Principal Bank Safe Harbor IRA
The law now requires that retirement plan mandatory distributions of $1000 or more be automatically rolled into an IRA instead of being paid in cash, unless the participant elects otherwise. The automatic rollover requirement helps former employees save for retirement.
The Principal Bank Safe Harbor IRA is a qualified savings account that pays a competitive interest rate and provides access to the funds at any time. IRA's are protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.
When a Principal Bank Safe Harbor IRA is established, the former participant will receive a Welcome Kit from Principal Bank containing additional information, including the Traditional IRA Custodial Agreement, disclosures and postage-paid envelopes for additional contributions.
Principal Bank personal bankers are available 24 hours every day, 365 days a year to answer questions or assist customers at 1.800.672.3343.
| Principal Bank Safe Harbor IRA | |||||||||||
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| Deposits | Automatic rollover of retirement plan mandatory small amount distributions. The former participant may make additional contributions to this IRA. |
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| Withdrawals* and Transfers |
As needed by accessing the IRA distribution form on the Principal Bank web site, or by calling a personal banker at 1.800.672.3343. | ||||||||||
| Account Fee | $15 Annual Fee - No transaction fees. No plan sponsor fees. | ||||||||||
| Interest Rate** |
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| Interest Payments | Interest is accrued daily and paid to the IRA at the end of each calendar quarter. | ||||||||||
| Other Fees | Safe Harbor IRAs may be subject to the following Bank Fees:
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* An IRS penalty may be imposed if withdrawals are made prior to age 59½.
** Annual Percentage Yield (APY) is accurate as of and is a variable rate subject to change.
*** Subject to State of Iowa and Polk County 6% sales tax.
