Principal Bank Safe Harbor & Plan Term IRA Product Details
What is a Safe Harbor or Plan Term IRA?
The Principal Bank Safe Harbor or Plan Term IRA is a qualified savings account that pays a competitive interest rate and provides access to the funds at any time. IRAs are protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. For more detail, see the Principal Bank Frequently Asked Questions.
For a Safe Harbor IRA:
The law requires that retirement plan mandatory distributions from $1,000 - $5,000 be automatically rolled into an IRA instead of being paid in cash, unless the participant elects otherwise.
For a Plan Term IRA:
The law requires that retirement plan mandatory distributions of $1,000 or more be automatically rolled into an IRA instead of being paid in cash, unless the participant elects otherwise.
The automatic rollover requirement for either a Safe Habor or Plan Term IRA helps former employees save for retirement.
When a Principal Bank Safe Harbor or Plan Term IRA is Established
You 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 Safe Harbor & Plan Term IRA|
Automatic rollover of retirement plan mandatory small amount distributions.
|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 Fees||Schedule of Fees|
|Interest Rate||Current Safe Harbor & Plan Term IRA rates.|
|Interest Payments||Interest is accrued daily and paid to the IRA at the end of each calendar quarter.|
|Other Fees||Safe Harbor & Plan Term IRAs may be subject to the following Bank Fees: