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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 an easy, tax-advantaged way to save for your future financial needs.

Key advantages

One of the most important steps you can take today is to plan for your future financial security. A convenient and reliable way to build an income for your retirement is to participate in LPL Financial 401(k) Plan.

Manage

Manage your account

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

  • Enroll in the plan.
  • Check your balance.
  • Change your contribution rate.
  • Manage your investments.
  • Update your beneficiary.
  • Use planning tools and calculators.
  • Access forms and documents.
iconAm I eligible? What if I don’t enroll?

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. Visit the Empower Retirement website or call 888.411.4015.

Your Contributions

The LPL Financial 401(k) Plan provides you with the opportunity to save for retirement on a tax-advantaged basis. As a participant, you may elect to defer a portion of your eligible wages. In addition, LPL Financial provides matching contributions for employees that have completed six (6) months of service. Matching contributions have a 3 year vesting schedule. The plan also includes a Roth feature allowing you to contribute after-tax dollars to the plan.

What’s the difference between before-tax and Roth after-tax contributions?

Before-tax vs. Roth after-tax contributions

The LPL Financial 401(k) Plan gives you the flexibility to save for retirement in a variety of ways. You can make before-tax contributions, Roth after-tax contributions, or a combination of both.

Before-Tax Contributions Roth After-Tax Contributions
  • The money goes into your plan account before taxes are deducted, so you keep more of your take-home pay.
  • Because you don’t pay taxes at the time you contribute, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).
  • The money goes into your plan account after taxes are withheld.
  • In exchange for paying taxes now, both your contributions AND any earnings can be withdrawn tax-free in retirement, provided you meet two requirements for earnings:
    • At least five years have elapsed since your first Roth contribution.
    • You are at least age 59½ or the withdrawal follows death or total disability.

Keep in mind that company contributions are made on a before-tax basis, no matter which contribution type(s) you select.

iconCatch up!

It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $6,500 in 2021.

Company Contributions

To help you reach your retirement planning goals, LPL Financial makes the following company contributions to your plan account:

Company match contributions are allocated on a per-pay-period basis at a rate of 75¢ per $1.00 of employee contribution, with the match available on the first 8% of eligible wages. Contributions you make above 8% will receive no company match.

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

The value of your contributions, and any company contributions, will vary with investment gains and losses.

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 888.411.4015.

iconThink before you act

If you’re considering taking a withdrawal or loan from your plan 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 plan 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).

Tools & Resources

Make the most of your retirement planning by taking advantage of these tools and resources:

  • Empower Retirement – Access tools and education on your plan website to help you make informed investment decisions.
  • Plan Highlights – A brief description of the LPL Financial 401(k) Plan.

Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Call 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.