Retirement Benefits

401(k) Plan

When you join the 401(k) Plan, your contributions and investment earnings all work toward the same goal – a secure financial future.

Eligibility

You are automatically enrolled at 6% of your salary in the 401(k) Plan approximately 30 days from your date of hire. You may change your contribution rate at any time. You are fully vested after 2 years of employment.

Growing Your Account Balance

Contributions: You can contribute 1-100% from your pay to the Plan (up to $20,500 for 2022). If you turn age 50 during the year, you can contribute an additional $6,500 to the Plan in 2022.

Roth 401(k): Allows you to save money in your retirement account through payroll deductions on an after-tax basis. This means that you pay current taxes in the year contributions are made, and withdrawals of earnings and contributions are income tax free, provided you are at least age 59 ½ and the account has been open for at least five years.

Employer Match: The company matches 100% of the first 1% you contribute, and 50% of the next 5% you contribute. That’s a potential match of 3.5% of your pay! Please note, you must be employed for at least 2 years to keep any company matching contributions.

Investments: You have a variety of investments to choose from. You can either “build your own portfolio”, select a “pre-built portfolio” which is an investment option that is based on your expected retirement age (called “Target Date Funds”), or you can select the plan’s professionally managed investment solution (called “Target My Retirement”).

To Manage Your Account or Enroll

Go to www.principal.com or contact the Principal Customer Service Center at (800) 547-7754