employee’s 65th birthday (the default investment option)
until designated investments have been elected by the
All contributions are considered tax deferred under section 401(a)
of the IRC, with the exception of Roth elective deferrals, which
are made on an after-tax basis.
Accounts – Individual
accounts are maintained for each Plan participant. Each
participant’s account is credited with the participant’s
contributions, employer matching contributions, Plan
earnings/losses (based on each participant’s investment elections),
and charged with withdrawals and administrative expenses.
Participants are immediately vested in their contributions and
allocated earnings or losses. The Company matching contributions
and allocated earnings or losses related to matching are vested
after a participant has three years of service with the Company.
The benefit to which a participant is entitled is one that can be
provided from the participant’s vested account balance.
Accounts – At October
31, 2020 and 2019, forfeited nonvested accounts totaled $33
thousand and $39 thousand, respectively. These accounts will be
used to reduce future Company contributions. During the year ended
October 31, 2020, Company contributions were reduced by $150
thousand from forfeited nonvested accounts.
Elections – Participants in the Plan direct the investment
of their account balances into one or more investment funds, which
include the following as of October 31, 2020:
Wells Fargo Core Plus Bond Fund
Deere & Company Common Stock Fund*
Any of 23 Common Collective Trust Funds
*Participants may not invest more than 20% of their future
contributions in the Deere & Company Common Stock Fund or make
an exchange into the Deere & Company Stock Fund that would
result in the participant’s Deere & Company Stock Fund holdings
exceeding 20% after the exchange.
In addition, participants have
access to Fidelity BrokerageLink, which is a self-directed
brokerage account. Through this account, a participant has access
to over 3,000 open-ended mutual funds from a variety of fund
The Plan includes an Employee
Stock Ownership Plan and dividend payout feature whereby
participants may elect to receive dividends on their vested shares
of Company common stock in the Deere & Company Common Stock
Fund in either cash or as a reinvestment in Company common stock.
If no election is made, the default option is reinvestment in
Company common stock.
– Employees who participate in
the Plan are eligible to borrow against their account balances.
Loans must be at least $1,000 and are limited to the lesser of
$50,000 (reduced by the participant’s highest outstanding loan
balance during the immediately preceding one year period) or 50
percent of their vested account balances on the effective dates of
the loans, and the term of a loan may not exceed
five years (ten
years if the loan proceeds are used to purchase a primary
residence). The loans are secured by the balance in the
participant’s account and interest is assessed at a rate which is
determined based on the published prime interest rate. Repayment
for actively employed participants is intended to be made via
payroll deductions. A participant with an outstanding loan at the
time of unpaid leave of absence, retirement, or separation from
service may opt to continue making loan payments through the
financial institution of their choice, which sends payments