Your contributions

You can contribute from 1% to 75% of your eligible pay on a pre-tax, Roth 401(k) after-tax, or traditional after-tax basis, or some combination of the three. Pre-tax and Roth contributions are subject to an annual limit set by the IRS. Note: Pre-tax or Roth contributions automatically become traditional after-tax contributions once the annual 401(k) limit for pre-tax or Roth contributions has been reached.

You also may not allocate more than 20% of your contributions to the Union Pacific Common Stock Fund.

IRS contribution limits
The IRS limits Plan contributions. See the current IRS limits.

IRS contribution limits are based on your total contributions. Withdrawals from pre-tax contributions will be taxed at your ordinary income tax rate. Withdrawals from Roth contributions aren’t taxed as long as they are taken after age 59½ and you have held the account for at least five years. Earlier withdrawals may be subject to income taxes and a 10% federal penalty tax.

To set your contribution percentage, log in to your account at vanguard.com/retirementplans.

You may also call Vanguard Participant Services at 800-523-1188 and use VOICE® or speak with an associate to designate your contribution percentage.

Catch-up contributions
If you are age 50 or older, or will reach age 50 by year’s end, and you contribute the maximum allowed, you may make catch-up contributions. Catch-up contributions allow you to save above the normal IRS annual limit on a pre-tax or Roth basis.