Page 6 - Latham & Watkins 401(k) Savings and Profit Sharing Plan

Partnership Contributions
Latham will make profit sharing contributions to 401(k) Plan accounts for eligible staff and Legal Professional and Paralegal employees. The
current partnership contribution is 7.5% of eligible compensation up to the Social Security Wage Base (SSWB) and 12.5% of any eligible compensation above the SSWB up to a maximum contribution
of $28,355. For 2021, the SSWB set by the IRS is $142,800.
To be eligible to receive the partnership contribution, you must complete six months of service and have reached your entry date (the first day of the month coinciding with or following your completion of six months of service). You must also be actively employed on the last day of the Plan Year (December 31) to receive the partnership contribution.
Partners are subject to different contribution requirements. Please refer to the Summary Plan Description for more details.
The partnership contribution is not taxable income when it is contributed to your account but will be considered taxable income at the time of distribution.
Overall IRS Limit on Contributions
The IRS limits the total amount that may be contributed each year to a 401(k) plan. All pre-tax 401(k) salary deferrals, Roth 401(k) contributions, voluntary after- tax contributions and partnership contributions, as applicable, cannot exceed $58,000 for 2021. For participants age 50 and older, the total IRS limit for 2021 is $64,500.
Vesting
Vesting refers to ownership of your account. You are always 100% vested in your own contributions and any attributable earnings, including any rollover contributions you make to your 401(k) Plan account.
You are also always 100% vested in any partnership contributions made to your 401(k) Plan account on your behalf.
Automatic Plan Provisions
You are encouraged to make your own election to contribute to the 401(k) Plan as well as how your account balance is invested. There are several automatic provisions in the 401(k) Plan to assist you in working toward your retirement and savings goals.
In addition to the Automatic Enrollment feature discussed above, the 401(k) Plan also contains “Automatic Savings Increase” and “Automatic Re-enrollment” features.
While these features are intended for your benefit, you have the continuing right to opt out of them.
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