401(k) and 403(b) Retirement Plans

Save for retirement an easy way.

Does your employer offer a 401(k) or 403(b) plan? These common retirement savings plans can help make the process of saving for retirement easy.

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

These plans can help you build your retirement savings with:

  • Automatic payroll deductions to help you make saving a habit
  • Reduced taxable income, since your pre-tax contributions lower your taxable income
  • Matched contributions from some employers, up to a certain percent (check with your benefits administrator)
  • Long-term savings and growth potential across a variety of the plan’s investment options

Does your employer offer a 401(k) or 403(b) plan with services through Principal®Enroll online now

A little today may be a lot tomorrow.

If you’re already enrolled in a 401(k) or 403(b) plan with services by Principal, you might 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.

Looking for a 401(k) or 403(b) plan loan?

When bills or debt feel overwhelming, it can be tempting to consider borrowing against your account in a 403(b) or a 401(k) 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
  • Loan interest rates over time

On top of that, you may miss out on potential growth and compounding of your earnings, which can be a major advantage of long-term savings in an account under 401(k) and 403(b) plans.

To give you an idea, $20,000 in a 401(k) or 403(b) account could triple in 20 years at an average 7% rate of return —but not if you withdraw it today. 

Log in to learn more about retirement loans, and talk to your financial professional before you make a decision.

Have a 401(k) or 403(b) account with services by Principal®?

Access and manage your account.

We can help you simplify the saving process for retirement.

Call 800-547-7754 if you are interested in how to roll your retirement funds into your employer sponsored plan.

Learn more about building your retirement

Photo of someone saving and planning for retirement by creating a retirement plan.

5 steps to creating your retirement plan

Even if it’s a long way off, saving and planning for retirement is a good idea. We give you 5 steps to creating your retirement plan.

Photo of a millennial who is planning for retirement by investing aggressively when she is younger.

Retirement for millennials: Why investing aggressively can pay off

Man who performs regular checkups on his retirement plan to determine if his goals are still on track.

Is it time for a (retirement) tune-up?

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 is hypothetical and does not guarantee any future returns nor represent the returns of any particular investment.  Amounts do not reflect the impact of taxes on pre-tax distributions.  Individual taxpayer circumstances may vary.