401(k) Plan

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.

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 2024 is $23,000, or $30,500 if you’ll be age 50 or older by the end of the year. The LPL plan also allows traditional after-tax contributions up to $25,300 annually in excess of the combined pre-tax and Roth IRS limit. Traditional after-tax contributions are not eligible for the LPL match.

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.

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

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

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.

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.

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.