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The difference between pretax and Roth comes down to when the money is taxed. Pretax contributions are taken from your check before taxes are calculated, and you instead pay taxes on them when you take money out at retirement. Roth contributions come out after taxes, and are then withdrawn tax free, provided certain requirements are met. For example, imagine your paycheck is $1000. If you elect a 5% pretax contribution, your employer will take 5% of your $1000, put it into the 401(k) plan, and then calculate your income taxes based off the remaining $950. If you had elected 5% Roth, your employer would calculate taxes on the $1000 like normal, and then take out 5%. If your state and federal taxes were 25% total, your employer would first calculate your net pay after taxes ($750), then contribute 5% of that $750. Because you already paid taxes on that money, you do not pay taxes on Roth contributions when you withdraw them provided the requirements are met.

The IRS adjusts the annual limits each year to roughly follow inflation. In 2025, you may defer up to $23,500 into your 401(k) plan. Individuals over 50 are also eligible to defer an additional $7,500 as a "catch-up" contribution. Those between 60 and 63 are eligible for catch-up contributions of up to $11,250. Of course, you must satisfy your plan's eligibility requirements before deferring into your plan. Please reach out to your employer for specific details on the age, service, and other requirements in your plan to determine your eligibility.

When you put money into a 401(k) plan, it gets invested into the stock market in the way you direct through your portal. Most plans provide “models”, pre-made selections of funds created by your plan advisor for different risk tolerances. For example, a plan might have an aggressive model that puts 80% of your money into growth funds and only 20% into bonds, a conservative model that puts almost all your money into bonds and money market accounts and only a small portion into the market, and several options in between. You as a participant are always in complete control of how your money is invested through your portal, so you never have to take more risk than you'd prefer. Virtually all plans include a capital preservation fund, so you are never forced to invest if you'd prefer not to.

Certain employer contributions are subject to vesting. Vesting means that contributions may be made to you, and controlled by your investment elections, but don't truly belong to you until you meet certain service requirements. For example, imagine your employer made a $500 contribution to your account that had 2-year cliff vesting. That money shows up in your balance, and is invested how you direct it. However, if you terminate within the first two years of employment, that $500 goes back to your employer. Once you earn two years of service, you "earn" the right to that money, and it is yours even if you terminate and move your money elsewhere. Some plans do a "graded" vesting schedule, so you gradually earn the contribution. For example, in 6-year graded vesting, you earn 20% “ownership” of the money each year. If you receive $1000 in employer money and terminate after one year of service, you would be 20% vested in that contribution, so you'd keep $200 and the remaining $800 is returned to the employer. Your deferrals are never subject to vesting; your money will always be yours. Only employer contributions are subject to vesting rules.

Some, but not all, plans allow you to take a loan from your account balance, usually up to 50% of your vested balance. Loan payments are then deducted from your paycheck like normal contributions. Although 401(k) loans are subject to interest rates, the interest is paid back to your 401(k) plan along with the principal, as opposed to a credit company. Please check with your Human Resources department on the availability of loans in your plan.

Some plans allow for hardship withdrawals. According to IRS regulations, your hardship must represent an “immediate and heavy financial need” and there must not be “any other resource reasonably available to you to handle that financial need”. The IRS currently recognizes six reasons for a withdrawal: 1. Certain unreimbursable medical expenses 2. Purchase of a primary residence 3. Payments of post-secondary tuition for the next year 4. To prevent eviction from or foreclosure on your home 5. Payments needed to repair damage to your principal residence that would qualify as a deductible casualty expense 6. Payment of funeral expenses for your deceased parent, spouse, children, or dependents If you fall into one of these categories and would like to make a withdrawal, please contact us or your HR department to check availability and repercussions.

Money you defer into a 401(k) plan will always be yours, even if you terminate with your employer. Upon termination, you have several options, some of which may be limited by your plan: • Transfer your balance directly to an **Individual Retirement Account (IRA)** • Transfer money into the **401(k) plan of your new employer** • Leave your money in your current plan (if over $5,000) • Take a **partial withdrawal** (subject to taxes and 10% early withdrawal penalty) All options are subject to your specific plan rules. That said, there is always a way to move your money to a different account without paying taxes. IRAs are widely available through many financial institutions at low or no cost. Consult a tax professional to find what's best for you.

You can change your contribution rate, change your investment elections, view and generate statements, and use all available tools in your participant portal by going to **For Participants → Participant Portal** on our website, or by clicking **Access Account** on the homepage. If your employer recently converted to a Journey plan, they may have provided you with an enrollment guide. If your employer already has an established plan with us, your account likely already exists in our system. Try logging in using: • **Username:** your full Social Security Number (no dashes/spaces) • **Password:** last 4 digits of your SSN You’ll then be prompted to change your username and password. If you have trouble logging in, contact us and we’ll help you access your account.