Executive Deferred Compensation Plan (EDCP)
Another great way to save for your future if you’re at an executive director level or above. Elect 1%–80% of your salary, commissions, and/or annual bonus to be paid at a later date. Whatever money you make above the annual IRS compensation limit ($330,000 in 2023) is eligible for the company match, up to 6%. (For example, if your total compensation is $350,000, $20,000 will be eligible for the matching contribution.) You have lots of investment options for your deferred money. And you don’t pay taxes until it’s paid out to you. What’s not to love?
Did we mention “free money” from Lenovo? Tax advantages? Lots of investment options?
- Elect 1%–80% of your salary, commissions, and/or annual bonus
- 100% company match of your total compensation above the IRS limit ($330,000 in 2023), up to 6%
- Pretax contributions and company matches
- Ability to defer in excess of the limits of the Lenovo Savings Plan
- Matching contributions are made once annually for active employees, during the last pay period in December
Did you know?
You can enroll in the EDCP only during the two enrollment windows held each year (March for bonus deferral and November for salary deferral). Keep in mind: Once you’ve made your elections for a specific plan year, you can’t make changes. Elections do not carry over from year to year, and you must reenroll each year. One of the best parts of the EDCP is that you’re always 100% vested in your deferral amounts. That means they’re all yours. Forever and ever.
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How can I start saving for my future with the EDCP?