401(K)

Your Contributions

Through payroll deductions, you can make pre-tax or Roth contributions up to a maximum election of 80% of your eligible pay. There is no minimum amount that you must elect to contribute. Deferral election changes can be done at any time through your Principal account.

For 2026, the total employee contribution limit to all plans for those under 50 years of age will be $24,500. The catch-up contribution limit increased to $8,000.

Plan contribution share in investment earnings or losses. You don’t pay taxes on any earnings until later –when you receive that money. If you choose Roth deferral contributions, earnings on such contributions will not be taxable if received in a qualified distribution.

Pre-tax and Roth contributions that are deferred from your compensation are subject to the dollar limit for the calendar year as provided by law. For 2026, the maximum dollar limit (of $24,500) applies to the aggregate of all amounts that you contribute to this plan and all other 401(k), 403(b) and SEPs of this employer or any other employer during the calendar year.

If you reach 50 sometime during the calendar year, you are also eligible to make catch-up contributions of $8,000 in addition to the normal annual limit. Effective January 2026, participants who attain the ages of 60-63 as of the close of the taxable year can contribute an additional catch-up amount up to $11,250. At age 64, the catch up contribution returns to the regular catch-up limitation. Additionally, the Secure Act 2.0 requires plan participants with prior year FICA wages over $150,000 (adjusted for inflation) to make age based catch-up contributions on a Roth basis only.