Page 46 - 2022 Insurity OE Guide FINAL

Principal 401(k) Plan

Group #808578

A 401(k) plan is a type of retirement plan featuring an investment account, which allows employees to contribute pre-tax
earnings to the account, while choosing from a number of different investment types. The amount you can contribute in a
given calendar year is determined annually by the IRS. This has the benefit of reducing your tax burden, as taxable income
is decreased while maximizing your investment potential.

Eligibility and Match

Employees may begin contributions to the 401(k) on your first day of employment with Insurity.

New employees are auto-enrolled in the standard Pre-Tax 401(k) option at 2.5%. Funds are invested in the age banded fund
until or unless the employee changes their fund selection.

We match 100% of the first 2.5% that an employee contributes. This includes both Pre-Tax and After-Tax Roth contributions.

Types of Contributions

O Pre-Tax O After-Tax Roth
O Pre-Tax Catch-up (for those as least age 50) O After-Tax Roth Catch-up (for those at least age 50)

Total of all contributions above are subject to IRS limits (noted below).

Vesting

The part of your account to which you always have a right is called your vested account.

O Rollover contributions – always 100% vested
O Employee contributions – always 100% vested
O Company contributions – will be fully vested after 3 years of service

2021 401(k) IRS Contribution Limits

O Employee Contribution – $19,500
O Catch-up Contribution – $6,500 (for those at least age 50)
Note: The 2022 maximum contributions have not been released by the IRS as of the date of this publication.

Once enrolled in the plan, any future changes are processed using the www.principal.com website. Changes made
on the Principal website will flow over to Insurity payroll via file feed.
Employees can login and see their full account information on the www.principal.com website including balances,
contributions funds, etc. at any time.

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