The NXP 401(k) Retirement Plan is designed to be market-competitive and help you save for retirement. Your Plan offers employer contributions, immediate vesting and investment options that give you the ability to diversify your account — giving you the power to take charge of your financial future. It also helps you generate the level of income needed to support the longer lifespans and the more active lifestyles of today’s retirees.
You decide how much of your eligible compensation you would like to contribute to the Plan — in 1% increments — up to 75% (subject to the IRS maximum). You can elect to contribute on a pre-tax basis, Roth (after-tax) basis, traditional after-tax basis or in a combination of the three.
In 2024, you can contribute up to $23,000 in pre-tax and/or roth contributions, plus up to $7,500 in catch-up contributions if you are age 50 or older.
You may make after-tax contributions above the pre-tax and Roth contribution limit. The Internal Revenue Service (IRS) reviews these limits annually and determines if there will be an increase. You’re immediately vested in your personal contributions and NXP’s matching contributions. If you leave NXP at any time, you may take 100% of your account balance with you.
Pre-tax contributions are deducted directly from your pay before federal (and most state and local) income taxes are withheld. This reduces your taxable income, giving you immediate tax savings you can use to help fund your retirement. Your contributions, and their investment returns, grow tax-free ― and aren’t taxed until you receive distributions from the Plan.
Roth contributions come from your eligible compensation on an after-tax basis. Though these contributions do not reduce your current income for tax purposes, your investments grow tax free, just as with pre-tax 401(k) accounts. If you meet certain requirements, Roth contributions and their investment returns, are generally not taxable when you receive them as a future benefit.
After-tax contributions are deducted from your eligible compensation on an after-tax basis. Traditional after-tax contributions allow you to contribute above the IRS limit for pre-tax and Roth contributions. After-tax contributions are not matched by NXP. You can withdraw your after-tax contributions from the plan at any time. You will not owe taxes on a withdrawal of your after-tax contributions, but you’ll owe taxes on the earnings.
View the NXP 401(k) Plan Contribution ebrochure to learn more about your contribution options, the Roth in-plan conversion feature and see examples. The table below summarizes the different types of contributions, the tax implications of each and the 2024 annual limits.
| Pre-Tax Contributions | Roth Contributions | After-Tax Contributions | Employer Match | |
|---|---|---|---|---|
| Are contributions taxed when made? | No | Yes | Yes | No |
| Are contributions taxed when distributed? | Yes | No1 | No2 | Yes |
| Are earnings taxed when distributed? | Yes | No1 | Yes2 | Yes |
| What are the IRS limits? | $23,000 for 2024 employee pre-tax and Roth contributions | |||
| $69,000 for 2024, including employee pre-tax, Roth, after-tax and employer match contributions | ||||
| What is the catch-up contribution for a person age 50 or older? | An additional $7,500 for 2024 | |||
| A catch-up contribution may be made on a pre-tax or Roth basis and is in addition to the combined pre-tax and Roth $23,000 annual limit, as well as the $69,000 annual additions limit, which applies to the total contributions made to your 401(k) across pre-tax, Roth, after-tax and employer contributions. | ||||
1 A distribution from a Roth 401(k) is tax free and penalty free, provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, or death.
2 A partial distribution from a qualified plan must include a proportional share of the pre-tax and after-tax amounts in the account. Therefore, while the portion of your distribution associated with your after-tax contribution is not taxable, the portion of your distribution associated with any pre-tax contributions or earnings on pre-tax or after-tax contributions is taxable.
To help your savings go even further, NXP will match your personal contributions, whether pre-tax, Roth (after-tax) or catch-up, dollar-for-dollar up to 5% of your eligible compensation (The IRS eligible annual compensation maximum $345,000 for 2024).
These matching funds will be credited to your account each pay period, based on your contribution. If you have not received the full match on your total contributions at the end of the year, NXP will make a “true-up” contribution to ensure you receive the maximum match allowed under the Plan. NXP does not match traditional after-tax contributions.
5% of Eligible Compensation (Your Contribution) + 5% NXP Match (NXP Contribution) = 10% of Eligible Compensation (Total Contribution to Your Account)
A Roth in-plan conversion allows you to convert all or a portion of your pre-tax and/or traditional after-tax savings to Roth within the NXP 401(k) plan.
You’ll owe ordinary income tax on the pre-tax money converted to Roth in the tax year of the conversion. If you convert after-tax money to Roth, you’ll owe taxes on the earnings in the year in which the conversion is made. For traditional after-tax, you can also set up automatic conversions.
To learn more, visit www.netbenefits.com. To elect a Roth in-plan conversion, call Fidelity at 844-NXP-401K (844-697-4015).
The NXP 401(k) Retirement Plan gives you the power to make investment decisions that match your savings objectives and investment preferences. You have a choice of core investment funds, including target date funds, to which you can invest in 1% increments. These investment elections apply to your contributions and the NXP matching contributions. In addition, you have access to a self-directed brokerage account.
Visit Fidelity NetBenefits to learn more about each fund, including its investment objectives and historical performance.
The NXP 401(k) Retirement Plan offers a self-directed brokerage account (SDBA), with Fidelity BrokerageLink®. BrokerageLink® provides an opportunity to invest in a broad range of investment options beyond those offered directly through the plan, including individual company stocks and mutual funds. You are solely responsible for your investments in the SDBA.
To learn more, or to open a BrokerageLink account, log on to Fidelity NetBenefits and choose BrokerageLink from the Quick Links menu.
Coordinating all of your finances so they work together can be challenging. That’s why NXP is offering Fidelity® Personalized Planning and Advice to help you meet your retirement goals and other financial priorities.
Together with your personalized planning and advice team you’ll get help creating and implementing a plan across financial priorities, taking into consideration: savings, income, debt, social security, pensions and spousal assets.
Once your plan is created and implemented:
Learn more at Fidelity Investments or call 866-811-6041
Investing involves risk, including risk of loss.
Fidelity® Personalized Planning and Advice at Work is a service of Fidelity Personal and Workplace Advisors LLC and Strategic Advisers LLC. Both are registered investment advisers, are Fidelity Investments companies and may be referred to as “Fidelity,” “we,” or “our” within. For more information, refer to the Terms and Conditions of the Program. When used herein, Fidelity Personalized Planning and Advice refers exclusively to Fidelity Personalized Planning and Advice at Work. This service provides advisory services for a fee.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2018 FMR LLC. All rights reserved.
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One of the biggest pitfalls in saving for retirement is failing to account for the effects of inflation. If you don’t continually focus on savings growth, you run the risk of losing purchasing power over time. The NXP 401(k) Retirement Plan has a feature that can help you keep pace.
The Plan’s auto-escalation feature increases the amount of eligible compensation you contribute to the 401(k) Retirement Plan each year, automatically. If you are auto-enrolled in the Plan, your contributions will increase annually by 1%, until your savings reach 15% of your eligible compensation. If you are not auto-enrolled, you can choose the amount by which you’d like your contributions to increase each year. This feature is a simple way to support your long-term savings goals.
You can elect a different auto-escalation amount; or opt out of this feature and make contribution changes on your own at any time. Go to Fidelity NetBenefits to select your auto-escalation level.
You decide the percentage of pay that you would like to contribute to your account and how to invest your contributions and your account balance. Your account balance includes your contributions and any contributions made by NXP®, as adjusted for any investment returns or losses on these amounts.
You may increase or decrease the amount you contribute to the 401(k) Retirement Plan —and change the way your future funds are invested — at any time. Changes will go into effect as soon as administratively possible — generally within one or two pay periods. Keep in mind that if you reduce your contributions below 5% of eligible compensation, your NXP match will decrease as well.
You may transfer balances in your account among investment options and the self-directed brokerage account, at any time, within the guidelines of the trading policy .
Simply connect to Fidelity NetBenefits, 24/7, to make changes online or call NXP Retirement Service Center at 844-NXP-401K.
Although the purpose of the 401(k) Retirement Plan is to help you save for retirement, you have access to your funds through loans and, under some circumstances, withdrawals to meet more immediate financial needs.
Loans are available to help you meet your financial needs. Here’s what you need to know about the Plan loan provisions.
You may request a loan by visiting Fidelity NetBenefits or by calling NXP Retirement Service Center at 844-NXP-401K.
Withdrawals from your 401(k) Retirement Plan account are allowed only under specific circumstances. For more information on each of the options below, refer to the summary plan description (SPD), which can be found on Fidelity NetBenefits or call the NXP Retirement Service Center at 844-NXP-401K. You can also review your withdrawal options and request a withdrawal at Fidelity NetBenefits .
You are always 100% vested in your 401(k) Retirement Plan account. If you leave NXP for any reason, you can choose to take a distribution of all, or a portion, of your account balance.
Your Payment Options
Visit Fidelity NetBenefits for more information.
The 401(k) summary provides a high level overview of the 401(k) Plan.
The 401(k) summary plan description (SPD) provides you with useful information regarding the features of the 401(k) Plan.
This notice provides you with important investment information regarding your account in NXP’s 401(k) Retirement Plan.
The trading policy summarizes the trading restrictions within the 401(k) Plan.
Review your contribution options, the Roth in-plan conversion feature and see examples.
Review FAQs regarding contributions, annual IRS contribution limits, and In-Plan Roth Conversions.