Money & Protection
401(k) & ESPP
Overview
The American Eagle Outfitters, Inc. Profit Sharing & 401(k) Plan, administered by Fidelity, helps you save for retirement. The Employee Stock Purchase Plan (ESPP) allows you to purchase AEO stock with after-tax dollars through payroll deductions.
401(k): How It Works
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1
You’re automatically enrolled
You’re automatically enrolled on the first day of the month after you meet the requirements* (age 20 and after 30 days of employment for full-time associates; part-time associates must meet a separate service requirement over at least a 12-month period). You’ll be enrolled at a 3% pre-tax contribution rate unless you opt out or make a change. You can contribute between 1% and 50% of your eligible pay, up to IRS annual limits.
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2
AEO adds money to your account
Contribute to get the AEO match. AEO will match 100% of the first 3% of your pay plus an additional 25% of the next 3% of pay that you contribute to the Plan. Save at least 6% to get the full 3.75% match from AEO.
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3
Choose your investments
You can choose from a wide variety of investments that work best for your age, risk tolerance and how long you have until you retire. Fidelity assigns a default investment mix (based on age and estimated retirement date) which can be modified at any time.
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4
Save more when you can
Use features like auto-increase to help you gradually save more. If you don’t make a change, your pre-tax contributions will automatically increase 1% each year until you reach 6%.
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Make changes when needed
You can change your contribution rate or investments anytime during the year.
* Leased associates, non-resident aliens with no U.S.-source income, associates principally employed in Puerto Rico, collectively bargained associates and associates who do not qualify as an “eligible employee” as defined in the most current Plan Document for AEO’s Profit Sharing & 401(k) Plan are not eligible for the Plan.
Types of 401(k) Contributions
Pre-Tax Contributions
These are deducted from your paycheck before income taxes are withheld. You pay taxes on these contributions and earnings when you withdraw the money from the Plan.
After-Tax (Roth) Contributions
These are deducted from your paycheck after income taxes are withheld. You will not pay taxes again on these contributions or on the earnings if you receive the money as a qualified distribution.*
* A qualified distribution means you have your Roth account open for at least five years and you take your distribution after age 59½ or due to death or disability.
Catch-Up Contributions
If you will be age 50 or older in 2025, these contributions help you save more than the regular annual IRS limits as you near retirement.
Rollover Contributions
These are contributions that you move from a retirement plan account with a prior employer or a rollover IRA to the AEO Plan. They allow you to keep all of your retirement savings in one place and avoid paying tax penalties.
Get Paid To Save
AEO will match 100% of the first 3% of your pay plus an additional 25% of the next 3% of pay that you contribute to the 401(k) Plan. Save at least 6% to get the full 3.75% match from AEO. You’re eligible for the Company match after 1 year of service. You’re vested in (e.g., you own) the Company match after 2 years of service.
Name a Beneficiary
Make sure you choose a beneficiary for your 401(k). The person you select will receive the funds in your account if you die. Name your beneficiary at netbenefits.com.
Employee Stock Purchase Plan (ESPP)
The Employee Stock Purchase Plan (ESPP) allows you to purchase AEO stock with after-tax dollars through payroll deductions. This is a way for you to share in the potential future growth and profitability of the Company and an affordable way to begin investing.
How It Works
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1
You enroll
If you’re at least 18 years old, you are eligible to enroll after your 60th day of employment.
To enroll, log on to netbenefits.com or contact Fidelity at 800-544-9354 by the 19th of the month to be effective for the following month’s enrollment. Changes in deductions can also be made at this time each month.
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2
Choose your contribution
You can choose any amount of $5 or more per paycheck.
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3
AEO matches 15% up to the first $100 per pay period
This is a maximum match of $15 per pay period. You are immediately vested in the stock from the AEO match.
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4
You pay any fees
You are responsible for any fees related to the sale of your stock.
Be sure to keep all quarterly statements for your records.
Wealth Planning Services
AEO provides wealth planning services through Fidelity at no cost to you and your family. You don’t need to be enrolled in the 401(k) Plan to take advantage of this benefit.
Wealth planning services include:
- Investment strategy
- Retirement planning
- Income protection (disability, premature death protection, outliving income)
- Asset protection (estate planning, wills, trusts, wealth transfer, charitable giving)
- Family conversations (education, living expenses, assisting parents and relatives)
To find a Fidelity location near you or to schedule a call,
go to Fidelity.com/branchlocator.
FAQs
How much can I save in the 401(k) plan?
You can contribute between 1% and 50% of your eligible pay, up to IRS annual limits.
What does “vesting” mean?
Vesting means you own your retirement money. When you participate in the AEO 401(k) Plan and receive the AEO match, you own (or are vested in) that money two years after participating in the Plan. You always own your contributions to your 401(k) Plan.
Can I withdraw money from my 401(k) Plan?
Yes, but the IRS imposes a penalty on withdrawals made before you reach retirement age. Click here to learn more.
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