401(k) & 403(b) retirement plans

Simplify the process for saving.

These common plans can streamline your retirement savings.

What does a 401(k) or 403(b) plan offer?

  • Automatic payroll deductions to help you make saving a habit
  • Reduced taxable income, through pre-tax contributions
  • Matched contributions, up to a certain percent (from some employers)
  • Long-term savings and growth potential across a variety of investment options

If your employer offers a 401 (k), 403(b), or a governmental 457(b) plan with services through Principal®, enroll online now.

Saving a little today may add up to a lot tomorrow.

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.

Tax benefits can help you save more.

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 2022, the yearly contribution limit increased to $20,500,(1) but some plans may have a lower limit. Log in to check your plan’s details.

Looking for a retirement plan Loan?

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:

  • any initial set-up and quarterly loan fees,
  • taxes you pay on the money you use to repay your loan, and
  • interest paid to yourself based on loan interest rates over time.

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.(2)


  1. IRS annual limits for 2022.

  2. Information is for illustrative purposes only. The retirement balance (potential future value) assumes a 7% annual rate of return on their savings. The assumed rate of return for the analysis is hypothetical and does not guarantee any future returns nor represent the return of any particular investment. Contributions do not take into account the impact of taxes on pre-tax distributions. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs.