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401(k) Retirement Plan

The Frontdoor 401(k) retirement plan gives you a tax-advantaged way to save for retirement, plus matching contributions from Frontdoor to help your savings grow.

Your benefit details

You are automatically enrolled in the 401(k) plan after 30 days of employment at a 3% personal contribution rate. Your contribution automatically increases by 1% each January until it reaches 10% unless you choose a different rate or opt out. Frontdoor also helps you save by matching 100% of the first 4% of eligible pay you contribute.

How it works

  1. 1

    Choose how much to save.

    You can change your contribution rate at any time through Principal and contribute up to annual IRS limits.

    For 2027:

    • Annual contribution limit: $24,500 (includes Frontdoor contributions)
    • Catch-up contribution limit for ages 50 to 59 and 64+: $8,000 ($32,500 total)
    • Catch-up contribution limit for ages 60 to 63: $11,250 ($35,750 total)

    Choose your contribution (opens in a new tab)

  2. 2

    Get Frontdoor’s match.

    Frontdoor matches 100% up to the first 4% of eligible pay you contribute. Make sure you contribute at least 4% to allow you to receive the full Frontdoor matching contribution. You’re fully in the matching contribution after two years of employment.

  3. 3

    Set up your Principal account.

    Register for your Principal account to manage your retirement savings. Once you’re set up, you can:

    Set up your account (opens in a new tab)

  4. 4

    Choose how to invest.

    Choose from investment options available through the plan or select a managed account plan to handle investing for you.

    Explore investment options (opens in a new tab)

How you can save

Your 401(k) gives you several ways to save, with different tax advantages now and in retirement.

  • Pre-Tax

    • You don’t pay income taxes 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

    • You do pay income tax on the money right when you contribute it.
    • You don’t pay income tax when you withdraw it, as long as you’re at least age 59½, 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.

    Learn more (opens in a new tab)

  • Post-Tax

    • You do pay income tax on the money right when you contribute it.
    • You don’t pay taxes on withdrawals in retirement.
    • You do pay taxes on investment earnings.

Tools to help you plan

Principal provides tools and resources to help you understand where you are today and take steps toward your retirement goals.

Online tools and education

Use Principal’s online platform and mobile app to:

  • Estimate how much you may need for retirement
  • See whether your savings are on track
  • Explore educational articles and resources
  • Meet with a financial professional for personalized support
  • Attend monthly webinars

Explore tools (opens in a new tab)

Will and legal document preparation

Get a complimentary will and legal document preparation from Principal Milestones (in partnership with ARAG).

Learn more (opens in a new tab)

Find support

Principal

401(k) Retirement Plan

800-547-7754
principal.com (opens in a new tab)
Plan ID: 345662

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