Yes! You can use AI to fill out Sensus USA Inc. 401(k) Plan Summary Plan Description (For Non-Union Employees)

The plan matches 100% of contributions up to 3% of pay, and 50% of contributions between 3% and 5% of pay. Many employees only contribute 3%, missing the additional match available on the next 2% of their contributions. This happens due to a misunderstanding of the tiered matching formula, resulting in leaving free money on the table and a smaller retirement account over time. To avoid this, contribute at least 5% of your pay to maximize the employer match. AI-powered tools like Instafill.ai can highlight these plan-specific rules during enrollment to ensure you don't miss such opportunities.

Employees often forget to update their beneficiary after major life events like marriage, divorce, or the birth of a child. This plan specifically requires written spousal consent to name a non-spouse primary beneficiary. Failure to complete this step correctly can lead to legal disputes and may result in benefits not being paid according to your wishes. Always review and update your beneficiary designation after any life event and ensure all required consent forms are properly signed and submitted.

The plan automatically enrolls new participants at a 3% contribution rate. Many employees accept this default and never revisit it, potentially saving far less than they intend or need for retirement. This oversight means missing out on years of potential growth and a larger employer match. To avoid this, actively log into the plan website (www.principal.com) after enrollment to select a contribution percentage that aligns with your financial goals, ensuring you contribute at least 5% to get the full match.

The plan has very strict, federally defined reasons for a hardship withdrawal, such as preventing foreclosure or paying for specific medical or educational expenses. Employees often apply for non-qualifying reasons like paying off credit card debt, leading to a denied request. They also may not realize they must exhaust all loan options first and that a successful withdrawal triggers a six-month suspension of all plan contributions. Before applying, carefully review the six approved reasons in the plan document to ensure your situation qualifies.

The IRS sets an annual limit for 401(k) contributions across all plans an individual participates in. An employee with a second job and a second 401(k) might accidentally contribute more than the combined legal limit. This results in double taxation on the excess amount if not corrected by the plan's March 1 deadline. To prevent this, track your total contributions across all employers throughout the year and adjust your deferral percentage accordingly to stay under the IRS limit.

The plan document states that any outstanding loan balance is due in full within 60 days of termination of employment. Many former employees are unaware of this accelerated repayment schedule and are unprepared to pay the lump sum. A failure to repay results in the outstanding balance being treated as a taxable distribution, subject to income tax and a potential 10% early withdrawal penalty. Be aware of this rule before taking a loan, and if you leave the company, be prepared to repay the loan immediately or face significant tax consequences.

Withdrawal and loan requests must be made in writing on a specific form provided by the plan administrator. These forms are often complex, and people frequently miss required signatures, spousal consent sections, or supporting documentation. This leads to rejected applications and significant delays in receiving funds. Since the plan documents are non-fillable PDFs, using a tool like Instafill.ai can convert them into interactive forms, guiding you through each required field and ensuring all necessary information is provided correctly before submission.

This plan offers both traditional pre-tax and Roth 401(k) contributions, which have very different tax treatments. Employees often choose one without understanding the long-term implications, potentially paying more in taxes over their lifetime. A pre-tax contribution lowers your current taxable income, while a Roth contribution is taxed now but allows for tax-free withdrawals in retirement. The best choice depends on your current and expected future income, and consulting a tax advisor is recommended to avoid this mistake.

The plan requires participants to direct how their account is invested among the available options. If a participant fails to make an election, their entire account balance will be placed in a default investment option chosen by the plan administrator. While designed to be a suitable long-term investment, this default fund may not align with your personal risk tolerance or retirement timeline. To avoid this, actively review the investment options and make your own selections when you enroll and during annual review periods.

While the plan accepts rollovers from other retirement accounts, it has specific rules about the types of plans and contributions it can accept (e.g., from other qualified plans, 457 plans, or IRAs). An employee might assume they can roll over funds from any source, only to have the transaction rejected for not meeting the plan's criteria. This causes delays and administrative headaches. Before initiating a rollover, contact the plan administrator or call the provided 1-800 number to confirm your other account is eligible for rollover into this plan.