Whatever your retirement goals—lots of travel, starting a new business, doting on your loved ones—your Adobe 401(k) can help you get there.
How to enroll
Employees are enrolled automatically in the 401(k) plan, with a pretax paycheck deferral of 6%, within approximately 30 days of your hire date. Your contributions will be invested in a Vanguard Target Retirement Trust based on your age. After that, your contribution will be increased automatically by 1% every March.
Interns are not automatically enrolled but can choose to participate by registering and opting in at vanguard.com.
International transfers returning to the U.S. are not automatically enrolled, but can choose to participate by restarting deferrals at vanguard.com.
First-time International transfers to the U.S. are automatically enrolled but can make changes or opt out at vanguard.com.
Enrolling sooner
To begin your paycheck deferrals in advance of automatic enrollment, visit the Vanguard 401(k) website, and follow these steps to enroll [PDF]. (It may take a week after your hire date for your information to be available at Vanguard.)
Opting out
To opt out of Adobe’s 401(k) plan, visit the Vanguard 401(k) website, and follow these steps to opt out [PDF].
You can also change your elections or opt out anytime by visiting the Vanguard 401(k) website or calling 800-523-1188 (Adobe plan number 096204).
What you can contribute
You can defer 1%–65% of your eligible pay. In 2023, the IRS limit for pretax and/or Roth after-tax contributions is $22,500 (including contributions made to a 401(k) through a previous employer).
2023 401(k) annual contribution limits
| Pre-tax and/or Roth after-tax contributions (402g limit) | $22,500 |
| Adobe company maximum match* | $9,900 |
| Traditional after-tax contributions | $33,600 |
| IRS maximum contribution limit total (415 limit) | $66,000 |
*Based on IRS-eligible annual compensation maximum
If you’re age 50 or over, you can contribute an additional $7,500 in catch-up contributions. In addition, you can defer up to $33,600 in traditional after-tax contributions for a maximum contribution limit of $73,500.
Use Vanguard’s savings limit calculator to help you determine what payroll deferral percentage to elect to reach this year’s maximum. Payroll contributions are calculated in a set order. Refer to this article on Inside Adobe to see the effect of your 401(k) deferral percentage on your other paycheck deductions.
Rollover contributions
You can roll over your account from a previous employer's 401(k) plan by following these steps to start a rollover [PDF].
Matching contributions
For each $1 you add as pretax or Roth after-tax contributions to your 401(k), Adobe will contribute 50 cents, up to 6% of your eligible pay, each pay period. If you contribute more than 6% of your pay, Adobe matches 3% of your annual compensation, up to the IRS-eligible annual compensation maximum of $330,000. All company contributions are completely vested.
To make sure you can take full advantage of the company match even if you reach your IRS contribution maximum of $22,500 before the end of the year, Adobe provides a year-end true-up. So, for example, if you contribute your full-year amount in the first quarter to maximize the annual earnings potential in your 401(k), Adobe will make up the per-pay-period match that you don’t receive for the remaining three quarters. To receive the true-up (which occurs in late February), you must be an active employee on December 31.
Company match examples
True-up example
Your investment options
Choose the plan’s funds
Vanguard provides a number of investment funds so you can build a portfolio that meets your needs.
If you’re not sure where to begin, consider a Target Retirement Trust. You select a fund named for a year close to when you expect to retire, and that fund’s mix of stocks, bonds and other investments automatically becomes more conservative as the target year approaches.
Learn about your investment options. To choose your investments, call Vanguard at 800-523-1188, or log in to your account.
Invest on your own
The Adobe 401(k) plan offers a self-directed brokerage option through Charles Schwab, where you have access to thousands of investment choices. Keep in mind that the risks are substantially higher with any brokerage strategy and that you’ll be responsible for paying commissions and other costs.
To register your account:
- Log on to your retirement plan account at vanguard.com/retirementplans.
- If you have multiple accounts at Vanguard, select Employer plans.
- Select Manage my money.
- Select Manage my brokerage option.
If you have questions, call Charles Schwab at 888-393-7272.
Environmental, social and governance (ESG) investing
You may want to incorporate environmental, social and governance (ESG) factors into your investment decisions. Just be aware that ESG investing may involve lower returns and greater risks than traditional investing, due to the more limited universe of available stocks and the fact that financial performance is not the sole consideration of the investment managers.
You have two options for ESG investing for your 401(k) account:
- Vanguard FTSE Social Index Fund: Available within Adobe’s core investment menu, this fund seeks to track the performance of the FTSE4Good US Select Index. View the fund overview for more information.
- The self-directed brokerage option: As described above, you may direct your own investments through Charles Schwab. Use the Mutual Fund Screener to view and select socially responsible funds based on your criteria.
To learn more about ESG investing, check out the Vanguard ESG investing guide and the Morningstar ESG fund screener.
Get investment advice
Whether you just want a little guidance or prefer ongoing investment management, Vanguard offers options to find the help that’s right for you.
Situational Advisor: one-time meeting
Digital Advisor: online advice
Personal Advisor: ongoing advice
After-tax and Roth conversion
Traditional after-tax contributions
Traditional after-tax contributions allow you to contribute above the IRS limit for pretax and Roth after-tax contributions. You can make traditional after-tax contributions at any time—either while making pre-tax and Roth contributions or starting after reaching the pretax and Roth after-tax IRS limit. If you choose to start after-tax contributions, after you’ve reached the IRS limit for pretax and Roth after-tax, you can have your 401(k) payroll contributions automatically converted to traditional after-tax money by selecting the automatic redirect option.
- Traditional after-tax contributions are not matched by Adobe.
- You will not owe taxes on a withdrawal of your traditional after-tax contributions, but you’ll owe taxes on the earnings.
To learn more, visit the Vanguard site. Begin making traditional after-tax contributions anytime in your account.
Roth in-plan conversions
You can convert all or a portion of your pretax and/or traditional after-tax savings to Roth money within the 401(k) plan; you can even set up automatic conversions. You’ll owe ordinary income tax on the pretax money converted to Roth in the tax year of the conversion. If you convert after-tax money to Roth, you’ll owe taxes on the earnings in the year in which the conversion is made (unless you setup auto conversion). Taxes must be paid from assets outside of the 401(k) plan.
- Roth money, including any earnings, can be withdrawn tax-free if you’re age 59½ or older and the Roth account has been established for at least five years. Tax-free withdrawals can be a significant benefit in retirement.
- You’ll be responsible for paying any taxes on a distribution or withdrawal from pretax 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’re at least age 59½.
- Early withdrawals may be subject to a 10% federal penalty. Vanguard will make the appropriate tax withholding, as required. 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 at 800-523-1188.
Your 401(k) plan if your company was acquired
If your company was acquired by Adobe, you’ll have approximately 12–24 months to access your old 401(k) account and allocate investments, but you won’t be able to roll over assets or request an account distribution until a plan audit with a favorable determination has been completed by the IRS, which typically takes 12–18 months.
Following the plan audit and receipt of a favorable determination from the IRS, 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 may 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 provider.
Be sure your contact information is up to date so you receive notifications about your account and actions you have to take. See below for address-update directions for your plan.
Here’s the status of the 401(k) plans for recently acquired companies.