Overview

Stryker is committed to supporting your financial well-being — today and tomorrow. The Stryker Corporation 401(k) Savings and Retirement Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.

Key advantages:

  • Company match of 50% of the first 8% of your eligible pay that you contribute (or 50% of the first 6% if you’re in a sales representative role)
  • Opportunity for additional discretionary company contributions for non-sales representatives
  • Current tax savings
  • Tax-deferred investment growth
  • Wide range of investment choices
  • Convenient payroll deductions
Manage

Manage your account

Visit Vanguard to enroll or manage your plan account:

  • Enroll in the plan
  • Check your balance
  • Change your contribution rate
  • Manage your investments
  • Update your beneficiary
  • Use planning tools and calculators
  • Request or model withdrawals and loans
iconWhat if I don’t enroll?

You are immediately eligible upon your date of hire. If you don’t take any enrollment action—either enrolling yourself or opting out—within 90 days of becoming eligible, you will be automatically enrolled, and 3% of your eligible before-tax pay will be deducted and invested in the Vanguard Target Retirement Trust appropriate for you based on a retirement age of 65. Additionally, each March (or a month of your choice) the deferral rate will be increased by 1%, until the deferral rate reaches 15%. You may enroll at a higher rate, change the investment allocation or opt out of the 401(k) at any time after you receive your welcome letter from Vanguard.

You may change your contribution rate and investment elections at any time by calling 800-523-1188 or visiting Vanguard.

Your contributions

You may contribute between 1% and 75% of your eligible pay to your account, up to annual IRS limits. Eligible pay generally includes your salary, commissions and bonuses. See the Summary Plan Description for more information. In 2020, you may contribute on a pre-tax basis up to:

  • $19,500 if you are under age 50
  • $26,000 if you’re age 50 or older this year (which includes an additional $6,500 in catch-up contributions, made as a separate dollar amount election).
iconCatch up!

It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $6,500 using the 401(k) Catch-Up Contribution Form.

Before-tax vs. Roth after-tax

The Stryker Corporation 401(k) Savings and Retirement Plan gives you the flexibility to save for retirement in a variety of ways. You can make before-tax contributions, Roth after-tax contributions, or a combination of the two.

{COMCONTPRETAXROW}
Before-Tax Contributions Roth After-Tax Contributions
  • The money goes into your Plan account before taxes are deducted, so you keep more of your take-home pay.
  • Since you don’t pay taxes at the time you contribute, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).
  • The money goes into your Plan account after taxes are withheld.
  • In exchange for paying taxes now, both your contributions and any associated earnings can be withdrawn tax-free in retirement, provided you meet two requirements:
    • At least five years have elapsed since your first Roth contribution.
    • You are at least 59½ or the withdrawal follows death or total disability.

Stryker contributions

To help you reach your retirement planning goals, Stryker makes the following contributions to your account.

Company matching contributions

To support your retirement saving efforts, we match 50% of the first 8% of your eligible pay that you contribute (or 50% of the first 6% if you’re in a sales representative role). Eligible pay generally includes your salary, commissions and bonuses. See the Summary Plan Description for more information.

To receive a matching contribution, you must be employed on the last day of the plan year and must have at least 1,000 hours of service during the plan year. Matching contributions are calculated at the end of each plan year, and are credited to your account in the first quarter of the following year.

Here’s how the company match works:

401k

iconMeet the match!

Try to contribute at least 8% of your eligible pay that you contribute (or at least 6% if you’re in a sales representative role) to take full advantage of the match — otherwise, you’re simply missing out on free money. To change your contribution, visit the Vanguard website.

Discretionary company contributions

Depending on company performance, Stryker may make an additional discretionary contribution to your plan account — whether or not you choose to contribute. Sales representative roles are not eligible for discretionary company contributions.

Vesting

Vesting is another way of saying “how much of the money is yours to keep if you leave Stryker.” You are always 100% vested in your own contributions, including any investment gains and losses on the money. The vesting schedule for company contributions is shown below. Note that you receive a year of service for each calendar year in which you work at least 1,000 hours.

Years of serviceVesting percentage
Less than 20%
2 years20%
3 years40%
4 years60%
5 years100%
iconHave you named a beneficiary?

It’s important to designate a beneficiary to receive the value of your 401(k) account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit Vanguard or call 800-523-1188 to add or change a beneficiary.

Withdrawals and loans

The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit Vanguard or call 800-523-1188.

Think Before You Act

If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your financial future.

  • Taking money from your account now may lead to a smaller savings balance when you retire.
  • Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it even harder to get back on track.
  • If you take a plan loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.
  • If you withdraw before-tax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ or, age 55 if you have retired or left the company.

Tools & resources

Make the most of your retirement planning by taking advantage of these tools and resources:

iconVanguard Retirement Income Center

Use the Vanguard Retirement Income Center to access retirement calculators and toolkits to help you make informed investment decisions. If this is your first time, visit the Vanguard registration page to register your account. Your plan number is 090081.

iconFinancial Engines® Personal Online Advisor

Get an objective view of your investment portfolio and independent, online investment advice at no cost to you. Access by logging on to your Vanguard account.

iconLifeWorks Financial Planning Resources

LifeWorks (Username: stryker; Password: 4260) offers tips, tools and expert advice for personal budgeting, money management, saving and investing.

iconSummary Plan Description (SPD)

Plan provisions vary based on your role at Stryker, and the benefits are described in two separate SPDs:

Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges and expenses. Call 800-523-1188 for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Please read them carefully.

Investing involves risk, including the risk of loss.