401(k) Investment Plan
The Time is Now!
It’s never too late to start planning for your retirement. That’s where the BWH℠ Hotels (BWH) 401(k) Investment Plan can really help.
How a 401(k) Works
In addition to Social Security and other retirement accounts you may have, the 401(k) Investment Plan can give your retirement savings a boost — so you can enter your golden years with a substantial nest egg.
Both you and BWH make contributions to your 401(k) account. There are various investment options, and you get to decide how to invest those contributions. It’s pretty simple, but there are some important things you need to know.
401(k) Investment Plan
- You make contributions
- Best Western makes contributions
- You choose how to invest the money in your 401(k) account.
How to Enroll
- You can enroll in the plan immediately by going to www.principal.com
- Approximately 45 days after your hire date, you are automatically enrolled at a 4 percent contribution rate
- You may change this contribution amount at any time
Your Contributions
You may contribute from 1% to 75% of compensation as long as it does not exceed the IRS annual dollar limitation. For 2025, the dollar limit is $23,500.
Catch-Up Contributions
If you will be at least 50 years old by December 31, you can contribute an additional $7,500.
Starting in 2025, employees aged 60, 61, 62 or 63 can contribute up to $11,200.
Pre-Tax Contribution
Contributing pre-tax reduces your current taxable income. You’ll defer paying tax on your contributions and associated earnings until you withdraw the money from your account.
Roth (Post-Tax) Contribution
The Roth option allows you to contribute on a post-tax basis. The benefit of making Roth 401(k) contributions is that earnings on contributions can be withdrawn income tax-free provided certain criteria are met.
Roll Over Contributions
You may roll over an existing qualified retirement plan account or an eligible IRA into the plan at any time.
Best Western Contributions
Company Contribution
- Beginning the first fiscal quarter after you have worked at least 1,000 hours and been employed by BWH for at least one year, the company will contribute 3% of your eligible earnings to your account each pay period.
- This contribution will be made regardless of whether or not you contribute to the 401(k) plan.
- Fiscal quarters begin March 1, June 1, September 1 and December 1. (e.g., hired fulltime January 11, 2024; company contribution begins in March 2025.)
Matching Contribution
- The company match is a discretionary contribution that the Board of Directors must approve each year
- If approved, BWH will match your contributions dollar-for-dollar up to 6% of your eligible compensation.
- The company match, if approved, is made in December for contributions made during the prior 12 months ending November 30.
- You must have made paycheck contributions, be employed on the last day of the plan year (November 30), and have worked at least 1,000 hours during the plan year to be eligible for the company match.
IRS 401(k) Contribution Limits for 2025
The IRS restricts the total amount you and BWH Hotels (BWH) may contribute to your 401(k) each year, but you can contribute a little more if you are age 50 or older.
- $23,500
- $31,000 (if you are over 50)
- $34,750 (if you are ages 60 to 63)
Investment Options
- You can select from a variety of investment options – speak to a financial advisor to help you select the right investment mix
- Contributions and any company match will default to the American Century Target Date Fund, if no other investments are selected
Getting More Information
Access additional plan information and educational tools at www.principal.com. Learn about:
- How to rollover a qualified retirement account
- Vesting schedule
- Investment fund information
- Budgeting to save for retirement
- Calculating how much you’ll need in retirement
If you prefer to speak with someone, simply call the Retirement Service Center at 1-800-986-3343.