Page 4 - Latham & Watkins 401(k) Savings and Profit Sharing Plan

401(k) Plan Highlights
Most of your retirement income will likely come from the savings you accumulate during your working years. The 401(k) Plan can help you build your retirement savings and stay on track toward your retirement and savings goals.
The following sections are intended to give you an overview of the major provisions of the 401(k) Plan. For more detail on any of these topics, please refer to the Plan Summary on workplace.schwab.com > Learn about your 401(k) Plan located on the home page.
Eligibility and Automatic Enrollment
You are immediately eligible to participate in the 401(k) Plan if you are paid from the US payroll. Partners of Latham are subject to different rules.
You will be automatically enrolled at a 6% pre-tax deferral rate as soon as administratively possible following your date of hire. This rate will apply to both your regular pay and any merit bonus compensation you may become eligible to receive. When you are automatically enrolled, your contributions will be invested in the Vanguard Target Retirement Trust based on the year in which you will turn age 65, as determined by the 401(k) Plan. The Vanguard Target Retirement Trusts have been designated by the Latham 401(k) Plan Administrator as the “Qualified Default Investment Alternative” for the 401(k) Plan.
Your Contributions
Pre-Tax 401(k) Salary Deferrals
You may elect to have some or all of your contributions made to the 401(k) Plan as pre-tax 401(k) salary deferrals. If you elect to make pre-tax 401(k) salary deferrals, you will not pay any current federal or state income tax on your contributions. Federal and state income taxes on your contributions (as well as any applicable earnings) will be deferred until you take a taxable distribution from the 401(k) Plan.
Roth 401(k) Contributions
You may elect to have some or all of your contributions made to the 401(k) Plan as after-tax Roth 401(k) contributions, which will be deducted from your paycheck on an after-tax basis. The result is that you will not pay any federal or state income taxes when you take a distribution from your Roth 401(k) account, including any earnings, as long as the following requirements are met:
• The distribution from your Roth 401(k) account occurs at least 5 years following the year you make your first Roth 401(k) contribution to the 401(k) Plan, and
• You are at least age 591⁄2 or have become disabled.
Upon your death, amounts held in your Roth 401(k) contributions account are not subject to federal or state income taxes to your beneficiary, but may be subject to estate tax.
401(k) Plan Contribution Limits
You may contribute up to 100% of your eligible compensation into the 401(k) Plan. The IRS limits the total dollar amount of pre-tax 401(k) salary deferrals and your Roth 401(k) contributions you can contribute each year. For 2021, the IRS limit is $19,500.
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