YOUR GUIDE TO GETTING STARTED

VMware Inc. 401(k) Savings Plan

Invest in your retirement--and yourself--today, with help from the VMware Inc. 401(k) Savings Plan and Fidelity.

YOUR GUIDE TO GETTING STARTED

Invest some of what you earn today for what you plan to accomplish tomorrow.

Dear VMware Inc. 401(k) Plan employee:

Your Company offers a generous matching contribution, outstanding convenience, and a variety of investment options. Take a look and see what a difference enrolling in the Plan could make in achieving your goals.

If you have not enrolled in the Plan within 30 days of your eligibility date, you will be automatically enrolled in the Plan at a contribution rate of 6% of your pre-tax eligible earnings and your contributions will be invested in the Vanguard Target Retirement Trust I. Please note: if you are a rehire, you will not be automatically enrolled. We encourage you to take an active role in the Plan and choose a contribution rate and investment options that are appropriate for you. If you do not wish to contribute to the the Plan, you must change your contribution rate to 0% within the first 30 calendar days of your eligibility.

Benefit from:

Matching contributions. Your Company helps your contributions grow through a generous employer match on a pretax and/or Roth 401(k) basis, of up to 6% annually--it's like getting "free" money. That's why it makes good financial sense to take advantage of this great benefit today!

Convenience. Your contributions are automatically deducted regularly from your paycheck.

Tax savings now. Your pretax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period. It could mean more money in your take-home pay versus saving money in a taxable account.

Tax-deferred savings opportunities. You pay no taxes on any earnings until you withdraw them from your account, enabling you to keep more of your money working for you now.

Roth After-Tax Contribution. A Roth contribution allows you to make after-tax contributions and take any associated earnings completely tax free at retirement - as long as the distribution is a qualified one.

Regular After-Tax Contribution. Regular after-tax contributions allow you to make additional aftertax contributions to the plan after you have reached the annual IRS pre-tax and Roth contribution limit.

Catch-up contributions. If you make the maximum contribution to your plan account, and you are 50 years of age or older during the calendar year, you can make an additional "catch-up" contribution of $6,000 in 2019.

Portability. You can roll over eligible savings from a previous employer into this Plan. You can also take your plan vested account balance with you if you leave the company.

Investment options. You have the flexibility to select from investment options that range from more conservative to more aggressive, making it easy for you to develop a well-diversified investment portfolio.

Automatic annual increases. Save a little more each year, the easy way -- the Annual Increase Program automatically increases your contribution each year.

Participate in your plan and invest in yourself today.

FAQs

For more information visit or call 1-800-835-5095

Frequently asked questions about your plan.

Here are answers to questions you may have about the key features, benefits, and rules of your plan.

When can I enroll in the Plan?

There is no waiting period. You can enroll in the Plan at any time.

If you have not enrolled in the Plan within 30 days from your eligibility, you will be automatically enrolled in the Plan at a contribution rate of 6% of your pretax eligible earnings.

Based on your date of birth and assuming a retirement age of 65, you will be invested in the Vanguard Target Retirement Trust I, with a corresponding target retirement date. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

We encourage you to take an active role in the Plan and to choose a contribution rate and investment options that are appropriate for you. If you do not wish to contribute to the Plan, you must change your contribution rate to 0% within the first 30 days of your eligibility date. You may change your contribution rate at any time online, or by calling the Fidelity Retirement Benefits Line at 1-800-835-5095.

Please note: if you are a rehire, you will not be automatically enrolled.

How do I enroll in the Plan?

Enroll online at any time at , or by calling the Fidelity Retirement Benefits Line at 1-800-835-5095.

What is the Roth contribution option?

A Roth contribution to your retirement savings plan allows you to make after-tax contributions

and take any associated earnings completely tax free at retirement - as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five tax years after your first Roth 401(k) contribution and after you have attained age 59?, or become disabled or die. Through automatic payroll deductions, you can contribute between 1% and 90% of your eligible pay as designated Roth contributions, up to the annual IRS dollar limits.

Find more information online within the "Library" section of NetBenefits?.

How much can I contribute?

Through automatic payroll deductions, you can contribute between 1% and 90% of your eligible pay on a pretax, Roth 401(k), regular after-tax and/or (if age 50 and older) catch-up basis, up to the annual IRS dollar limits. The Internal Revenue Code provides that the combined annual limit for total plan contributions is 100% of your W2 compensation or $56,000, whichever is less, and if you are age 50 and older, you can make an additional $6,000 in catch-up contributions. Sign up online by accessing the "Contribution Amount" section on NetBenefits?, or by calling the Fidelity Retirement Benefits Line at 1-800-835-5095.

In addition, you can automatically increase your retirement savings plan contributions each year through the Annual Increase Program. To sign up online, go to the "Act" menu on the left hand side of the screen, select "Contribution Amount" and then under the heading "Manage your Contribution Amount" select the link "Annual Increase

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FAQs

Program." If you have any questions, please contact the Fidelity Retirement Benefits Line at 1-800-835-5095.

What is the IRS contribution limit?

The IRS contribution limit for 2019 for pre-tax and Roth contributions is $19,000.

When is my enrollment effective?

Your enrollment becomes effective once you elect a deferral percentage, which initiates deduction of your contributions from your pay. These salary deductions will generally begin within 1 to 2 pay periods after we receive your enrollment information, or as soon as administratively possible.

Does the Company contribute to my account?

The Plan helps your retirement savings grow by matching your contributions on a pretax and/or Roth 401(k) basis. VMware will match your 401(k) contributions dollar for dollar on a per pay period basis up to 6% of your eligible compensation up to a maximum of $2,250 per quarter (up to $9,000 annually). The maximum match will be pro-rated on a quarterly basis for eligible employees who join after Q1.

What is a true-up and how does it work?

A true-up is a 401(k) plan feature that is designed to ensure eligible employees receive their full eligible Company match.

Employees are eligible for up to $2,250 in Company match (on a per pay period basis) for each quarter they are eligible to participate in the Plan and make contributions (pre-tax or Roth). The specific quarterly Company match amount is dollar for dollar on your contributions up to 6% of your eligible compensation per pay period not to exceed a total of $2,250 in each quarter.

If you are eligible but don't contribute during a quarter or contribute an amount that yields less than your maximum eligible quarterly match (because, for example, you contributed the maximum amount early in the calendar year or vary your contributions throughout the

year), you will not receive your full eligible match for that quarter. In such cases, the yearend true-up will provide your full eligible match for the amounts you contributed throughout the plan year, even if you did not receive the maximum Company match for each quarter you were an eligible employee. You must be an eligible employee at the end of the plan year (December 31) to be eligible for the true-up match contributions for that year.

How do I designate my beneficiary?

If you have not already selected your beneficiaries, or if you have experienced a lifechanging event such as a marriage, divorce, birth of a child, or a death in the family, it's time to consider your beneficiary designations. Fidelity's Online Beneficiaries Service, offers a straightforward, convenient process that takes just minutes. To make your elections, click on the "Profile" link, then select "Beneficiaries" and follow the online instructions.

What are my investment options?

To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk tolerance. The many investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan's investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online.

What if I don't make an investment

election?

We encourage you to take an active role in the VMware Inc. 401(k) Savings Plan and choose investment options that best suit your goals, time horizon, and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the Vanguard Target Retirement Trust I with the target retirement date closest to the year you might retire, based on your current age and

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FAQs

For more information visit or call 1-800-835-5095

assuming a retirement age of 65, at the direction of VMware, Inc.

If no date of birth or an invalid date of birth is on file at Fidelity your contributions may be invested in the Vanguard Target Retirement Income Trust I. More information about the Vanguard Target Retirement Trust I options can be found online.

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

What "catch-up" contribution can I make?

If you have reached age 50 or will reach 50 during the calendar year January 1 ? December 31 and are making the maximum plan or IRS pretax contribution, you may make an additional "catch-up" contribution each pay period. The maximum annual catch-up contribution is $6,000. Going forward, catch-up contribution limits will be subject to cost of living adjustments (COLAs) in $500 increments.

When am I vested?

You are immediately 100% vested in your own contributions as well as VMware's matching contributions to the Plan.

Can I convert non-Roth contributions?

A Roth 401(k) in-plan conversion allows you to move money you have saved in an eligible 401(k) plan into a designated Roth account within your 401(k) Plan. The following are two types of in-plan conversions you have access to, provided certain conditions are met:

A Roth in-plan conversion involves taking an available, rollover-eligible distribution from your 401(k) plan and directly rolling it over to a Roth account within the same plan. Examples of eligible assets may include your own contributions, contributions from your employer or assets rolled in from a former employer.

An Expanded Roth in-plan conversion allows for eligible vested plan balances to be rolled over to a designated Roth account within your workplace savings plan, even if those amounts are not currently available for withdrawal.

If you wish to request a transaction or simply speak with a representative about your options, please call Fidelity Investments at 800-835-5095 between 5:30 a.m. and 5 p.m. PT. You must call Fidelity to request a Roth in-plan conversion to convert eligible contributions. A Fidelity Representative can also provide you details regarding setting up automated conversions of monies to your Roth account.

Can I take a loan from my account?

Although your plan account is intended for the future, you may borrow from your account for any reason.

Learn more about and/or request a loan online, or by calling the Fidelity Retirement Benefits Line at 1-800-835-5095.

Can I make withdrawals?

Withdrawals from the Plan are generally permitted when you terminate your employment, retire, reach age 59?, become permanently disabled, or have severe financial hardship, as defined by your plan.

When you leave the Company, you can withdraw contributions and any associated earnings or, if your vested account balance is greater than $5,000, you can leave contributions and any associated earnings in the Plan. After you leave the Company, if your vested account balance is equal to or less than $1,000, it will automatically be distributed to you. However, if your vested account balance is greater than $1,000 but not more than $5,000, you will be notified that your entire vested account balance will be transferred to an Individual Retirement Account (Rollover IRA), unless you request either a cash distribution or a rollover distribution of your choice.

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