How the Plan Works

Eligibility

Eligibility to participate in this plan is for the Vice President level and above.

Employee Contributions

You may defer between 1 and 50 percent of your base salary AND commissions or Zebra Incentive Plan (ZIP) award, whichever you are eligible for. Contribution elections can be made during the open enrollment period that generally takes place in November each year or within 30 days of your initial eligibility to participate.

Deferral elections are irrevocable and cannot be changed during the plan year.

Annual Enrollment Window

Each year, eligible participants will be notified of the election window. During this time, you may make changes to your deferral elections and elect the investments for your deferrals. First-time enrollees may elect the form of distribution.

If you do not make an election during the enrollment window, your deferral elections will carry over from the previous year.

You will be prompted to name beneficiaries following the online enrollment process.

Vesting

Vesting refers to your right of ownership to the money in your account. You are always fully vested in your own deferrals and their earnings.

Investment Options

When you enroll in this plan, you will choose how you want your deferrals allocated among the available investment options.

You can move assets you have already deferred by exchanging into other funds. You can also change the way your future contributions are invested.

Distributions

Distributions begin six months after your employment ends, as either a lump-sum payment or installment payments paid over five or ten years. Your distribution will be paid according to the elections you made at the time you deferred the income. Employees who made elections prior to January 1, 2017 have the option to change their distribution election.

You can withdraw money from your account for a serious financial hardship, although you will pay income tax on the money you withdraw.

Risks of Participating

Be aware that risk is associated with participating in the plan because it is not funded like a qualified plan. Please refer to the NQDC Plan Highlights Flyer for more information.