From pretax contributions and a generous company match to Roth and after-tax options, the Lam 401(k) Plan can help you build the retirement savings you need to meet your goals.

Maximize Your Savings

Learn how to get the most from your money through the Lam 401(k) and other plans.

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What You Need to Know

  • You can grow your savings with free money from Lam. Lam Research contributes a match of up to 3% annually. The company will match half of the first 6% of your regular pay or bonus that you defer to the plan as pretax or Roth contributions.
  • Take advantage of your annual bonus to save for your future. In addition to making 401(k) contributions through regular payroll deductions, you can, with a separate election, contribute from 1% to 75% of your annual bonus, including any advance bonus payment. Lam will match half of the first 6% of your bonus that you defer to the plan as pretax or Roth contributions. That can give your retirement savings a big boost!
    • The bonus contribution percentage is calculated based on the gross amount of your bonus; however, Roth and after-tax contributions are deducted from your check after the bonus tax rate—which is higher than your regular tax rate—is applied. If your contribution election exceeds available pay, no deduction will be taken.
    • For example, in California, the bonus tax rate is approximately 45%, so your maximum Roth or after-tax bonus contribution to your 401(k) cannot exceed approximately 55%. You may want to look at how your last bonus payment was taxed to estimate how much tax you can expect on future bonus payments.
  • You choose how to invest your 401(k) balance. You have the flexibility to diversify your portfolio and select from investment options that range from more conservative to more aggressive, depending on your savings goals and risk tolerance.
  • You can take your 401(k) with you. It’s portable. If you leave Lam Research, you can take your account balance with you.
  • You can consolidate old 401(k) accounts. You can roll over any eligible savings from a previous employer into this plan to make managing your retirement savings a lot easier.
  • You can make “catch-up” contributions. If you make the maximum contribution to your 401(k) and are age 50 or older during 2020, you can make additional “catch-up” contributions of up to $6,500. 
  • Fidelity Investments administers the Lam Research 401(k) Plan. You can stop or change your contributions or change beneficiaries at any time by contacting Fidelity through netbenefits.com or by calling 800-835-5095. 

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Understanding Your Options

The Lam Research 401(k) Plan offers you four ways to build your savings, allowing you to choose when and how to pay taxes on your contributions and earnings, depending on your individual financial needs.

1. Pretax contributions

2. Roth contributions

3. After-tax contributions

Contribution Limits

The IRS sets limits on how much you can contribute to your 401(k) each year.

Contribution Type 2020 Limit
Overall 1%–75% of your pay
Pretax and/or Roth (combined) $19,500
Over age 50 catch-up:
Pretax and/or Roth (combined)
$6,500
After-tax $28,500

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Where to Learn More

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