Save automatically to work toward a secure retirement.
These common plans can streamline your retirement savings.
What does a 401(k) or 403(b) plan offer?
If your employer offers a 401 (k), 403(b), or a governmental 457(b) plan with services through Principal®, enroll online now.
If you’re already enrolled in a 401 (k), 403(b), or 457(b) plan with services through Principal, consider increasing the amount you contribute from each paycheck. Even a few extra dollars per paycheck may add up significantly over time—and it only takes a few minutes.
Log in to increase your contributions.
Contributions to a 401 (k), 403(b), or 457(b) plan that come out of your paycheck on a pre-tax basis reduce your taxable income. Potentially, this could push you to a lower tax bracket, too.
In 2024, the yearly contribution limit increased to $23,000,
When bills or debt feel overwhelming, it can be tempting to consider borrowing against your account in a 403(b), 401 (k), or 457(b) plan. But the trade-offs can be steep—and we want to make sure you understand them.
In the long run, you may pay more than the loan amount you withdraw, including:
In addition, you may miss out on some potential growth and compounding of your earnings, which can be a major advantage of long-term savings in an account under 401 (k), 403(b), or 457(b) plans.
To give you an idea, $20,000 in a 401 (k), 403(b), or 457(b) account could triple in 20 years at an average 7% rate of return—but not if you withdraw it today.