Retirement Savings Plans

Use the 2025 Savings Contribution Tool or 2026 Savings Contribution Tool to help you determine your bi-weekly contribution percentage.

• You can contribute from one to 75 percent each pay period in whole percent increments.
   
• You can contribute to a traditional savings plan (pre-tax) or to a Roth savings plan (post-tax).
  • Roth after-tax contributions are like traditional contributions, but the difference has a lot to do with taxes and when you pay them.
  • With traditional contributions, you pay taxes on the money when you withdraw it at retirement, not when the contribution is taken from your paycheck (pretax contribution).
  • With Roth contributions, you pay taxes when the contribution is made (after-tax). Plus, earnings on your contributions are not taxable if you meet the following requirements when you withdraw:
    • You're at least age 59½, or you meet death or disability requirements.
    • The money has been in your account for at least five years after the first Roth contribution was made.
• Your contributions will be deposited automatically into an account set up for you with Principal. Your contributions will be invested in Vanguard's target-date funds unless you choose other investments offered through the plan.
   
• You can sign up to increase your contribution automatically each year by one to five percentage points until you are contributing 10 percent of your pay to the retirement savings plan.
   
• You can change your contribution, view your account balance and quarterly statements, choose your investments and designate your beneficiary with Principal.

The IRS limits how much you can contribute to a savings plan each year. However you choose to contribute, your total contribution amount (to all qualified savings plans - any 401k or 403b at any employer during the calendar year) cannot exceed the IRS annual limit each year.

For 2026, you can contribute up to $24,500.

There are exceptions to this rule if you are in either of these categories:

1. If you are age 50 and older in 2025 (born on or before Dec. 31, 1976), you can contribute an additional $8,000.
2. Starting in January 2026, if you will attain age 60, 61, 62, or 63 at any point in 2026, your contribution limit is even higher. Instead of $8,000 in catch-up, you can save an extra $11,250.

Effective January 1, 2026 as a result of the SECURE 2.0 Act of 2022 (SECURE 2.0), all catch-up contributions for participants earning over $150,000 in the prior calendar year must be made on a Roth (after-tax) basis. This amount is indexed and may change annually.

• If you elect to contribute on a traditional (pre-tax) basis and you have any catch-up contributions, they will automatically be deducted from your paycheck on a Roth (after-tax) basis.
• Based on our system set up, your contributions will continue until you reach the appropriate limit. Your contributions will restart at the beginning of the next calendar year unless you make a change on Principal’s website. 

For Employees Hired between February 12, 2024 and December 15, 2025, you were automatically enrolled in the savings plan at 3 percent. On January 1, 2026, your savings deferral increased to 4 percent. 

For Employees Hired After December 15, 2025, you were automatically enrolled in the savings plan at 4 percent.

Starting January 1, 2026, you can opt out of the savings plan within 90 days of your first contribution through Principal and contact them to request a refund of any amount that was automatically taken out of your paycheck.

Principal Retire Secure SM provides a team of retirement educators who are available to meet one-on-one with Carilion employees at no cost to you! Check out the Retirement Educator page for more information and how to schedule a 1:1 session. 

• If you were hired after July 15, 2012, you were automatically enrolled in the savings plan at 3 percent. You can opt out within 30 days of your first contribution through Principal and contact them to request a refund of any amount that was automatically taken out of your paycheck.
• For Employees Hired between February 12, 2024 and December 15, 2025, you were automatically enrolled in the savings plan at 3 percent. On January 1, 2026, your savings deferral increased to 4 percent.
• For Employees Hired After December 15, 2025, you were automatically enrolled in the savings plan at 4 percent.

• Medical residents, pharmacy residents, interns and students are not automatically enrolled in the plan. To contribute, log in to your account at principal.com, or call Principal at 800-547-7754 and they can take your enrollment over the phone.

   

• Starting January 1, 2026, you can opt out of the savings plan within 90 days of your first contribution through Principal and contact them to request a refund of any amount that was automatically taken out of your paycheck.

   

• You will be enrolled automatically in the program to increase your contribution each year by one percentage point until you are contributing 10 percent of your pay to the retirement savings plan. You can opt-out or change this amount with Principal.
• If you are enrolling mid-year, contributions made into a former employer’s qualified plan must be counted toward the IRS annual limit. It's your responsibility to monitor your year-to-date contributions to ensure you do not exceed IRS limits. For assistance with rolling over a qualified 401(k) or 403(b) plan from another employer, contact Principal at 800-547-7754.

Participants in the Carilion 403(b) plan may be eligible to make up to an additional $3,000 deferral under the 15-year catch-up rule. If you meet all of the following conditions, contact Human Resources to determine the maximum amount of your 15-year catch-up:

• You currently are eligible for the 403(b) plan.
• You have been employed by Carilion for at least 15 years. Only service with a not-for-profit Carilion company will count for this 403(b) special catch-up rule. If you are unsure of whether you have only worked for a not-for-profit company, contact Human Resources.
• You intend to contribute more than the IRS contribution limit.
• The IRS contribution limit is less than 75 percent of your salary. For example, you can not do a catch-up if you make $30,000 per year because the plan's 75 percent of compensation limit would restrict you to a $15,000 contribution.
• You have not averaged at least $5,000 in deferrals for each year of eligible service in the 403(b) plan. For example, if you have 15 years of service and contributed at least $75,000 to the 403(b) plan, you would not be eligible for the 15-year catch-up contribution.

If you meet these conditions, please review the IRS information on the 15-year catch-up and contact Human Resources to determine whether you may make a contribution under the 15-year catch-up rules.

You will still qualify for the age 50 catch-up if you are age 50 or older regardless of whether you qualify for the 15-year catch-up.

When you login to your account with Principal, you may perform several actions such as changing your contribution, viewing your account balance and quarterly statements, choosing your investments and designating your beneficiary.

Use the Account Access guide for assistance with accessing your account:

• Online: go to Principal.com/welcome. Enter the requested information to create your account. If you need assistance accessing the website or establishing a password, contact the Principal Participant Contact Center at 800-986-3343. The Interactive Voice Response system is available 24 hours a day, seven days a week. Representatives are available Monday through Friday from 8 a.m. to 10 p.m. ET, except major U.S. holidays.

• Mobile: download the Principal App available for iPhone and Android: principal.com/onthego

• Phone: call 800-547-7754; be prepared to provide personal information like your date of birth or Social Security Number to verify your identity. When prompted, you will need to establish your personal identification number (PIN).

The first time you enroll in the savings plan, your contributions will be invested in the Vanguard target-date fund that includes your 65th birthday. Target-date funds provide investment choices based on the date you are expected to retire at age 65. For example, a target-date fund for people expected to retire in 2020 is more conservative than a target-date fund for people expected to retire in 2040. Learn more about target-date funds on Principal's website.

If you prefer to make your own investment decisions, you can choose from the mutual funds offered, which include a mix of stocks, bonds and money market funds:  

• Stocks—Shares of ownership in a company. Sometimes called “equity,” stocks have different levels of risk. Large company stock may provide dividends and lower levels of volatility while the stock of smaller, faster-growing companies might offer higher volatility but greater potential for growth. Stocks are most vulnerable to market risk, which is the risk that the market at a whole will lose value.
• Bonds—Loans you make to a government or corporate entity. In return for borrowing your money, bonds may pay a fixed amount of interest. Because the rate of interest paid is a big factor in the value of a bond, bonds carry interest rate risk. Interest rate risk is the risk that interest rates will rise, negatively impacting the value of bonds purchased at a lower interest rate.
• Money Market—Money market and stable funds can be turned into cash at any time without losing much, if any, of their original value. These investments might include money markets or certificates of deposit (CDs). Money market and stable funds are susceptible to inflation risk. Inflation risk is the risk that these funds might not offer a return high enough to outpace inflation.

For the do-it-yourself option, you may want to consider your comfort level with volatility in relation to risk versus return. Other considerations include asset class mix, investment time horizon, and diversifying your investments. A prospectus and fact sheet are available for each of the mutual funds online.

At least once a year, you should review your portfolio and adjust the asset class mix, if appropriate. Some of your investment selections may do well and will take up more of your portfolio while others may not do as well and will take up less of your portfolio.

Some investors move quickly in and out of certain investments to take advantage of profit opportunities, known as market timing. To discourage market timing and to fairly compensate existing shareholders for the transaction costs, the investment fund may charge a redemption fee on those shares that are purchased and then quickly sold. The redemption fee is imposed by the manager of the fund, not Carilion or Principal, and is paid directly to the fund for the benefit of its shareholders because they bear the increased costs due to the additional transactions. To find out more about redemption fees, contact a Principal representative at 800-547-7754 Monday through Friday between 8 a.m. and 10 p.m Eastern, excluding major U.S. holidays.

You may roll money from another employer sponsored qualified plan or an employer sponsored IRA into your Carilion 401(k) or 403(b) plan only if the balance includes pre-tax dollars and tax-deferred dollars. Your balance may not be rolled into Carilion’s 401(k) or 403(b) plans if it has after-tax contributions. 

• Before you decide to combine your balances into the Carilion savings plan, you should review the investment options you have in the old plans for their performance and for any surrender charges or penalties.
• To roll money into your Carilion savings plan you should contact your old plan vendor for their requirements.
• You also need to contact Principal for requirements of rolling money into the plan. 
  • Consider reviewing the documents Rollovers: Know Your Options and Rollovers: Simplify Your Planning.
  • You can start the rollover process through your account at Principal. Once logged in, select Rollovers\Start your rollover now and follow the on-screen prompts.

Until you have an event (separation of service, retirement, disability or death) that allows you take a distribution from the savings plan, your current account will remain in the plan and you will continue to have access to the investment options and may switch funds at any time.

If you transfer to a Carilion company with the same retirement savings plan, your participation will continue.

If you are currently contributing to the 401(k) savings plan in a for-profit company and you transfer to a not-for-profit company, you will be eligible for the 403(b) plan and your contributions to the 401(k) plan will stop. If this is the first time you are eligible for the 403(b), you will automatically be enrolled at 3 percent in the 403(b) plan. Starting January 1, 2026, you will automatically be enrolled at 4 percent. If you have previously been eligible for the 403(b), you will not be automatically enrolled. You can opt-out within the first 30 days with Principal and contact them to request a refund of any amounts already contributed to the plan. In addition, a 1 percent auto-increase amount will automatically be established. Every February beginning the year after you are hired, your contribution percent will be increased by 1 percent until your deduction is 10 percent. This also applies if you are currently contributing to a not-for-profit company, 403(b), and transfer to a for-profit company, 401(k) plan. You may designate your beneficiary, change your deduction percentage, or review your auto-increase value and your investment options any time with Principal.

Current tax regulations do not allow us to combine 403(b) money with 401(k) money while you are still an active employee with Carilion. However, if you leave Carilion, you may rollover your 403(b) account balance into a new employer’s 401(k) plan, for example. You will need to contact Principal to update your beneficiary for the new plan. Use the Savings Affiliates Document to determine which plan you are eligible to participate in.

If your secondary position is in a Carilion company with the same retirement savings plan, your participation will continue as is. If your secondary position is in a Carilion company with a different retirement savings plan and this is the first time you are eligible for the new plan, you will be automatically enrolled at 3 percent in the new savings plan. Starting January 1, 2026, you will automatically be enrolled at 4 percent. If you have previously been eligible for the plan, you will not be automatically enrolled. Use the Savings Affiliates Document to determine which plan you are eligible to participate in.

You can opt-out of the new plan within the first 30 days with Principal and contact them at 800-547-7754 to request a refund of any amounts already contributed to the plan. In addition, if you are auto-enrolled in the new plan, a 1 percent auto-increase amount will automatically be established. Every February beginning the year after you are hired, your contribution percent will be increased by 1 percent until your deduction is 10 percent. You may designate your beneficiary, change your deduction percentage, or review your auto-increase value and your investment options any time with Principal.

Until you have an event (separation of service, retirement, disability or death) that allows you take a distribution from the savings plan, your current account will remain in the plan and you will continue to have access to the investment options and may switch funds at any time.

Your beneficiary for the savings plan is a separate designation from your Carilion life insurance. You must designate your beneficiary with Principal for each savings plan in which you participate. After you've had your first payroll deduction, you may designate or change your beneficiary at any time. As a plan subject to ERISA rules, the savings plan will pay to your designated beneficiary or the default beneficiary under the terms of the plan. You may not direct the payment of the savings plan through your will.

• If you are married, your spouse is automatically your beneficiary.
  • You must obtain your spouse’s written consent to designate anyone other than your spouse, or in addition to your spouse, as your beneficiary.
  • You need your spouse’s consent each time you change your non-spouse beneficiary.

• If you wish to designate a beneficiary other than (or in addition to) your spouse, complete and return the beneficiary designation form available by calling Principal at 800-547-7754 or by logging into your account at Principal.

• If you get married after naming a beneficiary, your spouse automatically becomes your beneficiary and your prior designation will no longer be in effect. 

• If you are not married, you may designate any one or more persons of your choosing to be a beneficiary.

If at the time of your death you have not designated a beneficiary or your beneficiary is not alive, your benefit will be paid in the following order to:

(a) To your surviving spouse, if married including legally separated.

• Your spouse must be your primary beneficiary unless he consents for you to designate another beneficiary. If you want to name someone other than your spouse as your beneficiary, contact Principal. They will mail you a consent form for your spouse to complete, be witnessed by a notary public and returned to Principal.
• If you are legally separated, you may change your primary beneficiary to someone other than your spouse when your divorce is final. However, your spouse always has the option to allow you to name another beneficiary by completing a consent form before the divorce. 

(b) If your spouse is not living at your death, the balance will be paid equally to your surviving children, including adopted children.

(c) If there are no children, the balance will be paid equally to your surviving parents.

(d) If none of the above, the balance is paid to your estate.

You can change your beneficiary at any time. However, if you are married, your spouse must be your primary beneficiary unless he has consented to allow you to designate another beneficiary. A new beneficiary should be designated if your marital status or family situation changes.

Because your 403(b) or 401(k) savings account is a pre-tax retirement plan, the IRS allows only limited access to your account while you are employed.

• Starting April 1, 2025, you will no longer need to have a financial hardship to take a loan from your 401k or 403b plan.
• You may take a loan from your own contributions (not including the Carilion contributions or investment earnings).
  • Documentation of the loan is required.
  • Principal will determine if you qualify; contact them with questions at 800-547-7754.
  • If approved, Principal will process your loan and will notify Human Resources to start your payroll deductions.
  • The loan interest and principal are repaid to your account and invested in the same way as you have your contributions set up.
  • You may only have one loan outstanding at a time.
  • Loan repayments are from after-tax income.
  • If you leave Carilion, the outstanding principal amount and accrued interest must be repaid in full or the loan will be considered to be in default. If you are in default, the outstanding amount will be reported on a Form 1099 and will be taxable to you.
  • Before you take a loan from your savings plan, review the following:
    • Should You Take a Loan flyer
    • Loan FAQs
    • 403(b) Loan Policy
    • 401(k) loan information is included in Article VI of the SPD
• You are under age 59½—you can make a withdrawal from your own contributions (not including the Carilion contributions or investment earnings) only if you have a financial hardship.
  • To be eligible for a hardship, you must meet one of these conditions:
    • You are making a down payment on your primary residence.
    • You need money to prevent eviction or foreclosure.
    • You have medical bills for which you will not be reimbursed.
    • You need money to pay for a college education for you or your dependents.
    • You need money to pay for burial or funeral expenses of your deceased parent, spouse, children or dependents.
    • You need money to pay for the repair of damage to your principal residence that would qualify for the casualty deduction under section 165.
  • Documentation of the hardship is required.
  • Principal will determine if you qualify; contact them with questions at 800-547-7754.
  • A hardship withdrawal is immediately taxable.
  • Generally, the 10 percent early withdrawal penalty will apply when you file your 1040.
  • Principal will send you a Form 1099 to use when filing your income taxes.

• You are age 59½ or older—you can make a withdrawal from your account.
  • You can transfer funds to an IRA or plan outside of Carilion.
  • You can receive an in-service withdrawal with no penalty for early withdrawal. However, 20 percent federal tax and 4 percent state tax will be withheld from the money you take out of your account.
  • Contact Principal to request an in-service withdrawal at 800-547-7754.

Once you have separated from Carilion, you may no longer make contributions to the plan. When you leave Carilion, a distribution kit will be sent to you from Principal. If you have not received a distribution kit 60 days after your separation date, call Principal at 800-547-7754 to request one.

You must work directly with Principal on your distribution. Your separation date must be received at Principal for them to process your distribution request. You may start your distribution by contacting Principal:

• by phone at 800-547-7754
• start the distribution process through your account at Principal. Once logged in, select Distributions and follow the on-screen prompts.

When you leave, you may have several options regarding your balance depending on your situation.

• Balance is more than $1,000 (not including rollovers)—you may keep your money invested in the plan until age 72, or age 73 if you reach age 72 after Dec. 31, 2022.
• Balance is $1,000 or less—you will receive a distribution.
• When you receive a distribution: 
  • You may receive a partial distribution (you do not have to take the full balance out of the account).
  • You may do a partial rollover and partial cash payment.
  • You may roll over your money to an IRA or another employer retirement plan qualified under Internal Revenue Code Section 401. Check with your new plan to see if they will accept your rollover. 
    • Consider reviewing the documents Rollovers: Know Your Options and Rollovers: Simplify Your Planning.
  • If you do not roll over your money, you will pay ordinary income taxes (20 percent federal tax and state tax, if applicable). You may pay an additional 10 percent non-deductible tax penalty if you are under age 59½, except for certain circumstances. You will receive more information in your distribution kit from Principal. 
    • If you are subject to the early withdrawal penalty, 10 percent penalty is applied when you file your taxes.
• In the event of your death, your designated beneficiaries will receive your account balance.
• If you have an outstanding loan balance, the balance is taxable in the year you separate plus 10 percent for early withdrawal penalty if under age 59½ when filing your 1040.

Principal: 800-547-7754

Representatives are available Monday through Friday from 8 a.m. to 10 p.m. ET, except major U.S. holidays.

• 2026 Savings Contribution Tool (XLSX)
• Savings Plans Affiliates List (PDF)
• Carilion Clinic 403(b) Loan Policy (PDF)
• Carilion Clinic 403(b) Summary Plan Description (PDF)
• Eligible Automatic Contribution Arrangement (EACA) - 403(b) (PDF)
• Carilion Clinic 401(k) Summary Plan Description (PDF)
• Eligible Automatic Contribution Arrangement (EACA) - 401(k) (PDF)
• Account Access guide (Principal) (PDF)
  • Mobile App - English
  • Mobile App - Spanish
• Your future, your way (Principal) (PDF)
• FAQs - savings plans moved to Principal (PDF)
• Loan FAQs (PDF)
• Should You Take a Loan flyer (PDF)
• Options Checklist (PDF)
• Distributions: Know Your Options (PDF)
• Rollovers: Simplify Your Planning (PDF)
• Principal website
• Welcome to Principal video
• Principal Milestones video
• Principal Retirement Wellness planner video
• Carilion Clinic Regulatory Information
• Retirement Savings Contributions Credit (Saver’s Credit) | Internal Revenue Service
• Contact Principal by phone at 800-547-7754; be prepared to provide personal information like your date of birth or Social Security Number to verify your identity.