Page 8 - Latham & Watkins 401(k) Savings and Profit Sharing Plan

Loans
You may borrow from your vested 401(k) account balance. Loan repayments are made through salary deductions each pay period.
• The minimum loan amount is $1,000.
• The maximum is 50% of your vested balance, up to a maximum of $50,000, less your highest outstanding loan balance over the 1-year period ending the day before your next loan is made.
• There is a one-time fee of $75 on each new loan.
• The interest rate for the loan is the Prime rate at the time the loan is taken plus 1%.
• Two outstanding loans are allowed at a time.
• The maximum term is 5 years for a general loan and 10 years for a residential loan.
• Additional payments on existing loans are permitted. The additional payments must be in exact multiples of your regular loan payment and will be applied to both principal and interest.
• Participant loans may be repaid in full without penalty at any time.
In-Service Withdrawals
During your employment with Latham, you may withdraw:
• All or a portion of your voluntary after-tax contributions and rollover contributions regardless of your age.
• All or a portion of your partnership contributions, if you are at least age 55.
• All or a portion of your pre-tax 401(k) salary deferrals and your Roth 401(k) contributions, if you are at least age 591⁄2.
Withdrawals are subject to any applicable taxes and possible penalties.
Financial Hardship Withdrawals
The IRS has defined acceptable reasons for financial hardship withdrawals. The expenses must be immediate and cannot be met through any other sources. The following are the acceptable reasons for financial hardship withdrawals:
• Medical or dental expenses for you, your spouse, or dependents
• Purchase of your primary residence
• Payment of tuition and related educational fees for the next 12 months of post-secondary education for you, your spouse, or dependents
• Payments necessary to prevent eviction from your primary residence or foreclosure on the mortgage of your primary residence
• Payments for burial or funeral expenses for your deceased parent, spouse, children, or dependents
• Expenses for the repair of damage to your principal residence that would qualify for the casualty deduction under IRC section 165
• Payments to cover certain expenses and losses incurred as a result of a federally declared disaster
The IRS also requires that you have taken all available distributions from your 401(k) Plan, and you must also take all loans available through the 401(k) Plan before a hardship withdrawal is allowed.
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