RAI 401k Savings Plan

Plan for your tomorrow, today

Reynolds is committed to helping you thrive throughout your career and in retirement. So that you can plan ahead and save for the future, we provide a 401(k) Savings Plan – administered by Fidelity – that offers contribution and investment options designed to help you reach your financial goals.

To help your savings go even further, Reynolds offers a Matching Contribution.

Your contributions

You can elect to contribute up to 50% of your eligible earnings – which includes base pay and your annual bonus – into your 401(k) account as:

Pre-tax contributions

Deducted from your eligible earnings before taxes have been paid, reducing your taxable income. These are also referred to as “tax-deferred” contributions because you don’t pay tax on your savings until you withdraw them in retirement.

Roth 401(k) contributions

Deducted from your eligible earnings after taxes have been paid. These grow tax free, so you won’t pay additional tax when you make a withdraw in retirement.

After-tax contributions

Deducted from your eligible earnings after taxes have been paid. Because taxes are paid on these amounts today, when you make a withdraw in retirement, you’ll only pay tax on the investment growth.

Any contributions you make to the plan are yours, even if you leave the company.

Update your contributions anytime by logging on to Fidelity NetBenefits or calling the toll-free Retirement Center at 877-902-0256.

Company contributions

Matching Contributions

To help you maximize your money, Reynolds makes a Matching Contribution to your 401(k) account.

We generally match 100% for every dollar you save in pre-tax and/or Roth 401(k) contributions – up to 6% of your eligible earnings. Participants in the RAI Retirement Plan receive a 50% match – up to 6%.

Matching Contributions are made each pay cycle.

Enhanced Contributions

In addition to the 6% match, your company gives you an additional contribution – generally 3% of your base pay and annual bonus. This contribution is made even if you don’t make an Employee Contribution.

Company contributions are 100% yours after just two years of working with Reynolds.

‘The company health benefits and 401(k) match is the best I’ve ever had. I feel Reynolds is invested in your future with their retirement benefits.’

Territory Manager 


Plan limits

The IRS sets annual limits that apply to your 401(k) account (see the chart below for the 2024 limits). You can learn more about these limits in the FAQs below.

Contributions 2024

Pre-tax/Roth 401(k) limit


Catch-up limit


Annual addition limit


Compensation limit


Investment options

The Plan offers different strategies for investing, depending on how involved you want to be in the management of your investments in the Plan.

  • Black Rock Target Date Funds – a diversified, stand-alone investment option that is managed to selected retirement dates. The intent is to invest in the fund dated nearest to your “target retirement year”. The investments within each fund are broadly diversified among stocks and bonds and the portfolio will automatically rebalance to become more conservative as you get closer to retirement.
  • Core investment options – a well diversified line-up representing various asset classes, for people who prefer to build their own investment portfolio.
  • Brokerage Link – allows participants the opportunity to buy and sell individual securities, including stocks, bonds, mutual funds, and money market funds.

Update your investments anytime by logging on to Fidelity NetBenefits or calling the toll-free Retirement Center at 877-902-0256.


Am I eligible to participate?

You’re eligible to participate if you’re on a U.S. dollar payroll and are employed by Reynolds or one of the participating units. If you’re a full- or part-time employee, you can start contributing from your first day with the company.

Seasonal, leased and independent contractors are not able to participate in the Plan.

How do I enroll?

As an eligible new hire, you’ll be automatically enrolled approximately 30 days following your start date with a 6% pre-tax contribution rate.

Unless you choose to opt out, you’ll also be auto-enrolled into the Auto Increase Program. Your contribution rate will increase by 1% on or about March 24 each calendar year (which must be at least six months following the date you joined the Plan). The program won’t increase your contribution rate above 10% (total of pre-tax, Roth and after-tax), unless you choose to.

When you join the Plan, you’ll also be auto-enrolled to contribute 10% pre-tax of your annual bonus payment.

You can update your contributions any time by logging on to Fidelity NetBenefits or calling the toll-free Retirement Center at 877-902-0256.

When will I be 100% vested?

You’re always fully vested in your own contributions (including pre-tax, Roth 401(k), after-tax and/or rollover contributions) and the related earnings.

You become fully vested in your Matching Contributions, Retirement Enhancement Contributions and related earnings upon the earliest of:

  • Two years of employment
  • You reach age 65 (while you’re with the company or any of the participating units)
  • Termination of your employment due to job elimination, disability, or death
  • Termination of the Plan or discontinuation of RAI’s contributions
Can I make a withdrawal as an active employee or borrow money from my 401(k)?

Although the Plan is designed to provide a long-term savings and investment program to help meet your financial needs in retirement, you’re able to make certain withdrawals while you’re an active employee.

Different rules apply depending on the type of contributions you want to withdraw, your age and length of participation at the time of your request.

You can also take a loan from your 401(k) account in line with the rules set out in the Summary Plan Description. The maximum amount you may borrow is the lowest of:

  • 50% of the value of your total vested account (including Company contributions)
  • $50,000 minus your highest outstanding loan balance in the 12 months prior to your loan request

Employees can access the Summary Plan Description via the Thrive Portal to learn more.

How do the IRS limits affect my 401(k)?

Pre-tax/Roth 401(k) limit – This is the maximum amount an employee can contribute on a tax-favored basis in any calendar year.

Catch-up limit – This limits how much “extra” an employee – who is or will be at least age 50 during the calendar year – can contribute on a tax-favored basis in the calendar year. This “extra” amount is often referred to as catch-up contribution.

For example, an employee turning age 50 during 2019 can contribute up to $25,000 to their 401(k) account on a tax-favored basis in 2019.

Annual addition limit – This limits the total amount that can be put into an individual’s account in any calendar year. Although, catch-up contributions are not included for purposes of this limit, all other employee contributions (pre-tax, Roth 401(k) and after-tax contributions) and all company contributions are considered.

Compensation limit – This is the maximum amount of compensation that may be considered as eligible by the Plan. Once an employee has accumulated the eligible compensation limit (base, overtime, annual bonus, etc.) in a single calendar year, they can no longer contribute or receive company contributions in their RAI 401(k) Savings Plan account.


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