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BofA Launches 401k Pay: Comprehensive Solution Simplifies Retirement Income Management

1. Bank of America launches 401k Pay to enhance retirement income management. 2. 401k Pay integrates multiple financial planning resources for employees. 3. The new tool responds to employee demand for retirement planning solutions. 4. Unavailable additional fees for plan sponsors with 401k Pay implementation. 5. Improved financial outcomes can enhance employee productivity and satisfaction.

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Why Bullish?

The introduction of 401k Pay may boost client engagement and retention, enhancing BAC's bottom line. Historically, innovations in banking services have led to increased consumer trust and investor confidence.

How important is it?

The launch of 401k Pay is significant for BAC's business model, appealing to corporate clients and securing long-term relationships with consumers looking to improve their retirement strategies.

Why Long Term?

The structural change in retirement planning may attract stable long-term clients, impacting revenues positively over time, similar to how enhanced digital offerings have driven growth for other banks.

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New Digital Capabilities Modernize Retirement Planning and Payments for Plan Participants , /PRNewswire/ -- Bank of America is launching 401k Pay, a unique new solution designed to simplify and conveniently convert 401(k) account assets into a retirement income. Available November 17 at no incremental charge to the company's corporate plan sponsor or plan participant clients, the new digital solution provides 401(k) recordkeeping, flexible deposit options and advice in a single centralized hub. This enables plan participants to easily set, deposit and track their income throughout retirement. 401k Pay mobile screens "401k Pay was developed hand-in-hand with our corporate clients who wanted to offer their employees a retirement income solution," said Lorna Sabbia, Head of Workplace Benefits at Bank of America. "Including retirement income resources like 401k Pay as part of their workplace benefits offerings provides employers with the opportunity to improve financial outcomes for their employees and can help drive real business results – including helping to improve productivity, employee job satisfaction and retention." Available to Bank of America clients enrolled in the company's employer-sponsored Personal Retirement Strategy program, 401k Pay fully integrates the necessary components of retirement income management, including: Consistent Income Generation: Helps participants determine the retirement income they generate from their 401(k) account by bringing their full financial life into context – including personalized inputs, cost-of-living adjustments, state and federal taxes, and required minimum distributions. Flexible Deposit Options: Offers flexibility in the frequency of payments and choice of deposit accounts, including accounts within or outside of Bank of America. Real-time Recalibration: Provides ongoing income monitoring and tracking, as well as real-time recalibration results for the duration of a participant's retirement, allowing them to adjust their income as their needs and goals change. Building upon the success of the company's Personal Retirement Strategy program, 401k Pay is the next evolution in retirement planning, developed to address the concerns of both employees and employers. The recent 2025 Bank of America Workplace Benefits Report shows two key areas where employees say they need financial wellness resources are retirement education and planning (36%) and learning how to generate income in retirement (33%).1 "Retirement readiness and the ability to plan for income in retirement are top concerns among plan participants," said Tom Matarazzo, Managing Director, Institutional Retirement Advisory Programs & Financial Wellness Solutions. "401k Pay is designed to help directly address participant concerns – from planning how much 401(k) income is needed in retirement to drawing on those funds appropriately – with a digital solution that is a leader in the marketplace." Bank of America Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million consumer and small business clients with approximately 3,600 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts. Personal Retirement Strategy Personal Retirement Strategy is an online investment advisory program sponsored by Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S" or "Merrill") that uses a probabilistic approach to determine the likelihood that participants in the program will accumulate sufficient total assets to achieve their annual retirement income goal. The recommendations provided by Personal Retirement Strategy may include a higher level of investment risk than a participant may be personally comfortable with. Participants are strongly advised to consider their personal goals, overall risk tolerance and retirement horizon before accepting any recommendations made by Personal Retirement Strategy. Participants should carefully review the explanation of the methodology used, including key assumptions and limitations, as well as a description of services and related fees, which is provided in the Personal Retirement Strategy Brochure (ADV Part 2A). It can be obtained through Benefits OnLine® or through the Retirement Benefits Contact Center. Merrill offers a broad range of brokerage, investment advisory and other services. There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the differences, particularly when determining which service or services to select. IMPORTANT: The projections or other information shown in the Personal Retirement Strategy program regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. 401k Pay is a feature of PRS that uses a probabilistic approach to determine the likelihood participants can achieve a retirement income amount. Reporters may contact Don Vecchiarello, Bank of America Phone: 1.980.387.4899  [email protected]MAP #8568812 Footnotes [1] Bank of America 2025 Workplace Benefits ReportWorkplace Benefits is the institutional retirement and benefits business of Bank of America Corporation ("BofA Corp.") operating under the name "Bank of America." Investment advisory and brokerage services are provided by wholly owned non-bank affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill"), a dually registered broker-dealer and investment adviser and Member SIPC. Banking activities may be performed by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A., Member FDIC. Investment products Are Not FDIC Insured          Are Not Bank Guaranteed        May Lose Value  © 2025 Bank of America Corporation. All rights reserved.SOURCE Bank of America Corporation

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