What Perkins&Will offers its employees for retirement savings

Perkins&Will, a global architecture and design firm, offers retirement benefits to its employees through a 401(k) plan. Like most large professional firms, the company uses this employer-sponsored retirement account as its primary retirement savings vehicle. The specifics of Perkins&Will's plan — including contribution matching, vesting schedules, and investment options — are detailed in the plan documents employees receive when hired.

As an architecture firm with offices across multiple countries, Perkins&Will structures its retirement offerings to comply with U.S. tax law for domestic employees. Employees in other countries may have access to different retirement arrangements based on local requirements. The information here covers the U.S. 401(k) structure only.

Key Takeaways

  • Perkins&Will uses a 401(k) plan as its main retirement savings option for U.S. employees, which allows you to contribute pre-tax income up to annual IRS limits.
  • The firm's matching contribution formula and vesting schedule are outlined in your plan documents, which you receive when you become may be able to access to enroll.
  • You choose your own investments from the menu of funds offered within the plan, and your contributions grow tax-deferred until withdrawal.
  • Perkins&Will employees can also use IRAs or other retirement accounts alongside the 401(k), though the 401(k) is the employer-sponsored option.

How the 401(k) plan works at Perkins&Will

When you enroll in Perkins&Will's 401(k), you decide what percentage of your paycheck to contribute, up to the annual IRS limit. For 2024, that limit is $23,500 for employees under 50, and $31,000 for employees 50 and older (the higher amount includes a catch-up contribution). These limits change each year based on inflation adjustments set by the IRS.

Your contributions are deducted from your paycheck before federal income tax is calculated, which lowers your taxable income for the year. The money grows inside the account without being taxed on gains, dividends, or interest until you withdraw it in retirement. Perkins&Will may also match a portion of your contributions — the exact percentage depends on the plan terms, which are in your Summary Plan Description.

You direct where your contributions are invested by choosing from the fund options available in the plan. These typically include target-date funds, stock funds, bond funds, and money market funds. You can change your investment selections at any time, and most plans allow you to rebalance quarterly or more often.

Vesting and employer matching at Perkins&Will

Vesting means the point at which employer contributions become yours to keep, even if you leave the firm. Perkins&Will's vesting schedule is set out in the plan documents you receive. Some firms use when ready vesting (you own the match right away), while others use a graded schedule (you own a percentage each year) or a cliff schedule (you own it all after a set number of years, usually three or four).

Your own contributions are always 100 percent vested — they belong to you when ready. Only the employer match is subject to a vesting schedule. If you leave before you are fully vested, you forfeit the unvested portion of the match, though you keep your own contributions and any earnings on them.

The firm's matching formula — for example, 50 percent of the first 6 percent you contribute, or 100 percent of the first 3 percent — is stated in your plan documents. If you are unsure of the exact terms, contact your human resources or benefits department.

Investment options and account management

Perkins&Will's 401(k) plan offers a range of mutual funds and possibly a self-directed brokerage option, depending on the plan design. You receive educational materials about each fund's strategy, risk level, and historical performance. The plan may also offer a target-date fund that automatically adjusts its mix of stocks and bonds as you approach retirement.

You can log into your account online to view your balance, change your contribution amount, rebalance your investments, or update your beneficiary. Most plans allow you to take a loan against your balance if you face a financial hardship, though loans must be repaid with interest or they become taxable withdrawals.

Withdrawal rules and tax treatment

Money in a traditional 401(k) cannot be withdrawn before age 59½ without a 10 percent early withdrawal penalty, plus income tax on the amount withdrawn. There are narrow exceptions: substantially equal periodic payments, disability, death, or certain hardships defined by the IRS. If you leave the firm, you can roll your balance into an IRA or another employer's 401(k) to avoid cashing it out.

Once you turn 59½, you can withdraw money without penalty, though you still owe income tax on the withdrawal. At age 73, you must begin taking required minimum distributions (RMDs) each year, calculated based on your age and account balance. If you do not take the RMD, the IRS charges a penalty.

If Perkins&Will offers a Roth 401(k) option, contributions go in after-tax, but withdrawals in retirement are tax-free. Roth accounts have the same early withdrawal penalties and RMD rules as traditional 401(k)s, but the tax treatment differs.

Comparing Perkins&Will's 401(k) to other retirement accounts

A 401(k) differs from an IRA in several ways. The 401(k) has higher annual contribution limits ($23,500 versus $7,000 for an IRA in 2024), allows employer matching, and offers a loan option. An IRA offers more investment choices and lower fees in many cases. You can have both: contribute to Perkins&Will's 401(k) and also open an IRA on your own.

If you are self-employed or own a side business, you might also use a SEP IRA or Solo 401(k) for that income. These accounts do not replace your 401(k) at Perkins&Will but work alongside it, subject to combined contribution limits set by the IRS.

Some employees use a Health Savings Account (HSA) for retirement savings if they enroll in a high-deductible health plan. HSAs offer triple tax advantages — contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free — but they can only be used for health costs before age 65.

What to do if you leave Perkins&Will

When you leave the firm, you have several options for your 401(k) balance. You can roll it into an IRA, roll it into a new employer's 401(k) if you move to another job, leave it in Perkins&Will's plan if your balance is above a certain threshold (usually $5,000), or cash it out. Cashing out triggers income tax and a 10 percent penalty if you are under 59½.

A rollover to an IRA or new 401(k) avoids taxes and penalties and keeps your money growing tax-deferred. You have 60 days from the date of distribution to complete a rollover, or you can ask the plan administrator to do a direct rollover, which moves the money without you handling it.

If your balance is small (under $5,000), Perkins&Will may force a distribution. You will receive notice of this and have time to arrange a rollover before the money is sent to you.

Frequently Asked Questions

Does Perkins&Will match 401(k) contributions?

Most large architecture firms offer some form of employer matching, but the exact formula varies. Check your Summary Plan Description or contact your benefits department to learn Perkins&Will's specific match percentage and any conditions you must meet to receive it.

Can I withdraw from my Perkins&Will 401(k) before retirement?

Withdrawals before age 59½ are subject to a 10 percent penalty plus income tax, with narrow exceptions for disability, death, or IRS-defined hardships. A loan against your balance may be available as an alternative. Review your plan documents or ask your benefits team about hardship withdrawal rules.

What happens to my 401(k) if I'm laid off?

Your vested balance remains yours. You can roll it into an IRA, roll it into a new employer's plan, or leave it in Perkins&Will's plan if your balance is large enough. Cashing it out triggers taxes and penalties unless you are 59½ or older or meet an exception.

Can I have both a Perkins&Will 401(k) and an IRA?

Yes. You can contribute to both in the same year, though your total contributions across all retirement accounts are subject to IRS limits. A traditional IRA contribution may not be tax-deductible if you are covered by a 401(k) and earn above a certain income threshold.

Where do I find my plan documents?

Your benefits department or HR team provides the Summary Plan Description when you enroll. You can also request the full plan document or view it on your plan's website. These documents contain the vesting schedule, matching formula, investment options, and withdrawal rules specific to Perkins&Will's plan.