Planning For Retirement

Because people are, on average, living longer than ever before, it is going to take even more money to support our retirement. The secret to a financially secure retirement is to start saving as early as possible. A 401(k) savings plan allows you to save for retirement on a pre-tax or Roth after-tax basis, or a combination of the two while receiving matching contributions from the Company.

Contributing to the Plan

You can join the plan at any time once you become eligible. You can make contributions to your account through convenient payroll deductions, and you place them in investments among various options offered by the plan. The maximum deferral contribution for 2024 is $22,500*.

You can contribute a portion of your earnings on a pre-tax or Roth after-tax basis, or a combination of the two to your 401(k) plan. Linksys helps you save for retirement by making a 50% match on your contribution, up to 3% of your wages (3-year graded vesting). Here are some examples:

  • If you contribute 4% of your wages to the 401(k) plan, Linksys will contribute in the amount of 2% of your wages.
  • If you contribute 6%, Linksys will contribute in the amount of 3% of your wages.

Keep in mind that the amount of Linksys’ contribution is capped at 3% of your wages, so if you contribute 10% to the 401(k) plan, the amount of Linksys’ contribution will still be 3%.

Eligible Linksys employees are automatically enrolled at a 3% pre-tax contribution rate through our 401(k) provider, Principal Financial, effective the first of the month following their date of hire with Linksys. All contributions are invested with Principal Financial in a diversified investment fund selected for you by the plan administrator, unless you elect different investments options.

*These values are subject to change once IRS releases their 2024 limits. 

Catch-Up Contributions

If you are or will be age 50 or older in this calendar year and contribute the maximum allowed to your account, you may also make “catch-up contributions.” The catch-up contribution is intended to help you accelerate your progress toward your retirement goals. The maximum catch-up contribution is $7,500 for 2024*.

*These values are subject to change once IRS releases their 2024 limits.

Change or Opt Out of Your Contribution

If you’d like to elect a different contribution amount or opt out of contributions, go to Principal.com. Under Login select “personal” from the dropdown menu and click on “Create an Account.” Follow the prompts and answer the questions to set up your login credentials. Once inside, go to “Contributions,” “Manage Contributions” and then “Change Your Contribution Rate.” Enter the amount you would like to contribute and click on “Submit.” Be sure to make this change before the 25th of the month prior to your effective date. If you don’t want to contribute to your 401(k) now, please check the “Waive” option. Instructions for enrolling in the 401(k) plans can be found on the Linksys intranet if you decide to participate later.

Transferring Funds

If you have monies from a previous employer’s 401(k) plan that you would like to rollover into the Linksys 401(k) Plan, you can do this online. Log in to your Principal account and click on the Transfer Other Accounts button. Follow the prompts and you will be provided with instructions on how to complete the rollover.

Access Your Account Online

Once your account has been set up with Principal Financial, you’ll receive a notice from a member of the Payroll Department with instructions for creating your own username and password, which you’ll need to access your account online. To make changes to the way your 401(k) funds are invested, click “Investments” on the main menu and select “Manage Investments Enrollment”