Adobe 401(k) match, vesting and fees

The Plan has an automatic enrollment feature for new and re-hired employees. The provision provides that in the absence of a participant’s written election, a fixed percentage of the participant’s compensation will automatically be contributed. The percentage of the participant’s eligible compensation that will be contributed on a before tax basis will be 6% with an annual automatic increase of 1% up to a maximum contribution of 65%. Effective January 1, 2008, for any employee automatically enrolled in the Plan after the effective date, the Plan allows the option to withdraw all payroll deferrals within 90 days of the first deferral. The withdrawal is not subject to an early withdrawal penalty, and any employer contributions associated with the withdrawal deferrals will be forfeited. While interns remain eligible to participate in the Plan, the Plan document excludes interns from the automatic enrollment feature. Effective December 1, 2022, as previously discussed, international transfers returning to the United States who were previously eligible for the Plan and are eligible upon transfer back to the United States are excluded from the auto enrollment provision in addition to interns.

Participants may elect to make pre-tax 401(k) contributions and after-tax Roth 401(k) contributions.

The Plan allows participants to borrow not less than $1,000 and up to the lesser of $50,000 minus the highest outstanding balance of all notes receivable from the Plan during the 12-month period prior to the notes receivable date or 50% of their vested account balance. The notes receivable are secured by the participant’s vested balance. The Plan’s Participant Loan Administration Policy allows a participant to have up to two general purpose loans outstanding at a time.