Another great way to save for your future if you’re at an executive director level or above. Elect a percentage of your salary, commissions, and/or annual bonus to be paid at a later date. It can be 1%–80%. Lenovo matches your contributions, up to 6%. You have lots of investment options for your deferred money. And you don’t pay taxes on it until you’re paid out. 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, up to 6%
- Pre-tax contributions and company matches
- Ability to defer in excess of the limits of the Lenovo Savings Plan
You can only enroll in the EDCP 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 re-enroll 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.