RETIREMENT SAVINGS - 401k
PFNonwovens will continue to offer a 401k retirement savings account for you and your family made available through Principal.
401k PLAN ELIGIBILITY
All full-time regular employees are eligible to participate in the plan if they are at least 21 years of age. While enrollment is automatic, you have approximately 5 days from receipt of your first paycheck to change your contribution rate, direct your contributions to other investment options available through the plan, or decline participation in the plan. You will also be able to make changes to your account after you are enrolled.
SALARY DEFERRAL CONTRIBUTION PLAN PROVISION
You may elect to defer a percentage of your pay each pay period. Your current taxable income is reduced by the amount you contribute through pre-tax salary deferral. This lets you reduce your current federal and most state income taxes. This plan allows you to defer 100% of your pay.
- You may also elect to defer a percentage of your pay each pay period as Roth deferrals, which are after-tax contributions.
AUTOMATIC CONTRIBUTION ARRANGEMENT
This retirement plan includes an automatic contribution arrangement that applies to all eligible participants. If you are a new participant, you will be automatically enrolled in the retirement plan, meaning 3% of your pay will be deducted from paychecks and contributed to the retirement plan on your behalf unless you elect a different salary deferral percentage. If you are not a new participant, you will maintain your current salary deferral amount (which was either elected by you or you were automatically enrolled through the QACA or previous automatic contribution arrangement) unless you elect a different salary deferral percentage, or you fall within the automatic increase of affirmative election provision range outlined below. The retirement plan also includes an automatic salary deferral increase provision. Salary deferral contributions for automatically enrolled participants will automatically be increased by 1% every January 1st up to 10%. If you do not wish to be automatically enrolled, you may elect not to defer or to defer another percentage. You can enter into an agreement to change your salary deferral contribution on any date.
SALARY DEFERRAL LIMITS
Internal Revenue Service (IRS) regulations or the retirement plan may limit the annual amount of your salary deferral contributions. If you want to contribute more to your account than would be provided automatically, there are limits on the maximum amount. The IRS limit for 2025 is $23,500 and the catch-up contribution limit for employees aged 50 and over is $7,500.
QACA MATCHING CONTRIBUTION
A matching contribution of 100% of salary deferral contributions up to 1% of pay, plus 50% of salary deferral contributions from 1% to 6% of pay for the plan year.
VESTING PLAN PROVISIONS
You are always 100% vested in your employee contributions. You may be vested in a percentage of the employer matching contributions.
Years of Vesting Service Vested percentage 2 Years 100%
LOANS
Any participant who is actively employed may apply for a loan from the Plan subject to the limitations and conditions under the Loan Policy. You may borrow up to $50,000 or 50% of your vested balance, whichever is less. The minimum loan amount is $1,000. Taking a loan from your retirement account is a big decision. Learn about the impact a loan may have on your retirement by visiting www.principal.com.
ADDITIONAL RESOURCES
Planning for retirement can be stressful. Principal has quick resources that can help you make informed decisions for the future. Principal’s monthly webinar series can help you gain education and insight from retirement professionals to help make more informed decisions on topics like budgeting, retirement income, or Social Security. For more information, log into your Principal account at www.principal.com.
WILL LEGAL SERVICES
In addition to the financial planning available through Principal, there is also will planning available through their Will & Legal Document Center. It is also important to designate your beneficiary to ensure your retirement savings are distributed how you want. To learn more about the resources available to you for will planning and beneficiary designations, click below.
GETTING STARTED
To get better familiarized with PFN's retirement plan and have a Retirement Education Specialist walk through your retirement plan, click the button below to be directed to a recorded webinar.
To get started, visit www.principal.com/Welcome to register or log in. To learn more about the enrollment instructions and the Principal capabilities, see below.
