401(k) Plan Overview

Planning for retirement is a partnership between you and Medtronic. Through our competitive Medtronic 401(k) Plan, the company helps you build financial security by matching 50% of the first 6% you save. Legacy Covidien employees and those hired after January 1, 2016 receive an additional contribution each year called the Medtronic Core Contribution.*

Plan Administrator

Fidelity is the plan administrator for the Medtronic 401(k) Plan. If you have questions related to the Plan, call the Fidelity Service Center at (877) 902-0022 or log on to the NetBenefits website.

As a Medtronic employee, there are several ways that you can build retirement savings, including:

  • Your savings
  • Medtronic matching contributions
  • Medtronic core contributions

In order to save for retirement, it’s also important that you understand and review your investment and vesting options for your savings to ensure you’re getting the most out of your retirement plan.

*If you are a legacy Medtronic employee you may be a participant in the Personal Investment Account (PIA), Personal Pension Account (PPA) or Medtronic Retirement Plan (MRP) instead of the MCC. To access the PIA, go to Fidelity Service Center. To access the MRP/PPA, go to the Retirement Service Center for more information.

Your Savings

You can save between 2% and 75% of your eligible pay in the Medtronic 401(k) Plan, up to IRS limits. You can make several types of contributions to the Plan, including:

  • Pre-tax contributions — these are deducted from your pay before your taxable income is determined
  • Roth 401(k) after-tax contributions — these can be withdrawn tax-free at retirement

In addition, you can make catch-up contributions if you are age 50 or older and contribute the maximum annual amount. In 2019, the IRS allows eligible employees to contribute an additional $6,000 in catch-up contributions.

Medtronic Matching Contributions

When you save in the Medtronic 401(k) Plan, Medtronic matches your contributions to help build your retirement funds:

  • Regular matching contributions — Medtronic matches up to 50% of the first 6% you save in your Medtronic 401(k) Plan each pay period.
  • Additional contributions — Medtronic may make additional matching contributions after the end of the Plan year based on company performance. Over the last 10 years, Medtronic's total average company match has been more than 4.5% for employees who contribute at least 6% of eligible pay!
Medtronic Core Contributions

If you’re a legacy Covidien employee or a newly hired employee on or after January 1, 2016, you’ll be eligible to receive a core company contribution equal to 3% of eligible pay, made after the end of the Plan year. Medtronic makes this contribution to the Medtronic 401(k) Plan whether you contribute your own savings, or not.

Vesting

You are always 100% vested in your own contributions. See below for the vesting schedule that applies to Medtronic’s contributions:

  • New hires on or after January 1, 2016: 3-year cliff vesting
  • Vesting for current legacy Medtronic employees:
    • 1 year = 20% vested
    • 2 years = 40% vested
    • 3+ years = 100% vested
  • Vesting for current legacy Covidien employees:
    • Employed on or before January 26, 2015: 100% vested
    • Employed after January 26, 2015: vested after 2 years
©
SharePoint
| Ext Access