Discover Financial 401(k) Plan

Officially: DISCOVER FINANCIAL SERVICES 401K PLAN

The Discover Financial Services 401(k) Plan had 20,237 active participants and 26,671 total plan participants as of December 31, 2024, with net assets of $3.21 billion. The plan is administered by the Employee Benefits Committee and custodied at The Bank of New York Mellon. The plan features automatic enrollment with a 3% default deferral rate and automatic escalation.

Participants: 27,661 Plan assets: $3,212,387,200 Plan number: 003 Form 5500 plan year: 2024 Last verified: Jun 16, 2026 View Form 5500
Match
8% Match
Vesting
Participants are immediately vested in their contributions. Vesting in employer contributions is 100% after two years of service.
Investment Options
24 funds
Auto-Enrollment
3% pre-tax default contribution rate with automatic escalation for employees who do not opt out
Plan Size
$3,212,387,200

By Zac Murphy, CFA charterholder and CFP professional. Published June 16, 2026. Verified against Form 5500 plan year 2024.

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Fund lineup

Fund Asset Class Type
Dodge & Cox International Stock Fund International Developed Active
DFA Emerging Market Core Equity Fund Emerging Markets Active
PIMCO FOREIGN BOND (U.S. Dollar-Hedged) International Bonds Active
PIMCO Inflation Response Multi-Asset Fund Balanced/Allocation Active
State Street S&P 500 Index Securities Lending Series Fund Class II US Large Cap Index
JPMCB U.S. Analyst Fund CF-A Class US Large Cap Active
Jennison Small-Mid Cap Equity Fund US Small Cap Active
State Street Global All Cap Equity Ex-U.S. Index Securities Lending Series Fund Class II International Equity Index
State Street Russell Small/Mid Cap Index Securities Lending Series Fund Class II US Small Cap Index
State Street U.S. Bond Index Securities Lending Series Fund Class XIV US Bonds Index
State Street Target Retirement Income Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2020 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2025 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2030 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2035 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2040 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2045 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2050 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2055 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2060 Securities Lending Series Fund - Class V Target-date Other
State Street Target Retirement 2065 Securities Lending Series Fund - Class V Target-date Other
Invesco Stable Value Trust Class B1 Stable Value Other
Loomis Sayles Core Plus Fixed Income Fund, Class F US Bonds Active
Mellon EB Temporary Investment Fund II Money Market Active

Why our allocations use only index funds

The actively managed funds in this plan cost more per year than the plan's index funds, which run roughly 0.02% to 0.06%. Decades of research on long-term active fund performance do not support reliable outperformance net of fees, which is why the allocation ideas below may consider using only the low-cost index options.

Employer match

Match summary
100% match on the first 5% of eligible pay, plus a fixed 3% non-elective contribution of eligible pay
Match cap 100% of pay
Effective match rate 5%
Vesting Participants are immediately vested in their contributions. Vesting in employer contributions is 100% after two years of service.
Waiting period Eligible upon hire
$
Contribute this much to capture the full match
100% of your eligible pay, every paycheck.

100% match on the first 5% of eligible pay, plus a fixed 3% non-elective contribution of eligible pay Contributing less than 100% of your eligible pay leaves part of Discover Financial Services's match unclaimed.

What the match is worth at your pay After 1 year of service, contributing 100%
Annual pay Your contribution Employer match Total to 401(k)

Estimates assume a constant salary and the match formula shown above. Your actual match depends on your plan's exact terms.

The cost of contributing only --%

On a $60,000 salary, contributing just half the match threshold would leave about -- in employer match unclaimed each year. Invested over 20 years at a hypothetical 7% annual return, that forgone match could have grown to roughly -- (a hypothetical illustration, not a projection). The match is the highest-return contribution you will make all year.

Sources

  • Plan metadata (employer, participants, assets, plan year): Form 5500 annual return/report, plan year 2024 -- view filing
  • Summary Plan Description (SPD) and fee disclosure (404a-5), where available from the plan administrator.

This page is for educational purposes only and does not constitute investment, tax, or legal advice, nor a recommendation to buy or sell any security. Information is drawn from public Form 5500 filings and plan documents and may be incomplete or out of date. You may consider consulting a qualified professional and confirming all details with your plan administrator before making decisions. Waterfall Planning is not affiliated with Discover Financial Services.

Find your risk profile

Answer 13 questions to see which allocation fits your situation.

Question 1 of 13

Risk assessment methodology based on Grable, J. E., & Lytton, R. H. (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Services Review, 8, 163-181.

Allocation ideas

Five sample mixes built from this plan's funds, from conservative to growth. Take the assessment above to see which one fits your risk profile.

Recommended for you (based on your risk profile)
Conservative
Conservative

Capital preservation with minimal market exposure, built from bonds and stable value.

US equity   International   Bonds   Stable value
State Street U.S. Bond Index Securities Lending Series Fund Class XIV 70%
Invesco Stable Value Trust Class B1 30%
0% stocks / 100% bonds
Recommended for you (based on your risk profile)
Income & A Little Growth
Income & A Little Growth

Mostly bonds with a small stock sleeve for modest growth.

US equity   International   Bonds   Stable value
State Street U.S. Bond Index Securities Lending Series Fund Class XIV 49%
Invesco Stable Value Trust Class B1 21%
State Street S&P 500 Index Securities Lending Series Fund Class II 19%
State Street Global All Cap Equity Ex-U.S. Index Securities Lending Series Fund Class II 8%
State Street Russell Small/Mid Cap Index Securities Lending Series Fund Class II 3%
30% stocks / 70% bonds
Recommended for you (based on your risk profile)
Balanced
Balanced

A classic 60/40 split of stocks and bonds.

US equity   International   Bonds   Stable value
State Street S&P 500 Index Securities Lending Series Fund Class II 39%
State Street U.S. Bond Index Securities Lending Series Fund Class XIV 28%
State Street Global All Cap Equity Ex-U.S. Index Securities Lending Series Fund Class II 15%
Invesco Stable Value Trust Class B1 12%
State Street Russell Small/Mid Cap Index Securities Lending Series Fund Class II 6%
60% stocks / 40% bonds
Recommended for you (based on your risk profile)
Growth & Income
Growth & Income

Stock-heavy with a bond cushion for a long horizon.

US equity   International   Bonds   Stable value
State Street S&P 500 Index Securities Lending Series Fund Class II 52%
State Street Global All Cap Equity Ex-U.S. Index Securities Lending Series Fund Class II 20%
State Street U.S. Bond Index Securities Lending Series Fund Class XIV 14%
State Street Russell Small/Mid Cap Index Securities Lending Series Fund Class II 8%
Invesco Stable Value Trust Class B1 6%
80% stocks / 20% bonds
Recommended for you (based on your risk profile)
Growth
Growth

All stocks for maximum long-term growth potential, with higher short-term volatility.

US equity   International   Bonds   Stable value
State Street S&P 500 Index Securities Lending Series Fund Class II 65%
State Street Global All Cap Equity Ex-U.S. Index Securities Lending Series Fund Class II 25%
State Street Russell Small/Mid Cap Index Securities Lending Series Fund Class II 10%
100% stocks / 0% bonds
Stay on track

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These allocation ideas are educational illustrations built from this plan's available funds and a standard risk-tolerance assessment. They are not personalized investment advice or a recommendation, and risk tolerance is only one factor in an investment decision. You may consider consulting a qualified professional before making changes to your account.