Your financial security is important to you, your family, and to Frontdoor. We want you to feel secure and prepared for life after your career. In partnership with Principal, our 401(k) plan is designed to help you plan ahead and feel prepared.

How the Plan Works

The 401(k) is more flexible than other benefits. You can change your contributions and investments throughout the year.

  • All associates are eligible to join the plan after a 30-day waiting period.

  • You can contribute pre-tax dollars to your 401(k) account through payroll deductions (up to the annual IRS limits).

  • You can also contribute after-tax dollars through the Roth feature available in the plan.

  • Frontdoor will match your contributions dollar for dollar on the first 1% of earnings you contribute. We will match 50 cents per dollar on the next 5% of earnings you contribute.

  • You choose how to invest your money in a variety of investment options.

  • You are always 100% vested in your own contributions.

  • Frontdoor contributions are subject to a vesting schedule and are 100% vested after two years of service.

  • New hires are automatically enrolled in the plan after 30 days. This is our autoenrollment feature. Unless you actively elect otherwise, once you are enrolled in the 401(k), your contribution percentage will automatically increase 1% every January until you reach 10%.

Your Principal Account

It takes only a few minutes to get your retirement account set up and start saving. Take your first step at principal.com/welcome. Establishing online account access allows you to secure your account with two-factor authentication and review the applicable notices available about enrollment.

Principal Tools

You will have access to a world of online tools and resources from Principal to help you prepare for your financial future. For instance, through Principal Milestones you can learn more about financial topics like student loans, budgeting, or healthcare. Principal Milestones also offers a complimentary will and legal document preparation service (in partnership with ARAG). Learn more at principal.com/milestones. Principal also offers retirement calculators and investment services that allow you to choose your own investment options or use a managed account plan, which does the hard work for you.

Remember to add a beneficiary for your 401(k) through Principal’s convenient online beneficiary tool by visiting principal.com/beneficiary.

Scan this QR code with your mobile device (or click here) to download Principal’s mobile app.

IRS 401(k) Maximums

You can contribute up to $23,000 to your 401(k) account in 2024. If you will be age 50 or older in 2024, you may contribute an additional “catch-up” contribution of $7,500 for a total of $30,500.