SAVINGS
FUTURE ROAST
401(k) Savings Plan
Starbucks Match and Safe Harbor Plan Notice
Dear partner,
Starbucks is committed to offering benefit programs that enhance your daily life and which invest in your financial well-being. Contributing
to the Future Roast 401(k) Savings Plan means you can take advantage of the Starbucks Match and possible tax benefits that could help
your retirement savings accumulate faster. Starbucks wants your financial future, including your retirement to be the best it can be.
IMPORTANT THINGS TO KNOW ABOUT THE STARBUCKS MATCH:
•
It is 100% (dollar for dollar) on the first 5% of eligible pay that you contribute to the Future Roast 401(k) Savings Plan each pay period.
For any pay period in which you don’t make 401(k) pre-tax and/or Roth after-tax contributions, including those pay periods in which
your contributions are suspended because you have reached an IRS or Plan limit, no match will be contributed. The Starbucks Match
remains in place unless changed by Starbucks.
•
It will be deposited into your account under the Future Roast 401(k) Savings Plan along with your contributions each pay period.
•
It is immediately 100% vested, which means that you own the Starbucks Match as soon as it is deposited into your Plan account.
•
To receive the Starbucks Match, you must make 401(k) pre-tax and/or Roth after-tax contributions to the Plan.
ENROLL IN FUTURE ROAST 401(k) SAVINGS PLAN:
Are you newly eligible?
You can enroll online at
netbenefits.com
up to 75 days prior to your eligibility date. See the Questions & Answers
section below for more details about eligibility and how to enroll.
Are you currently participating or eligible?
Enroll or make a change online at
netbenefits.com
by 1 p.m. Pacific Time on a Friday to have
your election apply on your next weekly or bi-weekly Friday paycheck. To ensure that the election applies to your first paycheck in 2022,
enroll or update your contribution election between Saturday, December 25, 2021 and 1 p.m. Pacific Time on Friday, December 31, 2021.
If you currently have elected to make 401(k) pre-tax contributions and/or Roth after-tax contributions, those elections will stay in place
unless you make a change.
LEARN MORE:
•
Read the Questions and Answers section below and the attached Safe Harbor Plan Notice.
•
Go to
netbenefits.com
, choose Future Roast 401(k) and access Plan Information and Documents.
•
Go to Partner Hub and choose the Benefits tab, then Stock & Retirement Plans, then Future Roast 401(k) for Plan details.
Thank you,
Savings, Starbucks Corporation
FUTURE ROAST 401(k) SAVINGS PLAN - WHAT IT MEANS TO YOU
By enrolling in the Future Roast 401(k) Savings Plan, you can elect to save part of your eligible pay as 401(k) pre-tax and/or Roth after-tax
contributions. Plus, Starbucks matches a portion of your contributions each pay period.
QUESTIONS & ANSWERS
1
WHAT IS THE STARBUCKS MATCH?
The Starbucks Match (also referred to as Safe Harbor Match) equals 100% of the first 5% of eligible pay that you contribute each pay
period as 401(k) pre-tax (before federal, and in most cases state, income tax) and/or Roth after-tax contributions. The Starbucks Match is
contributed to your account each pay period along with your contributions and is immediately 100% vested.
HOW CAN I TAKE FULL ADVANTAGE OF THE STARBUCKS MATCH?
•
First, you need to contribute to the Future Roast 401(k) Savings Plan. The Future Roast 401(k) Savings Plan is generally open to all partners
on U.S. payroll who are employed by Starbucks and its participating affiliates, who are at least age 18 and have completed 90 days of
service. Enroll online at
netbenefits.com
or by calling Fidelity Investments at (866) 697-1048 or (800) 587-5282 (Spanish line).
•
For many participants, aggressively front-loading contributions so that you hit your IRS dollar maximums early in the calendar year may
result in less overall Starbucks Match credited to your account.
•
To get the full 5% Starbucks Match, contribute at least 5% of your eligible pay each pay period as 401(k) pre-tax and/or Roth after-tax
contributions to the Future Roast 401(k) Savings Plan.
•
Try not to skip any pay periods during the year (you must contribute to get the Starbucks Match).
•
If you intend to contribute up to the IRS limit or if you are highly compensated, you should carefully monitor your contributions during
the year. Note that for any pay period in which you do not make any 401(k) pre-tax and/or Roth after-tax contributions, as well as pay
periods in which your contributions are suspended for any reason, including because you hit a Plan or IRS limit, no Starbucks Match will
be made to your account.
Regardless of whether you make 401(k) pre-tax or Roth after-tax contributions, the Starbucks Match is pre-tax money and will be
contributed to your Safe Harbor Match account.
The IRS compensation (eligible pay) limit for 2022 is
$305,000
(for 2021 it was $290,000) – your eligible pay in excess of this limit will
not be taken into account when determining the amount of Starbucks Match.
IF I ENROLL IN THE FUTURE ROAST 401(k) SAVINGS PLAN OR MAKE A CHANGE TO MY EXISTING CONTRIBUTION RATE, WHEN
WILL IT SHOW UP ON MY PAYCHECK?
If you enroll in the Plan or make a change to your existing 401(k) pre-tax and/or Roth after-tax contribution rate prior to 1 p.m. Pacific Time
on the Friday immediately preceding your next paycheck, your enrollment or changes will generally be effective on your next regular
paycheck, as long as you have met the Plan’s eligibility requirements.
To enroll or make a change that will be effective as of the first paycheck in January 2022, you must enroll or make the change between
Saturday, December 25, 2021 and 1 p.m. Pacific Time on Friday, December 31, 2021.
WHAT IS THE MAXIMUM THAT I CAN CONTRIBUTE TO THE FUTURE ROAST 401(k) SAVINGS PLAN FOR CALENDAR YEAR 2022?
All eligible partners can contribute from 1% to a maximum of 75% of eligible pay each pay period up to
$20,500
annually (or up to
$27,000
for partners who will be at least age 50 during 2022). This dollar limit applies to your combined 401(k) pre-tax and Roth
after-tax contributions as well as your contributions to all other 401(k) and 403(b) plans that you participate in during the calendar year.
This dollar limit does not apply to any employer contributions, such as the Starbucks Match.
WHY SHOULD I CONSIDER CONTRIBUTING TO THE FUTURE ROAST 401(k) SAVINGS PLAN INSTEAD OF JUST SAVING MY
MONEY IN A REGULAR SAVINGS ACCOUNT?
Contributing to the Future Roast 401(k) Savings Plan means you can take advantage of the Starbucks Match, tax savings and other
provisions that may help your savings accumulate faster. The example below illustrates how a $51 reduction in take home pay can result
in a $110 contribution to a partner’s 401(k) Plan account:
401(k) PRE-TAX EXAMPLE:
PAYCHECK IMPACT
401(k) PLAN ACCOUNT
Partner has eligible pay of $1,000 per paycheck
$1,000
Partner elects to contribute 6% of eligible pay as 401(k) pre-tax contribution
– $60
$60
Federal income tax withholding savings (assuming 15% tax withholding rate)
9
Net impact to paycheck
– $51
Starbucks Match (maximum 5% match)
$50
Total deposit to partner’s 401(k) Plan account
$110
This is an example only and does not comment on any applicable state income tax withholding. Your actual results may be different. You should consult your
personal tax and financial planning advisors for more details and to address your specific needs.
DO I NEED TO TAKE ANY ACTION?
Although it is not necessary to take any action at this time, you have choices to consider. If you are not yet eligible or you haven’t yet
elected to contribute to the Future Roast 401(k) Savings Plan, you can enroll starting approximately 75 days prior to becoming eligible.
Payroll contributions will start within one to two pay periods after the later of the date you enroll or the date you meet the Future Roast
401(k) Savings Plan eligibility requirements.
Current participants can modify their contribution elections any time and changes will be effective within one to two paychecks. Enroll or
modify your elections online at
netbenefits.com
or call Fidelity at (866) 697-1048 or (800) 587-5282 (Spanish line).
WHAT FUNDS SHOULD I INVEST IN WITHIN THE FUTURE ROAST 401(k) SAVINGS PLAN?
Starbucks cannot provide investment advice. Each individual has his/her own unique investment time horizon and risk tolerance. It is
important for you to review the prospectus, the descriptions of the investment funds offered within the Future Roast 401(k) Savings
Plan, and all other available materials and resources to help you make well informed choices. You can access this information and
tools for helping you determine the right investment mix based on your needs by logging on to
netbenefits.com
. Under Retirement
Plans, then
Future Roast 401(k),
click on
Investment Performance and Research
under
Quick Links.
In addition, professional
management of the investment of your 401(k) Plan account is available through Fidelity® Personalized Planning & Advice. Contact
Fidelity at (866) 811-6041, option 1, or access more information by logging on to
netbenefits.com/plan
.
FUTURE ROAST 401(k) SAVINGS PLAN RESOURCES
For questions about the Future Roast 401(k) Savings Plan, to enroll or modify your current elections, or to access Plan information and
materials including Plan Highlights and the Summary Plan Description:
•
Contact a Fidelity service representative at (866) 697-1048 (or (800) 587-5282 for a Spanish-speaking representative),
M–F from 5:30 a.m. to 9 p.m. Pacific Time.
•
Log in to
netbenefits.com
.
1
Every effort has been made to communicate the benefit information in this Match and Safe Harbor Plan Notice (including the Questions and Answers section and the attached Safe Harbor Plan Notice) clearly and in easily
understandable terms. If there is any discrepancy between the information in this Notice and the legal Starbucks Future Roast 401(k) Savings Plan and trust documents, the terms of the legal Plan and trust documents always
govern. Starbucks intends to continue the Starbucks Future Roast 401(k) Savings Plan indefinitely, but reserves the right to amend or terminate the Plan at any time and for any reason. For additional information, you should also
review the Starbucks Future Roast 401(k) Savings Plan Summary Plan Description and any Summaries of Material Modifications, which are available by logging on to
netbenefits.com
(under Future Roast 401(k), click on “Plan
Information & Documents” under “Quick Links”).
Este folleto contiene un resumen en inglés de los derechos y beneficios de su plan conforme al Plan de Ahorro 401(k) Starbucks Future Roast. Si tiene problemas para entender cualquier apartado de este folleto, envíe sus
preguntas a
Savings@starbucks.com
. También puede escribirle a la Sra. Lisa Coutts, Savings and Retirement Plan Administrator, Starbucks Corporation, 2401 Utah Ave S. Ste 800, MS: HR-3, Seattle, WA 98134. Asimismo,
contacto al despacho de la administradora del plan al
Savings@starbucks.com
.
STARBUCKS FUTURE ROAST 401(k) SAVINGS PLAN
SAFE HARBOR PLAN NOTICE
November 15, 2021
This Safe Harbor Plan Notice provides important information relating to your
participation in the Starbucks Future Roast 401(k) Savings Plan (called “Future
Roast 401(k)” in this Notice) for the 2022 calendar year. This Notice is designed to
satisfy the IRS notice requirements applicable to safe harbor 401(k) plans. You
should consider this information as you decide how much (if any) of your eligible
pay you wish to contribute to the Future Roast 401(k) for the 2022 calendar year.
FUTURE ROAST 401(k) ELIGIBILITY REQUIREMENTS
Partners on Starbucks or a participating affiliate’s U.S. payroll who are at
least age 18 and have completed 90 days of service are generally eligible to
participate in the Future Roast 401(k). Partners will be able to enroll online at
netbenefits.com
or by calling Fidelity Investments at (866) 697-1048 or (800)
587-5282 (Spanish line) starting approximately 75 days prior to becoming
eligible. Payroll contributions will start within one to two pay periods after the
later of the date you enroll or the date you become eligible.
All employees on U.S. payroll who are employed by Starbucks and its
participating affiliates are eligible except for the following: “Leased Employees”
(as defined by the Future Roast 401(k) document), employees whose
employment is covered by a collective bargaining agreement (unless the
bargaining agreement provides for participation in the Future Roast 401(k)),
nonresident aliens earning no U.S. source income, employees assigned to
work overseas or in a foreign country permanently or indefinitely, and
individuals who are not treated by Starbucks as employees, i.e., independent
contractors and individuals leased from third parties, even if later determined
to be employees.
401(k) PRE-TAX AND ROTH AFTER-TAX CONTRIBUTIONS
You may voluntarily elect to make 401(k) pre-tax contributions and/or Roth
after-tax contributions to Future Roast 401(k) after you meet the eligibility
requirements as stated above. Once eligible, you may contribute from 1% to
75% of your eligible pay each pay period as 401(k) pre-tax and/or Roth after-tax
contributions to the Future Roast 401(k). Although Roth after-tax contributions
can be made to the Future Roast 401(k), regular after-tax contributions cannot.
Your total 401(k) pre-tax and/or Roth after-tax contributions may not exceed
the annual IRS limit. This limit is
$20,500
for calendar year 2022 or
$27,000
if you will be age 50 or older any time in calendar year 2022.
For purposes of your contribution election and the Starbucks Match described
below, “eligible pay” generally means your total cash compensation paid
through Starbucks or a participating affiliate’s U.S. payroll each pay period
(including your 401(k) pre-tax and/or Roth after-tax contributions to Future
Roast 401(k) and salary reductions under a cafeteria or transportation fringe
benefit plan), but excluding the following: sign-on bonuses, imputed and
other tips except for tips paid via payroll, most allowances, gifts and awards,
severance pay, child daycare scholarships, short-term and long-term disability
income, CUP Fund payments, amounts paid after the first pay period following
severance from employment, non-U.S. source income, differential wage
payments paid to employees in qualified military service, and items listed in
Treasury Regulation Section 1.415(c)-2(c), and any amounts that would not be
payable in cash by Starbucks. If you participate in the Management Deferred
Compensation Plan (“MDCP”), your distributions from the MDCP, if any, are
also excluded.
In addition, eligible pay for a calendar year cannot exceed the IRS limit for that
year. The limit for the 2022 calendar year is
$305,000
.
You may change the percentage, suspend or restart your 401(k) pre-tax
contributions and/or Roth after- tax contributions at any time by contacting
the Future Roast 401(k) service provider, Fidelity Investments, either by
telephone at (866) 697-1048 or (800) 587-5282 (Spanish line), or by accessing
netbenefits.com
. Such change will generally be effective one to two pay
periods after your change is received by Fidelity.
Your 401(k) pre-tax contributions will be credited to your Partner 401(k)
account and your Roth after-tax contributions will be credited to your Partner
Roth account. You are immediately 100% vested in your 401(k) pre-tax and/or
Roth after-tax contributions and associated earnings.
SAFE HARBOR MATCHING CONTRIBUTIONS
If you elect to make 401(k) pre-tax and/or Roth after-tax contributions to
the Future Roast 401(k), Starbucks will contribute a safe harbor matching
contribution (called the “Starbucks Match” in this Notice) equal to 100% of
the first 5% of eligible pay that you contribute each pay period. Regardless
of whether you make 401(k) pre-tax or Roth after-tax contributions, the
Starbucks Match is pre-tax money and will be contributed to your Safe Harbor
Match account. You are immediately 100% vested in the Starbucks Match and
associated earnings.
Example: Assume you earn monthly eligible pay of $3,000 and you elect to
contribute 10% of your monthly pay ($300 a month). You would receive a
total Starbucks Match of $150 per month. Your Starbucks Match would
consist of a dollar-for-dollar match on the first 5% of eligible pay that you
contribute, or $150 (100% match x [5% x $3,000] = $150). If instead, you
contributed only 3% of your monthly eligible pay (or $90), you would
receive a dollar-for-dollar match of $90.
You should consider making 401(k) pre-tax and/or Roth after-tax contributions
totaling at least 5% of eligible pay each paycheck to maximize the Starbucks
Match.
You are immediately 100% vested in the Starbucks Match and associated
earnings. Starbucks may amend the Future Roast 401(k) during 2022 to reduce
or suspend the Starbucks Match. If Starbucks decides to do this, Starbucks will
notify you at least 30 days before the effective date of the change.
DISCRETIONARY PROFIT-SHARING CONTRIBUTIONS
In addition to the Starbucks Match discussed above, Starbucks may choose to
make (or not make) profit-sharing contributions to the Future Roast 401(k) for
certain eligible partners with respect to any calendar year. Any profit-sharing
contribution is solely at Starbucks discretion. If a profit-sharing contribution is
approved for a calendar year, more information will be provided.
DIRECTION OF INVESTMENT
You direct the investment of all your accounts in the Future Roast 401(k) among
the investment funds offered within the Future Roast 401(k). You may change
your investment allocation or transfer between investment funds at any
time (subject to frequent trading restrictions, if any) by contacting the Future
Roast 401(k) service provider, Fidelity Investments, either by telephone at
(866) 697-1048 or (800) 587-5282 (Spanish line), or online at
netbenefits.com
.
THE IMPORTANCE OF DIVERSIFYING YOUR
RETIREMENT SAVINGS
To help achieve long-term retirement security, you should give careful
consideration to the benefits of a well-balanced and diversified investment
portfolio. Spreading your assets among different types of investments can
help you achieve a favorable rate of return, while minimizing your overall risk of
losing money. This is because market or other economic conditions that cause
one category of assets, or one particular security, to perform very well often
cause another asset category, or another particular security, to perform poorly.
If you invest more than 20% of your retirement savings in any one company or
industry, your savings may not be properly diversified. Although diversification
is not a guarantee against loss, it is an effective strategy to help you manage
investment risk.
In deciding how to invest your retirement savings, you should take into account
all of your assets, including any retirement savings outside of the Future Roast
401(k). No single approach is right for everyone because, among other factors,
individuals have different financial goals, different time horizons for meeting
their goals, and different tolerances for risk.
It is also important to periodically review your investment portfolio, your
investment objectives, and the investment options under the Future Roast
401(k) to help ensure that your retirement savings will meet your retirement
goals. Visit the Department of Labor website at https://www.dol.gov/agencies/
ebsa/laws-and-regulations/laws/pension-protection-act/investing-and-
diversification for information on individual investing and diversification.
LOANS
While you are actively employed, a loan can be made from your Future Roast
401(k) accounts based on the Future Roast 401(k) loan policy and guidelines.
Information provided by Starbucks. Fidelity is not responsible for contents. © 2022 Starbucks Coffee Company. All rights reserved.
3.EPCP21053413.105
IN-SERVICE WITHDRAWALS
You may request a withdrawal from your rollover accounts (including any
pre-tax rollover account, Roth after-tax rollover account and tax-exempt TSP
rollover account) while you are actively employed, limited to one withdrawal
from each rollover account in any calendar year.
If you are age 59½ or older and actively employed by Starbucks, you may
request one withdrawal per calendar year from your pre-tax accounts and
one withdrawal per calendar year form your Roth after-tax account. You
will not be taxed on distributions of your Roth after-tax contributions. The
earnings on your Roth after-tax contributions will also not be taxed if they
are part of a “qualified distribution,” which means the distribution is taken
after a five-year period and on or after your attainment of age 59½, disability
or death. The five-year period begins with the calendar year in which you first
made Roth after-tax contributions to the Future Roast 401(k) (or to another
employer plan if such amount was rolled over into the Future Roast 401(k)) and
ending on the last day of the calendar year that is five years later. There are no
early withdrawal penalties for withdrawals taken on or after age 59½. Active
partners who have attained at least age 59½ may also request a hardship
withdrawal. The standard hardship withdrawal criteria and restrictions
will apply.
Withdrawals prior to attaining age 59½ while you are actively employed are
only permitted for hardship (based on the Future Roast 401(k) guidelines) or if
you are performing qualified military service while on active duty for more than
30 days. Active participants who are under age 59½ and who take an in-service
withdrawal of any pre-tax amounts are generally subject to a 10% early
withdrawal penalty, federal and, if applicable, state income taxes.
RECONTRIBUTIONS OF CARES ACT WITHDRAWALS
The CARES Act allowed partners who were qualified individuals adversely
affected by COVID-19 to take distributions of up to $100,000 from their Future
Roast 401(k) accounts before December 31, 2020. If you took such a CARES Act
withdrawal, you can recontribute the withdrawal back to Future Roast 401(k)
if you are an active partner or, if you are separated, to an IRA or your new
employer’s eligible retirement plan (if allowed for in that plan) within three
years from when you took the withdrawal.
TERMINATION WITHDRAWALS
You can request payment of your account balances after termination of
employment with Starbucks for any reason. If you are separated and have an
account balance greater than $1,000, you can elect an unlimited number of
withdrawals each year. Your withdrawal can be taken as:
1) a lump sum cash payment,
2) a roll over into another eligible retirement plan or individual
retirement account,
3) partial payments as requested from time to time, or
4) systematic withdrawal (installment) payments limited to your
life expectancy at the time payments commence.
Termination withdrawal requests can be changed or stopped at any time with
the exception of systematic withdrawal (installment) payments. Once started,
the amount of your installment payment can be increased, but it can not be
decreased or stopped. You retain the ability to choose a full payout as a lump
sum or rollover even after initiating installment payments. You generally must
pay federal (and in most cases, state) income taxes on your withdrawals from
the Future Roast 401(k) unless the withdrawal is rolled over or is a “qualified
distribution” of Roth after-tax contributions. You may also be subject to a 10%
early withdrawal penalty if you are younger than age 59½ at the time of the
withdrawal.
EMPLOYER’S RIGHT TO TERMINATE FUTURE ROAST 401(k)
Pursuant to the terms of the Future Roast 401(k) document, the employer has
the right, at any time, to terminate the Future Roast 401(k). Termination of the
Future Roast 401(k) will result in the discontinuance of all contributions to
the Future Roast 401(k) (including the Starbucks Match) with respect to any
eligible pay you receive after the effective date of termination. Termination of
the Future Roast 401(k) will not affect your right to receive any contributions
you have accrued as of the effective date of the termination.
FOR FURTHER INFORMATION
Please refer to your U.S. Benefits Plan Description and the current Future Roast
401(k) Summary Plan Description for further details regarding your rights
under the Future Roast 401(k). This Notice is not intended to, nor should you
construe it as, modifying any aspect of the Future Roast 401(k) document and
Summary Plan Description. In the event of any conflict between these
documents, the terms of the Future Roast 401(k) document will control.
If you have questions about the Starbucks Match or your rights or obligations
under the Future Roast 401(k) or if you want to enroll or change your
contributions or need a copy of the Summary Plan Description, please:
•
Contact a Fidelity service representative at (866) 697-1048 or (800) 587-5282
(Spanish line), weekdays from 5:30 a.m. to 9 p.m. Pacific Time, or
•
Log on to
netbenefits.com
at any time
If you have additional questions, you may:
•
Write to: Starbucks Corporation
c/o Savings Department
2401 Utah Avenue South, Mail Stop S-HR3
Seattle, WA 98134
(866) 504-7368
•
Or contact the Starbucks savings team at
savings@starbucks.com
