Principal

Know Your Retirement wellness score

With one quick number, your Retirement Wellness Score helps you determine if you’re saving enough for retirement. The sooner you know your score, the sooner you’ll know if you need to take steps to improve it. Visit: www.Principal.com for more information.

Additional payment options beginning in 2018:

In addition to the lump sum distribution from Principal when you retire, ARHS is adding other payment options to allow you to consider installment payments over several years, or an annuity that pays a set amount each month for the remainder of your life.


Your Retirement Deferrals

The amount you contribute to your 403(b) retirement savings plan has the potential to make a big difference to your retirement account balance over time.

Plan Highlights:

  • Newly hired employees are automatically enrolled in the retirement savings plan at 4% unless a different deferral amount is elected.
  • ARHS matches 75% of the first 4% you contribute after service, hours and age requirements are met.
  • Discretionary Basic Contribution of 2% total compensation (service, hours and age apply).
  • Must be at least 21 years of age.
  • Must have one year of service in which 1,000 hours are worked.
  • After meeting age, service and hours requirements, employees enter the match program on April 1 or October 1 whichever is closest to their one-year anniversary date.
  • Employees are fully vested for employer contributions after three years of service with ARHS.
  • Earn LYL points by meeting with a Retire Secure Financial Planner! Appointments are available by clicking on the Intranet Human Resources tab. They will consult with you on your savings plans, investment strategies and facilitate changes to your retirement plan.

Roth Contributions (NEW)

ARHS is adding Roth contributions to your investment options. A Roth IRA is an investment option that allows you to set aside AFTER-TAX income for retirement savings (you cannot deduct your contributions on your income taxes). All future withdrawals from the Roth IRA will be tax-free. Learn more about the Roth accounts from the IRS.

“Roth contributions” might be one of those terms that you’ve heard before but aren’t sure what it means. And they could help you get more out of your savings when you retire.

You have the option of contributing to both the Roth and the 403(b).  Your combined contributions cannot exceed the IRS contribution limits, which in 2017 are set to $18,000 with a $6,000 catch-up for employees age 50 or over.


How are Roth contributions different from regular contributions?

Source: Principal Financial Group

Pay taxes now or later? Figuring out whether you’ll pay more taxes now or when you retire can be tricky. However, you can make a combination of both regular and Roth contributions to help balance out what you owe.

Regular Contributions

You don’t pay income tax on the money when you contribute.

You do pay income tax when you withdraw it.

May be better if you think your tax rate will go down when you retire.

Roth Contributions

You do pay income tax on the money when you contribute.

You don’t pay income tax when you withdraw it, as long as you’re at least age 59 ½, and the money has been in your account for at least five years.

May be better if you think your tax rate will be higher when you retire.

Are Roth contributions right for you? They may be if you:

  • Are a consistent saver.
  • Are on track to exceed your estimated retirement needs.
  • Can’t participate in a Roth IRA.
  • Think your income tax rate will be higher in retirement than it is now.

Need help deciding which contributions are right for you? We can help. Go to principal.com/roth to use the Roth calculator. Then if you’re ready, choose which kind of contributions you want to make.


Principal 1:1 meetings can now be scheduled online!

Click here to access the signup page. With this new system you can do everything electronically; sign-up, change an appointment, cancel a meeting and access the Personal Financial Worksheet. If you have any questions or issues please call HR at (828) 262-4116.


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