Macy’s, Inc. | SAVE ACTIVELY NEWSLETTER LIVING Fall 2017 ... · Macy’s, Inc. retains the right to reduce or suspend the safe harbor matching contribution under the Plan. If Macy’s,

How Do You Stack Up? When it comes to financial well-being are you a whiz kid or are you a beginner? Test your knowledge with this short quiz.

inside | Fall 2017

How Do You Stack Up?

HSA Your Way

401(k): Save Early & Often

Make an “Emergency” Plan

Stay on Track

Need Financial Guidance?

Answers on the back >

Macy’s, Inc. | SAVE ACTIVELY NEWSLETTER

LIVING YOUR BEST LIFE

3 4

2 What percentage of households are at risk of living below their current standard of living during retirement?

52%

15%

30%

What percent of Americans can’t cover a $1,000 emergency without using a credit card?

60%

75%

36%

1 Your Health Savings Account (HSA) can be used for:

Saving and investing

Qualified medical, dental, vision or prescription expenses

Both

Which benefit may provide you income if you are unable to work?

Life insurance

Short-term disability insurance

My Time Off (MTO)

HSA Your WayA Health Savings Account (HSA) is a triple tax-advantaged way to pay for and save toward future medical expenses. Below are four key benefits to an HSA:

Want to save more? Call HR Services at 1-800-234-MACY (6229) anytime to increase your contribution.

There If You Need It. A HSA must be used toward eligible medical, prescription, vision and dental expenses. It’s there if you need it, otherwise, consider saving and investing the funds.

Save Up to Your Deductible. It’s important to make regular contributions to your account so you’ll have enough savings to cover your annual deductible in case you or a covered family member has a health care emergency.

21 Invest to Build Savings. Once your balance reaches $2,000, you may invest your savings and grow your account with the potential earnings.

3 Use in Retirement. Health care expenses tend to get larger as we age. Build up your HSA retirement nest egg and use the dollars for medical and premium expenses when you turn age 65.

4

ACT2017

Answer Key: 1 Both; 2 52%; 3 60%; 4 Short-term disability insurance

*The company match percentages stated above reflect the Macy’s, Inc. national 401(k) Plan. Associates covered by a collective bargaining agreement may receive a lower match rate than the amounts indicated. Contact your union representative for more information.

**Macy’s, Inc. executives are automatically enrolled in short-term disability insurance. Optional short-term disability insurance is not available in Puerto Rico.

Need Financial Guidance? Do you need help picking financial goals or do you want answers to your financial questions? You aren’t on your own.

Visit Merrill Lynch’s Personal Financial Journey to access a free guided resource tailored to provide what you need.

Visit https://baml.bankofamerica.com/personalfinancialjourney/#/ml or visit Benefits OnLine® to get started.

401(k): Save Early & Often52% of Americans are not contributing enough to their 401(k) Plan. Financial experts recommend saving between 10%-15% of your income for retirement. Luckily, Macy’s, Inc. can help you get there by:

• Increasing automatically. You may opt-in to automatically increase your 401(k) Plan contribution annually. You choose a percentage increase — 1%, 2%, 5% — that works for you.

• Maxing your match. When you contribute 6% of your pay to your 401(k) Plan, the company will match 3.5%*. That’s a total contribution of 9.5% to your 401(k) Plan account each year.

Visit BenefitsOnLine®, the Macy’s, Inc. 401(k) Plan website, through the Save Actively page of My IN-SITE or at www.benefits.ml.com to review and update your elections.

Make an “Emergency” PlanDon’t be one of the 60% of Americans who use credit cards to pay for $1,000 in emergency spending. An emergency fund helps prevent going into debt for expenses that can’t be avoided. Getting started may feel difficult, but it doesn’t have to be.

• Work on short-term goals. Save an amount over a short period of time. When you save $83 a month over the course of a year, you will set aside $1,000 in emergency savings.

• Save your savings. As a Macy’s, Inc. Associate, you have access to discounts on home and auto insurance, cellular provider plans and tax services. Save the money you did not spend in your emergency fund. Short-term goals turn into long-term success. Don’t spend the $1,000. Keep saving.

• Make it automatic. Take advantage of the Macy’s, Inc. direct deposit to set up automatic payments.

Create an emergency fund and set up direct deposit on the My Pay page of My IN-SITE.

Stay on Track Accidents happen! Macy’s, Inc. offers most Associates short-term disability insurance to keep you covered. Short-term disability insurance ensures you have income when you cannot work and aren’t earning a paycheck. Don’t rack up credit card debt or borrow money to pay bills.

Hourly Associates may enroll in short-term disability insurance at any time.** Call HR Services at 1-800-234-MACY (6229) to enroll and enjoy financial health no matter what life throws at you.

Save Actively NEWSLETTER

Fall 2017

401(k) Safe Harbor Plan Notice to Employees

Safe Harbor Matching Contribution

To: Eligible Employees

From: Plan Administrator of the Macy’s, Inc. 401(k) Retirement Investment Plan

Plan Sponsor: Macy’s, Inc.

Date: November 20, 2017

Making or changing your deferral election

As a participant in the Macy’s, Inc. 401(k) Plan, you may elect to defer to the Plan a portion of your

compensation. Macy’s, Inc. will contribute this amount (your “deferral contributions”) to the Plan. To defer a

portion of your compensation, you must either:

1. Change your contribution by logging on to your Benefits OnLine account at www.benefits.ml.com

or via My IN-SITE or;

2. Take no action to halt your auto-enrollment in the Plan, if you qualify for this feature.

For the Plan year you become eligible to make deferral contributions: (1) you may make a contribution

change during a 30-day period that includes the date you become eligible; and (2) the Employer will notify

you not more than 90 days before your eligibility date that you may enroll in the Plan.

Following initial eligibility in the Plan, you may enroll in the Plan or change your contribution rate any time by

contacting the Plan record keeper:

Bank of America/Merrill Lynch

1-800-234-MACY (6229) option 1

Benefits OnLine at www.benefits.ml.com or via My IN-SITE

Type and amount of compensation you may defer

You may defer any amount of your compensation for the Plan year, not exceeding the annual deferral limit

in effect each year, or 50% of your qualified pay (whichever is less). For purposes of your deferral election,

“compensation” (available for deferral) generally means: wages paid to you and reported in box 1 of form

IRS W-2, while a covered employee of Macy’s, Inc.

If you are at least age 50 or will attain age 50 during a calendar year, then you may elect to defer additional

amounts (called “catch up contributions”) to the Plan. These are additional amounts that you may defer up

to an annual limit imposed by law regardless of any other limits imposed by the Plan.

Safe Harbor Matching Contribution

If you are a Plan Participant for the Plan year, Macy’s, Inc. will contribute a matching contribution equal to

100% of your deferral contributions which do not exceed 1% of your compensation, plus 50% of your

deferral contributions which exceed 1% but do not exceed 6% of your compensation.

For example, assume you earn compensation of $30,000 for the Plan year and you defer $1,800 of your

compensation (6%). You would receive a total matching contribution of $1,050. Your matching contribution

would consist of a 100% match on your first $300 (1% x $30,000), of deferral contributions, and a 50%

matching contribution on your next $1,500 (.5% x $30,000) of deferral contributions. You would not receive

a matching contribution on any additional deferrals that exceed 6% of your compensation.

Distribution and Vesting Provisions

You generally may not withdraw your pre-tax or Roth deferral contributions or the Macy’s, Inc. 401(k) Plan

Company match except when one of the following occurs: severance from employment with Macy’s, Inc.,

death, disability, attainment of age 59 ½, or when a qualifying hardship, as defined by the IRS, has

occurred. Participant contributions, under certain conditions, may be borrowed from the Plan in the form of a

loan. Non-Roth after-tax contributions are eligible for withdrawal at any time.

Vesting generally means that you have an unconditional entitlement to your benefit. You are always vested

in your own contributions to the Plan. The vesting schedule which applies to the Company contribution is as

follows:

0-1 year of vesting service: 0% vested

2 or more years of vesting service: 100% vested

Suspension or Reduction of Safe Harbor Matching Contribution

Macy’s, Inc. retains the right to reduce or suspend the safe harbor matching contribution under the Plan. If

Macy’s, Inc. choses to do so, you will receive a supplemental notice explaining the reduction or suspension

of the safe harbor matching contribution at least 30 days before the change is effective. Macy’s, Inc. will

contribute any safe harbor matching contribution you have earned up to that point. At this time, Macy’s, Inc.

has no such intention to suspend or reduce the safe harbor matching contribution.

Employer’s Right to Terminate

Pursuant to the terms of the Plan, Macy’s, Inc. has the right, at any time, to terminate the Plan. Termination

of the Plan will result in the discontinuance of all contributions to the Plan including the safe harbor 401(k)

Plan contribution with respect to any compensation you receive after the effective date of termination.

Termination of the Plan will not affect your right to receive any contributions you have accrued as of the

effective date of the termination.

For Further Information

Please refer to the Summary Plan Description (SPD) for a complete explanation of the Plan features.

Please as the Plan Administrator if you have any questions regarding your rights or obligations under the

Plan or if you would like to obtain an additional copy of the SPD. You may obtain a copy of the SPD on

My IN-SITE or by contacting the Plan Administrator at:

Macy’s, Inc.

7 W 7th St.

Cincinnati, OH 45202

1-800-234-MACY (6229)

NOTICE OF AUTOMATIC ENROLLMENT AND INVESTMENT MACY’S, INC. 401(k) RETIREMENT INVESTMENT PLAN

This notice informs you of the automatic enrollment feature of the 401(k) Plan. Participants who are eligible for the company match program may have been subject to the automatic enrollment feature of the 401(k) Plan, and should take the time to read this notice carefully. Participants who are eligible under the company’s immediate participation provision, and have not yet attained one year of Eligibility Service, are not subject to automatic enrollment until the year of Eligibility Service has been met. Although you may wish to take action with respect to your 401(k) Plan account based on the information in this notice, you are not required to take any action. Any Associate who became newly eligible to participate in the 401(k) Plan on or after Jan. 1, 1999 (Jan. 1, 2007 if the Associate was eligible for the May Profit Sharing Plan) received a 401(k) Plan enrollment packet in the mail at the time of eligibility. The enrollment packet described your automatic enrollment and features of the 401(k) Plan. If you were subject to automatic enrollment and did not change or waive the election, you were automatically enrolled in the 401(k) Plan and 3% of your eligible pay was withheld from your paycheck on a pre-tax basis each pay period. This amount has been contributed to your 401(k) Plan account beginning with your first paycheck after your eligibility date. Please note that these automatic contributions may increase annually (see # 2 below). You may choose to contribute a different amount at any time by logging into Merrill Lynch’s Benefits OnLine® directly at www.benefits.ml.com, or indirectly through the Save Actively page on My IN-SITE. You may choose to contribute more, less, or nothing at all. Keep in mind that the company will match a portion of the contributions you make up to 5% or up to 6% of your eligible pay (subject to 401(k) Plan rules). The applicable matching rate is described in the Plan’s Summary Plan Description (“SPD”), including summaries of 401(k) Plan modifications to reflect 401(k) Plan amendments. This notice gives you important information about some 401(k) Plan rules, including the Plan’s automatic enrollment feature. You can find out more about the 401(k) Plan in the Plan’s SPD included in your enrollment packet or on the Save Actively 401(k) page on My IN-SITE. 1. Does the Plan’s automatic enrollment feature apply to me? If you became newly eligible to participate in the 401(k) Plan on or after Jan. 1, 1999 (Jan. 1, 2007 if you were eligible for the May Profit Sharing Plan) and did not affirmatively elect to enroll or waive enrollment in the Plan, you were automatically enrolled starting with your first paycheck after your eligibility date. This means money has already been automatically withheld from your paycheck and contributed to your 401(k) Plan account (see #2 below). If you were eligible under the company’s immediate participation rules and elected a contribution amount of less than 3%, your contribution will be automatically increased to 3% after you complete a year of Eligibility Service. If you enrolled at or above 3%, your contribution rate is unchanged by the automatic enrollment process. If you have made an affirmative election with respect to either your contribution rate or your investment fund since being automatically enrolled in the Plan, the corresponding automatic feature no longer applies to you. You can change your contribution level or investment election at any time by logging into Benefits OnLine or calling HR Services. 2. If I did or do nothing, how much will be or has been withheld from my paycheck and contributed to my 401(k) Plan account? If you were subject to automatic enrollment, 3% of your eligible pay was initially withheld from your paycheck on a pre-tax basis and was contributed to your 401(k) Plan account. This began with your first paycheck after your eligibility date. If you have not made any changes to your contribution and you became a new participant in the Plan on or after Sept. 1, 2008, your contribution automatically increased 1% on the first Jan. 1 that occurred after you were automatically enrolled in the Plan for 12 months. Furthermore, your contribution rate will continue to increase 1% each year until it reaches 6%.

If, for example, you were first eligible for the 401(k) Plan on Jan. 1, 2012, 3% of your eligible pay was withheld from your paycheck beginning with your first paycheck in 2012 and contributed to your 401(k) Plan account. If you did not make any changes to the 3% automatic contribution during the year, your contribution will automatically increase to 4% on Jan. 1, 2013. Please note, in order to comply with Safe Harbor regulations, your contribution was not automatically increased in the 2014 Plan year. When you enter the Plan mid-year, you must complete a year as an active participant before the automatic increase takes effect. For example, if you were automatically enrolled in the Plan on Feb. 1, 2015, you would not be automatically increased on Jan. 1, 2016, as you had not participated for 1 full year. On Jan. 1, 2017, your first automatic increase would take effect. You may contribute more or less to your 401(k) Plan by choosing a different percent. However, there are limits on the maximum amount that you can contribute in a calendar year. These limits are dictated by the IRS and are described in “Plan Highlights” under the “Plan Information” section Benefits OnLine. Also, please keep in mind that it is only on your contributions up to 5% or up to 6% of your eligible pay that the company makes a matching contribution at the established matching rate (subject to 401(k) Plan rules). An excellent reason to contribute to your retirement through the 401(k) Plan is to delay taxation. Your contributions to the Plan are taken out of your paycheck on a pre-tax basis and are not subject to federal income tax at that time. Instead, they are contributed to your Plan account and can grow over time with earnings. Your account will be subject to Federal income tax only when withdrawn. To learn more about the Plan’s definition of eligible pay, see the Plan’s SPD. 3. How will my 401(k) Plan account be invested? The 401(k) Plan lets you invest your account among several different investment funds. For a description of the Plan’s investment funds, please see the Investment Options section of the Plan’s SPD. For updated investment return information, please log into Benefits OnLine. Unless you change the investment fund or funds, your Plan account is automatically invested in the Target Retirement Date Fund appropriate to your estimated retirement date at age 65. Description of the Target Retirement Date Funds: Investment Vehicle/Objective – Each of the Target Retirement Date Funds is a mix of stocks and bonds. As time passes, the mix of the fund is rebalanced so that it becomes more conservative (less risky) as you approach retirement. Each fund seeks to provide capital appreciation and current income consistent with its asset allocation strategy. Each of the Target Retirement Date Funds is designed to hold 100% of the 401(k) Plan assets for those individuals with a particular target retirement date range. Investment Process – To match a variety of expected retirement dates, the Plan provides eleven Target Retirement Date Funds. Each is managed by The Vanguard Group, Inc. or a subsidiary (collectively “Vanguard”) and invests in a group of Vanguard mutual funds to provide the desired asset allocation. Risk – Investors should consider that each Target Retirement Date Fund not only has a mix of underlying stock and bond-type investments that will have investment risks of their own, but also has asset allocation risks. Asset allocation risks are driven by the fund’s mix of underlying investments, which could cause the Fund to underperform other funds with similar objectives. There can be no assurance that the fund will not decline in value. Expenses – The expenses of administering the Plan are paid by the Plan. Brokerage fees and commissions for the Target Retirement Date Funds are paid out of that fund. For the 2016 calendar year, the annual expense ratios for the funds ranged from 0.20% to 0.23%. Target Retirement Date Funds’ historical expenses are:

Fund* 2014 2015 2016

Target Income Retirement Fund 0.24% 0.23% 0.23%

Target 2010 Retirement Fund 0.23% 0.23% 0.22%










You can change how your Plan account is invested at any time. You may choose among the Plan’s five core investment funds, eleven Target Retirement Date Funds, or the Self-Direct Brokerage by logging into Benefits OnLine or calling HR Services. 4. When will my Plan account be vested and available to me? You are always fully vested in your contributions to the Plan. You will become vested in your company match account according to a vesting schedule based on years of vesting service. You receive one year of vesting service for each Plan year (Jan. 1 – Dec. 31) you are paid for 1,000 hours of service. The Plan provides that your vested accounts may be distributed in full after you have terminated employment with Macy’s, Inc. You also may be eligible for partial withdrawals while you are employed (“in-service withdrawals”). To find the guidelines for withdrawals, see the Plan’s SPD. 5. Can I change the amount of my contributions? You can change the amount you contribute to the Plan at any time. For example, if you were automatically enrolled in the Plan at 3%, you can change your contribution up to 5% or 6% of eligible pay to receive the full benefit of the company’s matching contribution. To change your contribution amount, log into Benefits OnLine through the Save Actively page on My IN-SITE or call HR Services. If you have any questions about how the Plan works or your rights and obligations under the Plan, or if you would like a copy of the Plan’s SPD or other Plan documents, please contact HR Services at 1-800-234-MACY (6229) and select option 1 to speak to a Merrill Lynch representative. *Important note: In July 2017 the Target 2060 Vanguard Retirement Fund was added to the Macy’s, Inc. 401(k) Plan investment assortment. Historical expense data is not yet available for this fund.

Participant Disclosure of Plan and Investment Related Information Macy’s, Inc. 401(k) Retirement Investment Plan

Participating in the Macy’s, Inc. 401(k) Retirement Investment Plan can be one of the best ways you can save and invest for your financial future. The assets you could accumulate through your Plan account may be one of your primary sources of income in retirement, so you’ll want to make the most of the opportunity the Plan offers.

When you participate in the Plan, it’s important that you understand the benefits available to you through the Plan. It’s also important that you understand your rights and responsibilities as a participant, the investment choices the company makes available in the Plan, and the expenses associated with your participation. These expenses include any fees you may incur directly, such as fees for certain transactions, and any indirect costs associated with the investment choices you select for your Plan account.

This document provides participants in the Macy’s, Inc. 401(k) Retirement Investment Plan, with certain Plan and investment-related information. This information includes the costs associated with your participation and investment choices, along with your rights to direct how your accounts in the Plan are invested.

Macy’s, Inc. has directed the provision of this information. This document, along with the educational information, tools and services available through Merrill Lynch, is designed to help you make smart and informed decisions as you prepare for your financial future.

What’s InsidePlan-Related Information

This section includes information about your ability to direct the investment of your Plan account and administrative expenses of the Plan. It’s important that you understand your responsibility to direct your accounts to the investment alternatives of your choice.

This section is organized into three categories:

1. General Plan Information: Describing your rights to choose and manage Plan investments.2. Administrative Expenses Information: Describing general administrative expenses that may be charged against your account, and;3. Individual Expenses Information: Describing individual transaction expenses that may be charged only to your account.

Investment-Related Information

The Plan’s menu of investment alternatives is designed to help you select a mix of investments that you believe is appropriate for your financial goals, tolerance for investment risk and time horizon.

This section provides key information about the investment alternatives offered through the Plan, including the type of fund, its historical performance, its performance relative to a benchmark of similar investments, each fund’s expense ratio and any fees and expenses that may be associated with certain transactions in any of these investments.

For additional information and documentation regarding your Plan:

• Macy’s, Inc.

HR Services

145 Progress Place

Springdale, OH 45246

• (800) 234-6229

• www.benefits.ml.com

Plan-Related InformationPlan Name: Macy’s, Inc. 401(k) Retirement Investment Plan Recordkeeping Plan Number: 609910

1. General Plan Information

Your rights as a participantAs a participant in the Plan, you have the right to choose how to invest your account among the investment alternatives that the Macy’s, Inc. 401(k) Retirement Investment Plan makes available to participants.

Your Investment AlternativesMacy’s, Inc. 401(k) Retirement Investment Plan currently makes the following investment alternatives available to you as a Plan participant:

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Macy’s, Inc. Investment Alternatives

International Stock Index Fund

Macy’s, Inc. Stock Fund

S&P 500 Stock Index Fund

Self-Direct Brokerage Account Service Small/

Mid Cap Stock Index Fund

Stable Value Fund

Vanguard Target Retirement Income Trust

Vanguard Target Retirement 2015 Trust









Investment Managers

Advice Access

Advice AccessAdvice Access is an investment advisory service that provides personalized planning and investing advice for retirement plan participants. Advice Access provides personalized, unbiased savings and investment recommendations — provided by an independent financial expert, Morningstar. Recommendations are based on an individual’s goals and current status and include contribution rate, asset allocation and specific investment alternatives. Advice Access can take into consideration other participant data, including assets held outside the retirement plan to formulate a comprehensive strategy.

Directing Your InvestmentsAs a Plan participant, you can change your current investments as well as your investment direction for future contributions on a daily basis.

Investment directions are processed the same business day if received prior to 3 P.M. (ET) (unless there is an earlier market closure), otherwise they are processed the following business day. Investment directions are not processed on days the New York Stock Exchange (NYSE) is closed (i.e., weekends, market holidays), but will be processed on the next business day the NYSE is open. Any fund orPlan-specific restrictions or limitations are described in the Investment-Related Information section of this document.

You can direct how your future contributions are to be invested, or change how your existing balance is invested, on Benefits OnLine® at www.benefits.ml.com or by calling (800) 234-6229.

Fees, Limitations & RestrictionsAs a Plan participant, you may be subject to fees that are charged directly against your investments. Although rarely assessed, fees may include sales loads, sales charges, surrender charges and/or exchange fees.In addition, redemption fees (also referred to as market timing or short term trading fees), which are imposed by the investment alternative(s) and used to mitigate excessive trading, if applicable, are applied to fund transfers that are directed by you as the Plan participant. Merrill Lynch will notify you of any redemption fees, including the amount, before you direct such trades via Benefits OnLine, the Interactive Voice Response (IVR) system, or with a representative at (800) 234-6229.Your Plan may also include certain restrictions designed to prevent market timing transactions and excessive trading that prohibit the purchase and subsequent sale of investment alternative(s) within a specified timeframe.For specific fees, Plan restrictions and limitations pertaining to your investment alternatives, please refer to the charts in the Investment-Related Information section or Benefits OnLine.Proxy Voting and Tender RightsProxies and corporate actions are voted in accordance with the provisions in the Plan’s trust as described below:

Company StockWith company stock, you have the right to direct the Trustee or designated agent on how to vote any issued proxies or corporate actions. You will receive the proxy material or corporate action information for voting.

Important Note: In July, 2017 the Vanguard 2060 Retirement Trust was added to the Macy's, Inc. investment option assortment.

If you do not provide the Trustee or designated agent with timely voting instructions, they will vote the shares in proportion to the voting instructions actually received from other participants, subject to the Trustee’s fiduciary responsibilities under ERISA.

Mutual Funds and Other Investment AlternativesWith mutual funds and other investment alternatives, the proxies are voted by a Plan representative.

Self-Directed BrokerageSelf Direct Brokerage (SDB) accounts holding investments on the record date are automatically captured through the Merrill Lynch proxy process, and data is provided to the proxy vendor each night for processing. As a participant in SDB, you will receive the proxy voting card and instructions.Self-Direct Brokerage AccountsMacy’s, Inc. offers participants the Self-Direct Brokerage Account (SDB) service, which is a separate account within your retirement Plan that allows you to invest in investments not available in your Plan’s investment menu. Macy’s, Inc. offers participants the following type(s) of Self-Direct programs:• SDB Direct Advantage - Designed for investors who prefer to submit trades themselves online or through the call center.

Participants create their own investment strategy and have access to a comprehensive range of investments.

2. Administrative Expenses InformationThere are currently no fees and expenses for Plan administrative services charged against participant accounts that are not reflected in the total annual operating expenses of an investment. However, there may be applicable Plan administrative fees and expenses arising from time to time that may be charged to participant accounts on a pro rata basis (i.e., based upon a participant’s account balance relative to total Plan assets) or a per capita basis (i.e., a flat fee for each participant account), as the Plan fiduciary chooses.

The actual amount of any such administrative fees and expenses charged to your account will appear on your participant statement under the Contributions and Activity For This Period section.

3. Individual Expenses InformationThis section describes any fees and expenses that may be charged against the account of any participant or beneficiary of an individual, rather than on a Plan-wide basis, and are not reflected in the total annual operating expenses of any investment alternative. Individual expenses include any fee you might be charged for a particular transaction or service that you select. These fees are deducted directly from your account and shown on your quarterly participant statement.

Here are the transactions for which the Plan charges fees to your account:

Transaction

One-Time Loan Initiation

Overnight Check Service

Returned ACH Fee

Wires

Fee

$50.00 per loan initiated

$25.00 per check

$25.00 per returned ACH

$10.00 per Request

Your voting instructions will be forwarded to the Trustee or designated agent, who will vote the Plan’s shares in accordance with your instructions.

Self-Direct Brokerage Fees

$125.00

Transactions conducted at Net Asset Value (NAV)

Self-Direct Brokerage (SDB) is a separate account through which you can buy and sell investment choices not available in your Plan’s regular investment menu.SDB Direct Advantage

Annual Recordkeeping Fee:

Mutual Fund Alliance Funds

Mutual Funds Supermarket

Funds

Online trades: $49.95 Call Center trades: $74.95

Investment-Related InformationThis section includes important information to help you compare the investment alternatives under your retirement plan. If you want additional information, including more current performance information about your investment alternatives, you can go to the Plan’s website at www.benefits.ml.com, or call (800) 234-6229.

The table shown in this section provides information about the designated investment alternatives the Plan has chosen to make available to participants.

The table provides historical performance information for the investment alternatives that do not have a fixed or stated return as well as related expenses, fees and restrictions where applicable. The performance for each investment option is also compared to a benchmark, which measures how an index of similar funds has performed over the same period.

Fees and expenses are only one factor to consider when selecting your investments and the cumulative effect of fees and expenses can substantially reduce the growth of your retirement account. For an example of the long-term effect of investment fees and expenses, you can visit the Employee Benefit Security Administration’s website at www.dol.gov/ebsa/publications/401k_employee.html for additional information.

Historical Performance – Variable Return Investments

This table displays the historical performance of the investment alternatives available in your Plan that have a variable rate of return, meaning that they can rise or decline in value during any given period. It also shows the expenses and fees (if any) for the investment alternatives available through the Plan.

Shown for each fund is its gross annual expense ratio. An expense ratio is an amount that shareholders pay for fund operating expenses and management fees, and is expressed as a percentage of its total assets.

These expenses reduce the investment return available to you through the fund. These expenses are shown in this table on a per $1,000 basis. For a fund with an expense ratio of 0.25%, for example, this means that for each $1,000 invested in the fund, $2.50 would be used by the fund to help cover its costs rather than to earn a potential return for the investor.

This historical performance is measured against the performance or a benchmark of similar investments. (A participant cannot invest directly in an index used as a benchmark.)

The performance data contained herein represents past performance. An investment’s past performance is not necessarily an indication of how the investment will perform in the future. Investment return and principal value will fluctuate so that units, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more current fund performance, including the most recently completed calendar month, please log on to Benefits OnLine at www.benefits.ml.com.

The fund performance data is shown net of fees. All total returns assume the reinvestment of all dividend and capital gain distributions at net asset value when paid and do not reflect the deduction of any sales charges, as these charges are not applicable to eligible 401(k) Plans. Had the sales charge been deducted, results would have been lower than shown. Please note that there are other charges and expenses that apply to the investment alternatives, such as management fees, which are reflected in their net investment return.

As of June 30, 2017

Investment Category Investment Name BenchmarkRedemption Fees, Limitations Average Annual Total Return %

Annual GrossExpense Ratio

1 YrSince 5

5 Yr 10 Yr InceptionInceptionDate As a %

Per$1,000

EQUITY/STOCK

International Stock Index Fund1 International Stock Fund Benchmark

20.00%20.45%

8.08%8.15%

0.28%0.77%

N/AN/A

04/1997N/A

0.23%N/A

$2.30N/A

Macy’s, Inc. Stock Fund S&P 500 TR

-27.52%17.90%

-5.02%14.63%

-3.33%7.18%

N/A9.44%

04/1997N/A

0.13%N/A

$1.30N/A

S&P 500 Stock Index Fund2S&P 500 Stock Index Fund Benchmark

17.74%17.90%

14.47%14.63%

7.02%7.18%

N/AN/A

04/1997N/A

0.17%N/A

$1.70N/A

Small/Mid Cap Stock Index Fund3 Small/Mid Cap Stock Fund Benchmark

21.46%21.37%

14.09%14.04%

7.18%7.45%

N/AN/A

04/1997N/A

0.17%N/A

$1.70N/A

MONEY MARKET/STABLE VALUE

Stable Value Fund4Stable Value Fund Benchmark

1.89%0.13%

1.97%0.11%

2.67%1.30%

N/AN/A

04/1997N/A

0.57%N/A

$5.70N/A

OTHERVanguard Target Retirement Income Trust5

Target Retirement Income Trust Benchmark5.13%5.38%

4.83%5.07%

N/AN/A

5.14%5.35%

09/2008N/A

0.22%N/A

$2.20N/A

Vanguard Target Retirement 2015 Trust6 Target 2015 Retirement Trust Benchmark

8.04%8.31%

7.22%7.50%

N/AN/A

6.08%6.21%

09/2008N/A

0.20%N/A

$2.00N/A


10.22%10.51%

8.36%8.67%

N/AN/A

6.50%6.70%

09/2008N/A

0.20%N/A

$2.00N/A


11.85%12.17%

9.13%9.44%

N/AN/A

6.74%6.94%

09/2008N/A

0.20%N/A

$2.00N/A


13.37%13.69%

9.85%10.18%

N/AN/A

6.92%7.15%

09/2008N/A

0.20%N/A

$2.00N/A


14.88%15.23%

10.58%10.90%

N/AN/A

7.21%7.44%

09/2008N/A

0.20%N/A

$2.00N/A


16.44%16.79%

11.06%11.38%

N/AN/A

7.46%7.69%

09/2008N/A

0.20%N/A

$2.00N/A


16.92%17.29%

11.13%11.46%

N/AN/A

7.50%7.73%

09/2008N/A

0.20%N/A

$2.00N/A


16.91%17.29%

11.14%11.46%

N/AN/A

7.51%7.73%

09/2008N/A

0.20%N/A

$2.00N/A


16.91%17.29%

11.04%11.46%

N/AN/A

8.29%8.58%

05/2011N/A

0.20%N/A

$2.00N/A

Below are definitions of fees and restrictions that may or may not be imposed by designated investment alternative managers:

Redemption Fees: Designated investment alternatives may assess an investment-specific short-term redemption fee when investments are held for less than a fixed period of time. This helps to mitigate excessive trading.

Repurchase Restrictions: Designated investment alternatives may impose limitations to repurchase into the same investment within a specified period of time (i.e. 60 Calendar days). This restriction helps to limit increases to investment expenses.

Minimum Waiting Block Period: Designated investment alternatives may institute a waiting period (i.e., 15 Business days) for the selling and/or repurchasing of investments. This helps to mitigate excessive trading.

To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform very well often cause another asset category, or another particular security to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.

Investment Category Investment Name BenchmarkRedemption Fees, Limitations

Average Annual Total Return %Annual GrossExpense Ratio

OTHER

Although a Money Market Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Keep in mind the 7-day yield more closely reflects the current earnings of the fund, than the total return quotation.Please be aware that certain investment alternatives may charge redemption fees for short-term trading, which are imposed by the investment alternative companies. The returns for these funds will not reflect such fees, and if they had been reflected, results would have been lower than shown.For certain investment alternatives, the returns reflect subsidies and waivers, without which the results would have been lower than noted. These subsidies and waivers may not continue to remain in effect. Please consult the prospectus for more information.

Investors should consider the investment objectives, risks, charges and expenses of investment alternatives carefully before investing. This, and additional information about the investment alternatives, can be found in the prospectuses, and, if available, the summary prospectuses, which can be obtained on Benefits OnLine® at www.benefits.ml.com or by calling Merrill Lynch at (800) 234-6229. Investors should read the prospectuses and, if available, the summary prospectuses carefully before investing.

For more information on the investment alternatives that are not mutual funds (non-registered investments), log on to www.benefits.ml.com and refer to the fund description or fact sheet, if available.

Investing involves risk, including possible loss of the principal value invested. Investments in foreign securities or sector funds, including technology or real estate stocks, are subject to substantial volatility due to adverse political, economic or other developments and may carry additional risk resulting from lack of industry diversification. Funds that invest in small or mid-capitalization companies experience a greater degree of market volatility than those of large-capitalization stocks and are riskier investments. Bond funds have the same interest rate, inflation, and credit risks associated with the underlying bonds owned by the fund. Generally, the value of bond funds rises when prevailing interest rates fall and falls when interest rates rise. Investing in lower-grade debt securities ("junk" bonds) may be subject to greater market fluctuations and risk of loss of income and principal than securities in higher rated categories. There are ongoing fees and expenses associated with investing. Bear in mind that higher return potential is accompanied by higher risk.

1 The International Stock Fund benchmark consists of the Morgan Stanley Capital International All Country World ex-U.S. Net Index (MSCI EAFE Net Index prior to July 1, 2013).

2 The S&P 500 Stock Index Fund benchmark consists of the Standard & Poor’s 500 Stock Index.

3 The Small/Mid Cap Stock Fund benchmark consists of the Dow Jones U.S. Completion Index (Russell 2000 Index prior to July 17, 2008).

4 The Stable Value Fund benchmark consists of a rolling 4-year average of 90-day Treasury bill returns.

5 The Target Income Fund benchmark consists of 18% CRSP U.S. Total Market, 12% FTSE Global All-Cap ex-U.S., 16% Barclays Global Aggregate ex-U.S., 37% Barclays U.S. Aggregate, 17% Barclays U.S. 0-5 Year TIPS.

6 The Target 2015 Fund benchmark consists of 28% CRSP U.S. Total Market, 19% FTSE Global All-Cap ex-U.S., 13% Barclays Global Aggregate ex-U.S., 31% Barclays U.S. Aggregate, 9% Barclays U.S. 0-5 Year TIPS.

7 The Target 2020 Fund benchmark consists of 34% CRSP U.S. Total Market, 23% FTSE Global All-Cap ex-U.S., 12% Barclays Global Aggregate ex-U.S., 29% Barclays U.S. Aggregate, 2% Barclays U.S. 0-5 Year TIPS.

8 The Target 2025 Fund benchmark consists of 39% CRSP U.S. Total Market, 26% FTSE Global All-Cap ex-U.S., 11% Barclays Global Aggregate ex-U.S., 24% Barclays U.S. Aggregate.







Learn more

To learn more about investing, visit Benefits OnLine at www.benefits.ml.com. Then select the Education Center tab. Here you can view a wealth of informative articles and videos intended to help you feel confident in your financial future at each stage of your life, whether you are just starting out, transitioning to retirement or somewhere in between.Our Risk Assessment and Investment Guide, available via the Investment Direction section of your Investments, is a guide that can help you understand your risk profile and how you might invest in your accounts.

Summary Annual Report

For Macy’s, Inc. 401(K) Retirement Investment Plan

This is a summary of the annual report for Macy’s, Inc. 401(K) Retirement Investment Plan,

EIN 13-3324058, Plan No. 013, for period Jan. 1, 2016 through Dec. 31, 2016. The annual report has been

filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the

Employee Retirement Income Security Act of 1974 (ERISA).

Basic Financial Statement

Benefits under the Plan are provided by a trust fund. Plan expenses were $432,392,000. These expenses

included $9,813,000 in administrative expenses, and $422,579,000 in benefits paid to participants and

beneficiaries. A total of 187,457 persons were participants in or beneficiaries of the Plan at the end of the Plan

year, although not all of these persons had yet earned the right to receive benefits.

The value of Plan assets, after subtracting liabilities of the Plan, was $3,627,213,000 as of Dec. 31, 2016,

compared to $3,467,944,000 as of Jan. 1, 2016. During the Plan year the plan experienced an increase in its

net assets of $159,269,000. The Plan had total income of $591,661,000, including employer contributions of

$92,438,000, employee contributions of $238,755,000, and earnings from investments of $260,468,000.

Your Rights to Additional Information

You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed

below are included in that report:

an accountant's report;

financial information;

information on payments to service providers;

assets held for investment

information regarding any common or collective trusts, pooled separate accounts, master trusts or

103-12 investment entities in which the Plan participates;

To obtain a copy of the full annual report, or any part thereof, write or call Macy’s, Inc., c/o Macy’s Corporate

Services, Inc., 7 West Seventh Street, Cincinnati, OH 45202, (888) 972-4243. To ensure proper handling,

please include the Plan number of the annual report being requested.

You also have the right to receive from the Plan administrator, on request and at no charge, a statement of the

assets and liabilities of the Plan and accompanying notes, or a statement of income and expenses of the Plan

and accompanying notes, or both. If you request a copy of the full annual report from the Plan administrator,

these two statements and accompanying notes will be included as part of that report.

You also have the legally protected right to examine the annual report at the main office of the plan (Macy’s,

Inc., 7 West Seventh Street, Cincinnati, OH 45202) and at the U.S. Department of Labor in Washington, D.C.,

or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the

Department should be addressed to: Public Disclosure Room, Room N1513, Employee Benefits Security

Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

Documents

Macy’s, Inc. | SAVE ACTIVELY NEWSLETTER LIVING Fall 2017 ... · Macy’s, Inc. retains the right to reduce or suspend the safe harbor matching contribution under the Plan. If Macy’s,