RBC U.S.A. RETIREMENT AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. |
DESCRIPTION OF THE PLAN |
The following description of the RBC U.S.A. Retirement and Savings Plan (the Plan) is provided for general information purposes
only. Participants should refer to the plan document for complete information regarding the Plans definitions, benefits, eligibility, and other matters.
General The Plan is a defined contribution plan covering all eligible employees for RBC Wealth Management, RBC Capital
Markets, the U.S. office of Royal Bank of Canada, and RBC Bank (Georgia) (the RBC Companies or the Company) in the United States. The Plan Sponsor is RBC Holdco. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (the Code). Fidelity Investments Institutional Operations Company, Inc. is the Plans Administrator and Fidelity Management Trust Company
is the Plans Trustee. The USA Pensions and Benefits Committee (the Committee) provides oversight of the plan.
Eligibility Employees may make pretax and after-tax contributions to the Plan upon
hire. Employees receive employer matching contributions beginning the first of the month following one year of service.
Contributions Employees may contribute up to 50% of their compensation to the Plan on a pretax basis or on an after-tax basis to their Roth 401(k) account. In addition, employees may also contribute up to 5% of their compensation to the Plan on an after-tax basis.
Participant contributions are subject to maximum amounts as described in the Code, which was $22,500 for the 2023 plan year. Employees who have attained age 50 before the end of the plan year may also elect to make pretax and/or Roth 401(k) catch-up contributions up to 100% of compensation. Catch-up contributions were subject to an annual limit of $7,500 under Internal Revenue Service (IRS)
regulations during 2023. Catch-up contributions are not subject to RBC Companies matching contributions. Employees may also contribute to the Plan by making rollover contributions, which represent
distributions from other qualified plans.
A fixed matching contribution is paid by the RBC Companies throughout the year as eligible
employees make deferrals that are equal to one dollar for every dollar of a participants pretax contribution or after-tax Roth 401(k) contribution, up to a maximum of 6% of participant
compensation. All matching contributions are invested in accordance with participant investment elections.
Employees who have not enrolled
in the Plan at the time of hire are automatically enrolled for a 6% pretax contribution. If no investment elections are in place, the contribution is allocated to the appropriate JPMorgan Smart Retirement fund based on a normal age 65
retirement. Employees may opt out of this automatic enrollment. Additionally, employees may request a refund of an automatically enrolled amount if they make that request within 90 days of the initial contribution and the related company match
would be forfeited.
Employee and employer contributions are limited to the extent necessary to comply with the applicable sections of the
Code. Financial Consultants, Financial Advisors, Branch Manager, Regional Directors, or Complex Directors employed by RBC Capital Markets, LLC, are limited to $1,500 fixed matching contributions. After-tax
contributions (excluding Roth 401(k)) and catch-up contributions are not eligible for fixed matching contributions.
Participant Accounts Individual accounts are maintained for each Plan participant. Each participant account is credited with
the participants voluntary pretax and/or after-tax contributions, Roth 401(k) after-tax contributions, the RBC Companies fixed matching
contributions, fund earnings and/or losses, and charged with withdrawals and an allocation of fund losses.
Investments
Participants may direct and redirect the balance of their account and contributions into any of the Plans investment options, including the Fidelity Brokerage Link investment option. The Fidelity Brokerage Link investment is a self-directed
mutual fund brokerage account, which participants may choose to invest in a variety of eligible registered mutual funds. Investment elections may be changed by the participant daily. Participants may change the investment of accounts or portions of
accounts, including the RBC Common Stock dividends, from the RBC Stock Fund (the Companys unitized common stock fund which invests in RBC shares) into one or more other investment funds. The various investment options available to the
participants include the RBC Stock Fund, mutual funds including target date funds, common collective trusts and Fidelity Brokerage Link.
Vesting Participants are immediately vested in their pretax contributions, Roth 401(k) contributions, after-tax contributions, and rollover contributions, plus earnings thereon. Participants are 25% vested in the fixed employer matching contributions after two years of service and vest in 25% increments per year
thereafter. All participants are fully vested after five years of service. In addition, all participants become fully vested upon death or disability, attaining retirement age, or if the Plan is terminated.
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