Page 5 - Latham & Watkins 401(k) Savings and Profit Sharing Plan

Catch-Up Contributions
If you will be age 50 or older by the end of the calendar year, you may make additional contributions as either pre-tax 401(k) salary deferrals or Roth 401(k) contributions to the 401(k) Plan. The IRS sets this limit each year; for 2021, the limit for catch-up contributions is $6,500.
Voluntary After-Tax Contributions
You may also make voluntary after-tax contributions of up to 100% of your eligible compensation, above and beyond your pre-tax 401(k) salary deferrals and Roth 401(k) contributions, subject to limitations set by the IRS. Unlike Roth 401(k) contributions, you will still owe federal or state income taxes on any earnings when you take a distribution of your voluntary after-tax contributions. This option offers you the opportunity to potentially have more savings for
In-Plan Roth Transfer
You also have the opportunity to convert (transfer) some or all of your pre-tax or voluntary after-tax account balance into Roth 401(k) after-tax dollars. Any taxes are due in the year of conversion, and any converted money will share the same tax benefits as the Roth 401(k) contributions described above, as long as the following requirements are met:
• The distribution from your Roth 401(k) conversion account occurs at least 5 years following the year of conversion, and
• You are at least age 591⁄2 or have become disabled.
At death, amounts held in your Roth 401(k) contributions account are not subject to federal or state income taxes to your beneficiary.
Merit Bonus Deferral Elections
When you enroll in the 401(k) Plan, you may make
a separate election to contribute up to 100% of any merit bonus compensation you may become eligible to receive into the 401(k) Plan. The contributions you make from your merit bonus compensation can be designated as pre-tax 401(k) salary deferrals, Roth 401(k) contributions or voluntary after-tax contributions.
Changes
You may make changes to your contribution
rates at any time. These changes can be made
at workplace.schwab.com or by calling +1.800.724.7526. Contribution rate changes will become effective as soon as administratively possible, usually the next full payroll period.
your future.
The contribution limits described above apply to all 401(k) and 403(b) plans that you may participate in during the year. If you participated in a 401(k) or 403(b) plan sponsored by another employer, it is your responsibility to make certain that your contributions do not exceed the annual limits. Please contact your previous employer to obtain the total elective contributions made to your previous employer retirement plan.
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