pay raise when your salary goes up. It depends on how much money you have made in the past year. If you have made more than $100,000, then you do not get any more pay credits that year. No one will get pay credits after December 31, 2019. You can’t use your Eligible Compensation or pay credit service after that date. If you are in a Heritage Retirement Plan, you might be eligible for certain minimum benefits or final average pay formulas.

When Pay Credits End

If you use the money from this plan, it will stop at the end of 2019 or when:

  • Your Allowed Compensation ends;
  • Your occupation with JPMorgan Chase or a participating subsidiary ends for any reason.
  • You are getting money from JPMorgan Chase for being hurt at work, and you have been getting it for more than 18 months. If you want to take the money, tell them now what you want to do with it.; 4
  • If you work for a company that does not offer the same retirement plan, you can ask your boss to leave.; or
  • You die

Interest Credits

Your bank has an interest. You get interest on your money each month depending on how much money you have at the end of the past month and the amount of interest your bank pays. For example, interest credits on your account are calculated by multiplying the account balance from May 31 by the monthly interest credit charge. The annual interest credit charge or any year is based on the yield of a one-year Treasury note from October of last year.

It has a minimum annual interest credit rate of 4.5%. The interest credit rate changes every year. It is currently 4.5%. This means that for 2019, one-twelfth of the annual interest credit rate is equal to the monthly rate, which is 4.5%. Please note that people who have certain types of benefits in their past might have a different interest credit rate for those particular benefits.

If you join a heritage plan, such as the WaMu Pension Plan or the Paymentech Pension Plan, please see the suitable appendix(ces) in this summary plan specifications for more information on interest credit charges. Interest credits finish the last day of the month prior to you starting to receive money from your account. Your cash balance will still get money after December 31, 2019, when the plan freezes.

When You Are Vested

Vesting means that you have not able to forfeit the right to your plan account. If you were an agile participant as of November 15, 2018, then you became 100% vested in the value of your plan. If you become a participant in this Plan between November 15th and December 31st, then when you enter the plan, you become 100% vested. If you are not in the first paragraph, you need to work for three years before getting money from your retirement plan. You cannot get any until that time.

Your benefit can set off 100% vested earlier if:

  • You die while an active employee; or
  • Your job ends because you wanted to leave. You can decide when to end your work. If you worked for JPMorgan Chase and your job ended before November 15, 2018, but you were not fully vested in your savings account with them at the time, they took money from your savings. If you are rehired within five years of quitting, you may be able to get your old job back. You need to follow the rules that say how long it has been since you last worked there.

Paying Taxes on Plan Benefits

Lump-Sum Payments

You will be taxed when you get a lump-sum payment. This is for income taxes. You may also need to pay taxes for state and local (city) taxes. JPMorgan Chase has to take 20% of its money in order to pay the federal government’s share of the tax money.

If you choose to lay hold of a lump-sum payment before age 59½, you will have to pay a 10% early distribution penalty on your income tax return. There are exceptions to the 10% early dispensation penalty. For example, if you quit work during or after the year of your 55th birthday, you will not have to pay that penalty. Please look at page 17 of this booklet for more information about the 10% penalty.

  • Lump-sum payments from a job can be put into a retirement account to save taxes. This includes not having to recompense taxes on the money and not paying the 10% early distribution penalty.
  • If you have plenty of money and want to put it in a Roth IRA, you will need to relay this as taxable income on your taxes. You will get money from the government because of this.
  • Once you turn age 70½, a portion of the money will be taken from your lump-sum payment and given to you. You can’t place it in a bank or invest it.

Additional details are provided in the Special Tax Notice, which will be given to you with your share of the money.

Annuity Payments

If you receive a payment from an annuity, that money is considered income for federal tax purposes.

  • You can choose to have a certain amount of money taken from your payment for taxes.
  • The annuity payment cannot be transferred to an IRA, Roth IRA, JPMorgan Chase 401(k) Savings Plan, or other qualified plans. This includes a 403(b) or government plan.
  • Annuity payments do not need to be paid because they are not considered a distribution (early withdrawal).

Additional Income Tax

If you have a retirement plan and you only get the money when you are older, then if you take it now instead of later, they will charge 10% tax. This additional 10% penalty does not apply if one of the following conditions is met. Your payment can be:

  • This is money that you get because you are over 55 years old. You have to work with your employer for a year before this happens.
  • This means a person can’t work because they are disabled.
  • This money is given to you so they will have it when you die.
  • The company pays you, but it is like the company is paying your spouse.

For more information, see IRS Form 5329. You will find it on the government website. They also send you a notice that tells you about the dispensation process.

Tax Consequences of a Distribution Made Payable to a Beneficiary or Estate

The parts of a lump-sum distribution that are subject to tax can be paid out directly to the beneficiary and will be taxed 20% and the taxes in the state where the person is living. The 10% early dispensation tax does not apply to beneficiaries of an account. If they do not want to owe the tax, beneficiaries can elect to move the money directly into an IRA or other qualified retirement plan.

A lump-sum distribution is a one-time payment. It is money that comes from your company’s pension plan. The money from the lump sum may be taxed at a separate 10% rate unless you choose not to have it taxed this way when completing the form for your company’s pension plan. In addition, any distribution from an account may be subject to other federal or state taxes. Please talk to a financial advisor about the tax aspects of your distribution.


Direct Rollovers

A direct rollover is a way to move a tax-deferred balance from one account to another. This can be used for IRAs or other employer-sponsored plans. A direct rollover makes it so you can:

  • If you have a savings account, make sure to remember the tax advantages.
  • Defer temporarily any taxes you owe. This is to help with the cost of your home.

Direct Rollover to an IRA

If you choose to have your payment set up so that the money is sent directly to an IRA, the money will be paid directly for you and then mailed to your home address. You will need to finish up this process yourself.

Direct Rollover to the JPMorgan Chase 401(k) Savings Plan

If you want to transfer your money from this account to the JPMorgan Chase 401(k) Savings Plan, they will move it directly to your 401(k) Savings Plan account. It will be invested in the way that you have chosen for future contributions. If you do not have a retirement account, your money will go to a retirement account set up for you.

This account is based on your age and when you think you will retire. It cannot be moved back once you move your money from this account to the 401(k) Savings Plan. Once your money is in the 401(k) Savings Plan, you can generally change where it goes every day.

Direct Rollover to Another Qualified Plan

If you want to put money in your new company’s qualified retirement plan, ask the person who manages the plan whether they will accept it. An employer plan is not required to accept a rollover.

If your new job doesn’t have an employer plan, you can put it in an IRA account. If the employer’s plan accepts your rollover, there may be restrictions on when you can get your money. Or they might want permission from your spouse before they give you any money. You need to check with the person who runs your plan. If you want to do a direct rollover, before you take your money, you will need to mail it home and not to the employer’s plan. You are responsible for sending that check back.

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The JPMorgan Chase Retirement is a great way to save for retirement. With this plan, you will have the opportunity to manage your savings and investments so that they work best for you. You can even take advantage of some other benefits like financial planning services or discounts on banking products with other companies in their family of brands. It’s never too early to start saving for retirement!

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