Overview

LPL Financial is committed to supporting your financial wellbeing — today and tomorrow. The LPL Financial 401(k) Plan helps you prepare for retirement by offering a convenient way to save for your future financial needs.

Enrollment

You are immediately eligible upon your date of hire. If you don’t take any enrollment action — either enrolling yourself or opting out — you will be automatically enrolled, and 3% of your eligible pre-tax pay will be deducted each paycheck to be deposited to your 401(k) account. You may change your contribution rate and investment elections at any time on the Empower Retirement website.

 

Your Contributions

The LPL Financial 401(k) Plan permits pre-tax, Roth, and after-tax contributions. Pre-tax and Roth contributions are subject to a combined annual IRS contribution limit, which in 2022 is $20,500, or $27,000 if you’ll be age 50 or older by the end of the year. After-tax contributions are limited to $10,000 in excess of the pre-tax and Roth IRS limit annually.

More details about the different types of contributions can be found in this comparison of pre-tax, Roth and after-tax contributions, and in this video: Pre-Tax or Roth? How to decide what’s best for you.

In-Plan Roth Transfers

The plan offers in-plan Roth transfers, which allow you to convert pre-tax and after-tax vested account balances to a Roth account. By converting your contributions to Roth, earnings would not be taxable for qualified distributions at retirement. There are significant tax consequences associated with converting contributions to Roth so it is strongly recommended you consult your tax advisor before deciding to convert to Roth dollars. More details about in-plan Roth transfers can be found in this Q&A.

 

Company Contributions

To help you reach your retirement planning goals, LPL Financial matches pre-tax and Roth contributions for employees who have completed 6 months of service - after-tax contributions are not eligible for the match. Company matching contributions do not count toward the combined pre-tax and Roth IRS contribution limit – only your contributions count.

Company matching contributions are allocated per-pay-period at a rate of 75 cents per $1.00 you contribute, on up to 8% of your eligible wages.

To receive the maximum match available, you need to contribute 8% of your pay each pay period on a pre-tax and/or Roth basis. You do not receive a company match for pay periods in which you do not contribute.

Here’s how the company match works

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Vesting

Vesting is another way of saying “how much of the money is yours to keep if you leave the company.” You are always 100% vested in your own contributions, including any investment gains and losses on the money.

You’ll become vested in company-matching contributions over a three-year period.

  • 1 year of service – 30% vested
  • 2 years of service – 60% vested
  • 3 years of service – 100% vested
 

Name a Beneficiary

It's important to designate a beneficiary to receive the value of your 401(k) account in the event you die before receiving your benefit. As personal circumstances change, be sure to keep that information up-to-date. Visit the Empower Retirement website to add or change a beneficiary.

 

Withdrawals & Loans

The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit the Empower Retirement website or call 1-888-411-4015.

Think before you act

If you’re considering taking a withdrawal or loan from your account, be sure to think about the impact it may have on your financial future:

  • Taking money from your account now may lead to a smaller savings balance when you retire.
  • Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it even harder to get back on track.
  • If you take a plan loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.
  • If you withdraw before-tax money from your account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left the company).
 

Manage your account

Visit the Empower Retirement website to enroll or manage your plan account:

  • Enroll in the plan.
  • Check your balance.
  • Manage your investments.
  • Update your beneficiary.
  • Use planning tools and calculators.
  • Access forms and documents.

Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Call 1-888-411-4015 for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Please read them carefully. Investing involves risk, including the risk of loss.