Page 21 - PriMed 2022 Benefits Guide

401(k) Retirement Plan

Preparing for retirement is a top priority of smart financial planning.
PriMed sponsors a 401(k) Plan through Principal Financial Group to help
you start saving now. Principal offers a variety of investment options to Keep Track of Your
grow your earnings and PriMed generously matches employee 401(k) 401(k)
contributions to boost your savings.
Principal Financial Group
Eligibility Call (800) 547-7754

You are eligible to participate in the 401(k) plan beginning the first of the
Online at www.principal.com
month following or coinciding with date of hire at PriMed. When eligible,
you may enroll in the 401(k) plan, designate beneficiaries, and allocate
your asset distribution.

PriMed Match
PriMed will match employee contributions dollar-for-dollar up to the first 6.5% of your salary.

Vesting Schedule

Effective January 1, 2019

Years of Vesting Service Vesting Percentage 401(k) at a Glance
 In 2022, you may contribute up to 80% of your
1 20%
compensation up to the IRS maximum of
2 40%
$20,500.
3 60%  If you are age 50 or over, you can make “catch-

4 80% up” contributions up to $6,500.
 PriMed will match every dollar you contribute
5 or more 100%
up to the first 6.5% of your annual salary.

Advantages of a Roth 401(k)
Traditional 401(k) contributions are pre-tax, so you don’t pay taxes until you withdraw the money in
retirement. Roth 401(k) distributions are post-tax, so you pay taxes during the year when you make
contributions, but you don’t pay taxes when you withdraw the funds in retirement. Funds grow tax-free in a
Roth account.

While you may elect to make contributions to both a traditional 401(k) and a Roth 401(k), you may only
contribute a combined total of $20,500 per year. If you’re age 50 or older, you can make “catch up”
contributions up to $6,500 per year.

Investment Options

For new enrollees, approximately two weeks after your effective date you will be able to log into
www.principal.com to select your investment allocations.

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