Retirement
What does retirement look like for you? Maybe you plan to travel the world. Or maybe you’d like to take up some hobbies closer to home. Whatever your goal, it’s important to plan for your own finances so you have the income you’ll need in the future.
One of the best ways to ensure a secure retirement is to start saving as early as possible. Our 401(k) savings plan allows you to save for retirement on a pretax basis. You can begin contributing to the plan at any time once you become eligible and can start making contributions to your account through convenient payroll deductions.
Who is Eligible for the 401(k)?
Employees who are 21 years old, work 500 hours within a 12-month consecutive service period, and have 1 year of employment.
How Do I Enroll in the 401(k)?
You can enroll in the retirement savings plan by visiting Principal’s website and registering with your personal information. Once registered, you’ll be able to select your contribution percentage.
Increase Your Retirement Savings with a 401(k)
- UDT has a safe harbor matching contribution of 100% of the first 1% you save from your paychecks, plus 50% on the next 5% that you save. To receive the maximum match of 3.5%, you will need to save 6% from your paycheck. You become fully vested in the match after 2 years of service.
- Employees are auto-enrolled at 3% by the end of the pay period if they do not set their contribution amount.
- Contribute using convenient payroll deductions up to the IRS limit of $24,500 per year.
- Change the amount of your contributions or stop your payroll contributions at any time.
- Decide how to invest your 401(k) or allow the plan to choose for you.
- The 401(k) contribution limit for employees age 50 or older is $32,500 per year.
- The 401(k) contribution limit for employees age 60-63 is $36,000 per year.