Principal Bank Safe Harbor IRA Product Details
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 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. IRAs 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.
Note: Online access is not available for a Principal Bank Safe Harbor IRA.
Principal Bank personal bankers are available 7 AM to 9 PM (Central time), seven days a week, excluding holidays to answer questions or assist customers at 1.877.884.7236.
| 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[1] and Transfers |
As needed by accessing the IRA distribution form on the Principal Bank web site, or by calling a personal banker at 1.877.884.7236 from 7 AM to 9 PM (Central time), seven days a week, excluding holidays. | ||||||||||
| Account Fee | $15 Annual Fee - No transaction fees. No plan sponsor fees. | ||||||||||
| Interest Rate | Current Safe Harbor IRA rates. | ||||||||||
| 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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