Page 4 - American Century Executive Deferred Compensation Plan Enrollment Guide

Plan Highlights
Before you enroll, please review the following information to make sure you have a complete understanding of how the Plan works.
Contributions
You may elect, on an annual basis, to defer up to 100% of your base pay and/or incentive compensation of your eligible upcoming calendar year compensation (current calendar year compensation if your initial enrollment is mid-year). Please note your incentive compensation election applies to incentive compensation earned in the upcoming compensation year and paid through February of the following year. Your decision to make deferrals for a given year is irrevocable and cannot be changed until the open enrollment period for the following year. Your compensation deferred to the Plan will not be considered compensation for 401(k) contributions or calculating employer contributions to the Retirement Plan.
Taxation
Deferred compensation is subject to current Social Security, Medicare and other statutory employment taxes at the time it is deferred. Federal, state and local taxes will be withheld at the time of distribution.
Reminder: You may need to increase the percentage you contribute to the Retirement Plan.
Your 401(k) contribution is based upon your compensation after it has been reduced by this Plan’s deferral. Therefore, to maintain the same dollar contribution to your 401(k), you may need to increase the percentage you contribute.
Security of Assets
Account balances are not secured. They will be held as general assets of American Century Services, LLC and any of its affiliated companies (“American Century”). The funds will be available to creditors in the event of insolvency or bankruptcy. You will be considered a general creditor. The assets are held under a Rabbi
Trust and therefore will not be available for general corporate purposes unless American Century becomes insolvent.
Distributions
Generally, your contributions and their potential earnings will be paid upon your retirement, termination, death or disability. All distributions from the Plan will be treated as ordinary income subject to federal, state and local taxation at the time of
distribution. Distributions (including any investment returns credited to your account) will not be subject to Social Security or Medicare taxes. Distributions are not eligible for rollover into an IRA or another employer’s nonqualified or tax-qualified retirement plan.
Distribution Options
Upon your initial enrollment, you will be required to choose how distribution payments from the Plan will be made to you. You will choose between receiving a lump sum or installment payments in the event of termination/retirement and death/disability. In subsequent years, the Distribution Election will not appear as part of the enrollment process. Once a Distribution Election is made, you cannot change your Distribution Election unless certain requirements are met. Refer to the Plan Document (located in the For Your Plan box on the Overview page) for additional details, or call Jessica Ruona in the American Century Investments Human Resources Department at 816-340-3286.
You may elect to receive your distribution by the following methods:
• Retirement or Termination Election — You may choose to receive the amounts in a single lump sum or in annual installments ranging over a period of 2 to 10 years beginning when you retire or separate from service.
• Death or Disability Election — You may choose to receive the amounts in a single lump sum or in annual installments ranging over a period of 2 to 10 years upon your death or disability.
Note: Changes to your initial distribution elections will result in your distribution being delayed by at least 5 years. Per regulatory requirements, in order to change a previously elected distribution:
• The distribution commencement date must be at least 5 years beyond the original distribution commencement date.
• The election must be in place for at least 12 months after the date the distribution election form is submitted.
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