The deferred compensation plan (DCP) is a voluntary program that allows participants to set aside eligible cash in a tax deferred vehicle for retirement or other life event purposes. This DCP allows you to elect to receive certain income in a future year that would otherwise be paid to you in the upcoming year. This means that these amounts are not subject to federal income tax at the time of contribution into the plan.
The deferred compensation plan is another way to boost your savings—it lets you save tax-deferred money beyond the annual 401(k) contribution limits.
Who is eligible and how to enroll
U.S. director-level employees and above, and employees in equivalent positions are eligible. Participants may enroll during the annual open enrollment window or within 30 days of eligibility for promotions and new hires. For 2023, the open enrollment window was in November 2022. If you’re already enrolled in the DCP, you must re-enroll—elections do not automatically roll over from year to year.
During an open enrollment window (or within 30 days of eligibility), visit the DCP enrollment site (SSO) to enroll or re-enroll.
Call Nolan Financial at 877-230-2432 or email firstname.lastname@example.org for assistance.
What you can contribute
You can contribute cash from your:
- Base salary (5%–75%)
- Commissions (5%–100%)
- Annual Incentive Plan (AIP) bonus (5%–100%)
Should you elect to defer a percent of your AIP bonus, your deferral election will apply to your AIP bonus earned in the fiscal year following the year of your election. If you become newly eligible to participate in the DCP after May 1, you must wait until the following annual open enrollment period to make your AIP election.
Deferral elections are irrevocable for the year elected, and cannot be changed. Payroll contributions are calculated in a set order. Refer to this article on Inside Adobe to see the impact of your DCP deferral percentage on your other paycheck deductions, such as the 401(k) and the ESPP.
Your investment options
You may allocate your Deferred Compensation Plan (DCP) balance across a diversified menu of investment alternatives. Although there are some differences, the options are closely aligned with the investments available in the Adobe 401(k) Retirement Savings Plan. View the DCP investment options [PDF] and DCP Quarterly Morningstar Investment Fund Facts [PDF]. You may update your DCP investment choices at any time at NolanLink.com.
Your payment options
At the time of your enrollment, you may elect future scheduled distribution dates for your deferrals to be paid while still employed, in the form of lump sum or annual installments over five years. You also have the opportunity to designate an employment termination distribution election, which will be applied should you leave Adobe for any reason in advance of your scheduled distribution date (if elected). This termination election may be in the form of a lump sum payment, or annual installment payments over five, ten, or fifteen years. Distribution payments occur the earlier of your elected scheduled distribution date, or upon your employment termination.
Adobe does not make matching contributions to your DCP.