401(k) plan

Saving for the future takes focus and planning. When it comes to achieving financial security, set-it-and-forget-it is not an option. Whatever your ultimate retirement goals are—lots of travel, starting a new business, doting on your loved ones—take full advantage of your benefits to help you get there.

Who is eligible and how to enroll

All U.S. employees and interns are eligible on their first day of work. Within 60 days of your hire/rehire date, all employees will be automatically enrolled in Adobe's 401(k) plan. Interns are not automatically enrolled, but can choose to participate.

  • You may choose your own contribution rate and investments.
  • If you don't choose a rate or specific investments prior to your first payroll deduction, you'll be automatically enrolled at 6 percent in a Vanguard Target Retirement Trust based on your age.
  • Through Vanguard's One-Step Save Program, your contribution will be automatically increased by 1% every March.

Participation is voluntary. Visit vanguard.com to:

  • Opt out within 60 days of your hire date, or any time thereafter
  • Change how much you contribute to the plan
  • View and manage your account

You can also enroll by calling 800-523-1188. Adobe’s plan number is 096204. Please note: It can take 7-10 days from your hire date for your information to become available in Vanguard’s database.

The Adobe 401(k) informational website can also help you make the right decisions for you.

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What you can contribute

You can contribute 1 percent to 65 percent of your eligible pay, subject to IRS limits. The IRS limit for 2018 is $18,500. If you are age 50 or over, you may contribute an additional $6,000 in catch-up contributions.

Save in the 401(k) on traditional pre-tax basis, in an after-tax Roth 401(k) or a combination of both.

You may roll over any old retirement savings accounts to the Adobe 401(k) plan.

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Matching contributions

To help your savings go even further, Adobe matches 50 percent of the first 6 percent that you contribute as regular pre-tax and Roth 401(k) after-tax salary deferral contributions each pay period. That means that for each $1 you contribute to your 401(k), Adobe will contribute 50 cents, up to 6 percent of your eligible pay (the IRS-eligible annual compensation maximum in 2018 is $275,000). If you contribute more than 6 percent of your eligible pay, Adobe matches 3 percent of your annual compensation.

Examples of how the company match works

If your annual compensation is $100,000 and you contribute 6 percent of your pay to your 401(k):

  • $100,000 annual compensation x 6 percent deferral x 50 percent Adobe match = $3,000 in matching contributions from Adobe per year

If your annual compensation is $150,000 and you contribute 10 percent of your pay to your 401(k):

  • $150,000 annual compensation x 3 percent (if you contribute more than 6 percent, Adobe matches 3 percent of your compensation) = $4,500 in matching contributions from Adobe per year

If your annual compensation is $300,000 and you contribute 6 percent of your pay to your 401(k):

  • $275,000 IRS annual compensation max x 6 percent deferral x 50 percent Adobe match = $8,250 in matching contributions from Adobe per year

Adobe offers an annual year-end true-up provision to make sure you can take full advantage of the company match even if you reach the IRS contribution maximum ($18,500 in 2018) before the end of the calendar year. For example, you may reach the contribution maximum if you had a bonus paid out at the start of the year, or if you contribute more in the first quarter to maximize the annual earnings in your 401(k). To be eligible for true-up funding, you must be an active employee on Dec. 31. All company contributions are subject to a three-year vesting schedule based on your Adobe hire-date anniversary.

Example of how the true-up works

If your annual compensation is $150,000 and you contribute 20 percent of your pay to your 401(k), you would reach the IRS contribution limit of $18,500 on the 16th pay period, in August. With the true-up, you still get the company match for the remaining four months of the year:

  • $150,000 annual compensation x 3 percent (since you’re contributing more than 6 percent of your pay) = $4,500 maximum matching contribution
  • $4,500 maximum matching contribution – $2,769.28 match already received (your per-pay-period company match of $173.08 x 16 pay periods from Jan. to Aug.) = $1,730.72 true-up amount

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Your investment options

You can choose a Target Retirement Trust, which chooses the level of risk in your portfolio based on an estimated retirement age of 65, or you can create your own portfolio by selecting from our lineup of Core Investment Funds. Learn about your options.

Vanguard Brokerage Option

Through a Vanguard Brokerage Option account you can have access to thousands of mutual funds from hundreds of fund families. You can also put some of your Retirement Plan assets in individual stocks, bonds and exchange-traded funds. Keep in mind that the risks are substantially higher with this strategy and that you will be responsible for paying commissions and other costs.

Brokerage associates are available to answer your questions: Call 800-992-8327 (Monday–Friday, 8 a.m.–10 p.m. ET, Saturday, 9 a.m.–4 p.m. ET.)

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Optional plan features

Traditional After-Tax Contributions

Traditional after-tax contributions offer an alternative to the pre-tax and Roth 401(k) after-tax contributions available in the Adobe 401(k) Plan and allow you to contribute above the IRS contribution limit for pre-tax and Roth 401(k) after-tax contributions.

Note: Traditional after-tax contributions are not eligible for company matching contributions.

Like Roth contributions, traditional after-tax contributions are made with after-tax dollars. You will not owe taxes on a withdrawal of your traditional after-tax contributions. However, you will owe income taxes on the portion of the withdrawal that represents earnings on those contributions (as well as a 10 percent federal penalty tax if you are under age 59½).

To learn more, visit the Vanguard site. You can begin making traditional after-tax contributions at any time. To do so, log on to your account.

Roth In-Plan Conversions

The Roth in-plan conversion feature allows you to convert all or a portion of your pre-tax and/or traditional after-tax savings to Roth money within the 401(k) Plan. You will owe ordinary income tax on the pre-tax money converted to Roth in the tax year of the conversion. If you convert after-tax money to Roth, you will owe taxes on the portion of the conversion that represents earnings for the year in which the conversion is made. Taxes must be paid from assets outside of the 401(k) Plan.

Roth money, including any earnings, can be withdrawn tax-free if you are age 59½ or older and the Roth account has been established for at least five years. Tax-free withdrawals could be a significant benefit in retirement.

You will be responsible for paying any federal, state, local or foreign taxes on a distribution or withdrawal from pre-tax accounts. A distribution or withdrawal of Roth 401(k) earnings is usually also taxable unless the initial Roth contribution was made more than five years ago and you are at least age 59½. Early withdrawals may be subject to a 10 percent federal penalty tax. To the extent required by law, Vanguard will make the appropriate withholding for tax purposes. We recommend that you consult a tax advisor before taking any action.

To learn more, visit the Vanguard site. To elect a Roth in-plan conversion, call Vanguard Participant Services at 800-523-1188 (Monday–Friday, 5:30 am–6 pm PT).

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Your 401(k) plan if your company was acquired

If your company has been acquired by Adobe, you’ll have a period of approximately 12–18 months after the acquisition when you can access your old 401(k) account and continue to allocate investments, but you won’t be able to roll over assets or request an account distribution.

Once your account assets have been distributed from your old 401(k) plan, you can do one of the following:

  • Roll over your account assets into Adobe’s 401(k) plan at Vanguard.
  • Roll over your account assets to an individual retirement account (IRA).
  • Request an account distribution, which will be subject to taxes and early withdrawal penalties.

If your employment ends, you can immediately initiate a rollover or account distribution by contacting the plan’s record keeper.

To update the address on your account:

  • If you’re an active Adobe employee, your address is updated through Workday on a weekly basis.
  • If you’re a terminated employee, you can update your address through the provider’s website or call center. Be sure to update your contact information regularly, so you can receive notifications about your account assets and actions you have to take.

Here’s the status of the 401(k) plans for recently acquired companies:

Mixamo

  • 401(k) provider: Paychex, 877-244-1771
  • Status: Favorable determination has been received by IRS.  Participants must take action to move funds from the plan before February 28, 2018.

Livefyre

  • 401(k) provider: Fidelity, 800-835-5095, Plan Number 49676
  • Status: Filed with IRS for favorable determination upon plan termination and awaiting response from IRS.

TubeMogul

  • 401(k) Provider: Fidelity, 800-835-5095, Plan Number 20645
  • Status: Filed with IRS for favorable determination upon plan termination and awaiting response from IRS.