Make the most of your 401(k)
Take your money goals to the next level.
401(k) Retirement Savings Plan
Plan for retirement by contributing to the 401(k) Retirement Savings Plan, administered by Principal Financial Group, on a pre-tax or after-tax basis. It offers a wide variety of investment funds so you can choose what best meets your needs.
Enrollment
New hires are automatically enrolled in the Plan as of the first of the month after their date of hire with a 6% contribution. Once enrolled, your contributions will increase by 1% each year on the first pay date in January until you reach a maximum of 10% or your plan limit. Your contributions will automatically be invested into an age-appropriate target date fund.
Advantages of Contributing
The 401(k) Retirement Savings Plan helps you meet your financial goals with the following advantages:
- Tax savings on pre-tax contributions: You may contribute up to 100% of your salary up to the 2020 IRS Maximum of $19,500; if you are age 50 or older, you may make additional “catch-up” contributions of up to $6,500.
- 100% employer match up to 6% of employee contributions into the 401(k) plan. All matching contributions are 100% vested.
- Choice of investment funds.
- Convenient payroll deductions.
Receiving Benefits
Because 401(k) plans are designed for retirement savings, there are rules that specify when you can receive funds from the plan. Before age 59½, you may withdraw funds only if you:
- Leave the company
- Become disabled
- Experience a financial hardship
Any funds you receive before age 59 ½ may be subject to current taxes and possibly a financial penalty.
Loans
You are able to borrow from your 401(k) at an interest rate of prime +2%. The loan terms are as follows:
- Maximum of one loan
- $1,000 minimum/$50,000 maximum or 50% of your vested account balance
- Maximum loan term is five years for general use, 30 years for residential loans
Making Changes
You may change the amount you are contributing to your 401(k) and your investment allocations at any time, effective the first of the month, provided changes are received by the second pay date of the month. All changes are made at principal.com.
Plan Resources
- To learn more about your investment options, request a loan or initiate a rollover, log into your account at principal.com.
- You can also initiate a rollover by contacting a rollover specialist at 800.547.7754.
- It’s important to designate a beneficiary for your account! Learn more here.