Retirement and compensation plans

Any retirement plan offered by your employer would be listed as part of your benefits package. If you’re not sure, contact your human resources department or hiring manager.

Typically when you are hired, you receive information about enrolling in your employer-sponsored retirement plan. Enrollment happens one of two ways: You elect to contribute to the plan, or your employer opts you in automatically (called automatic enrollment – notice provided). The easiest way to check if you are enrolled? Look at your paystub for deductions, typically listed as “401(k) contributions” or “retirement.” If you aren’t sure or want to enroll, contact your human resources representative or hiring manager.

You can create an account on our self-registration page. Or, download the Principal app and answer the prompts.

You can check contributions to the retirement savings plan in a couple of different ways: Log in to your account at Principal.com and click on the 401(k) account card. Then, navigate to “Contributions” in the menu. Or look on your paystub: Contributions are typically listed as “401(k) contributions” or “retirement” and will be a percentage of your total pay.

One common suggestion is to save 15% of each paycheck toward your retirement, including any employer match. If that’s not doable, consider saving as much as you can now and increasing your contribution as you make progress toward your goals.

Generally, you can change your contribution rate at any time; changes typically go into effect based on plan provisions and payroll timing. To get started, log in to view your dashboard. Click on the 401(k) account card on the left. On the top menu, hover over “Contributions,” then click on “Manage contributions.” Follow the on-screen commands. You may need to work with your employer to update contributions if plan does not allow online contribution changes.

If you are enrolled in auto escalation by your employer, or you choose to enroll in this option yourself, your contributions will automatically increase, typically once a year until you reach a maximum percentage (often 15%). You may also choose to save more at any time by following the steps above.

To view or change yours, start by logging in. Look for the account you want to review. Navigate to “Investments” on the top menu, then scroll down to “Change investments.” From there, follow the on-screen prompts.

Start by logging in. On the left menu, click the box of the account to review. On the top menu, click “Overview,” then scroll down to “Beneficiaries.” Follow the on screen prompts to add or edit beneficiaries.

To view documents or other notices related to your account, start by logging in. On the left menu, click the box listing the account to review. Navigate to “Overview” on the top menu, then scroll down to “Plan information & forms.” Your Plan Summary and Summary Plan Description (PDF) offers lots of information about your organization’s retirement plan.

Check first to see if your plan allows you to roll over or roll in funds. Your Plan Summary and Summary Plan Description (PDF), found under “Plan information & forms,” offers details. To begin a rollover, download the Principal app. Log in to your account, then select the account to update. Scroll to the bottom of the screen and select “Rollovers.” If logged in through a desktop browser, click the box of the account to review. On the top menu, click on “Rollovers,” then follow the prompts. If you have questions or need assistance, call 855-808-0698, Monday–Friday, 7 a.m.–9 p.m. CT to talk to a dedicated rollover specialist.

Your distribution options depend on your organization’s plan, but generally you may be able to roll your savings into an IRA, keep your savings in your former employer’s plan (if allowed), roll your savings to a new employer’s plan (if available and allowed), or cash out the account. Find more details about each option by logging in to your account. Click on the box for your 401(k) account, then click on “My options” and answer the prompts. In addition, Principal will provide additional information on your options when you leave an employer.

Not all plans allow loans or withdrawals. Here’s how you can check if your organization’s plan allows you to take money out in the form of a loan or withdrawal: Log in to your account. On your dashboard, click on the box for your 401(k) account. In the top menu, click on “My options” and answer the prompts. If you would like more plan details, navigate to “Overview,” then scroll down to “Plan information & forms.” Find the Summary Plan Description; that booklet should have information about withdrawals or loans, if allowed. Read more about taking money out with a 401(k) loan or withdrawal.

If you have a plan through Principal, you may be able to request the required minimum distribution, or RMD, online. Here’s what to do. Log in to your account. On your individual dashboard, you’ll see a list of accounts on the left. Click on the relevant account. You’ll see an estimated RMD at the top of the screen. Click on “Start my RMD request.” Next, you’ll be asked to confirm your citizenship status and receive a distribution summary that also confirms federal tax withholding. You’ll then enter delivery details and complete a final review. Learn more about the dates and rules for RMDs.

Check with your human resources department. Or, log in to your account at Principal and click on the appropriate product card for plan documents and more.

Principal offers several different types of annuities, including variable and registered index-linked annuities, each designed to fit different goals and life stages. For more details, contact your financial professional.

Log in to your Principal account to view your dashboard. Click on “Personal summary,” then the product box “Annuity.”

For an annuity contract purchased through a financial professional, download: 

• Annuity service request form (PDF) for name changes, address change or lost contract 
• Change of ownership—annuity (PDF) available on nonqualified contracts only

Annuity contracts with a premium of $2 million or more require review before issuance. Subsequent deposits that push the account value over $2 million may require review prior to acceptance.

It depends. If you have a single-premium annuity, you cannot add money to the annuity after the contract is issued. Annual contribution limits on these annuities depend on whether the annuity contract is created with pre-tax or after-tax money. (Consult your tax advisor for more details.)

If you’ve already paid taxes on the funds you’re using to invest in your annuity, you do not have any IRS limits on how much you can contribute, though the issuing company may have limits in place. Your financial professional or tax advisor can help walk you through the options.

If you haven’t paid taxes on the funds you’re contributing to your annuity, there are IRS limits to your contributions, which often change each year. Check with your financial professional for details.

Start by logging in to your account at Principal. After you have logged in, in the top right corner, click the downward arrow next to your name. Navigate to “My profile” and use the links on that page to update your address, email, and phone number. Once you’re logged in, you can also see scheduled transfers and rebalance your account, too.

To view your current account beneficiaries, log in and click on the account card that you wish to update. Then, select the ”Overview” menu; scroll down to “Beneficiaries.” Remember, beneficiaries are account-specific designations. You’ll want to review your elections for all accounts and make sure they match your wishes. If you prefer, you can use the Beneficiary Change Form (PDF).

Annuitization is the process of converting an annuity into a series of structured payments. The payments are typically made to the annuitant, but could also be made to a spouse or beneficiary. These payment may be made for the life of the individual or for a set period based on the contracts features.

Very often, yes; they may be based on the type of annuity or the rider (i.e., add-on) you purchase. (All Principal annuities have a built-in death benefit.) Talk to your financial professional about options.

Some annuities have a minimum and maximum issue age. Talk to your financial professional about options.

It depends on the funds used to set up your annuity.

• If you used pre-tax funds to purchase the contract, you will pay income taxes on all withdrawals (including any gains) from your annuity. (You may see these referred to as a qualified annuity.)
• If you funded the annuity with post-tax dollars, or money you already paid income tax on, you will not pay income tax on withdrawals of contributions. In this case, only the growth in your annuity will be taxed when you withdraw it. (These are sometimes called nonqualified annuities.)

Consult your tax advisor for more details.

You declare annuity withdrawals on your income tax return. You’ll receive a form 1099-R form that lists annuity payments; you or your tax advisor can use that form to help in preparing your return. Consult your tax advisor for more details.

The IRS requires RMDs to start when you reach age 73, though there are exceptions. Generally, if you have a qualified annuity (created with pre-tax dollars), you must take an RMD.

Typically, you may withdraw funds from your annuity beginning at age 59½ without an IRS 10% early withdrawal penalty. Annuities generally allow an amount to be withdrawn every year without penalty. If you need funds from your annuity that is larger than the penalty free amount, you may have to pay a surrender charge. Ask your financial professional for details.

You may either contact your financial professional or Principal (see contact information below).

Once you have the name of your Principal annuity, you can view the performance of its investments. If you have a Principal variable or registered index-linked annuity, you will receive quarterly and annual statements. Existing fixed and income accounts receive an annual statement.

This option depends on your annuity. To determine if you can add money to your Principal annuity, please call us at +1-800-852-4450, Monday-Friday, 7 a.m.-6 p.m. CT, or contact your financial professional.

We’ll mail you a letter in January with information about the RMD for your Principal annuity. To make a one-time withdrawal of your RMD or inquire how to set up automatic withdrawals, call +1-800-852-4450, Monday-Friday, 7 a.m.-6 p.m. CT.

To withdraw money from your account, call us at +1-800-852-4450, Monday-Friday, 7 a.m.-6 p.m. CT.

Please call +1-800-852-4450 Monday-Friday, 7 a.m.-9 p.m. CT.

Regular mail: 
Principal Financial Group 
RIS Annuity Services M-001-E10 
PO Box 9382 
Des Moines, IA 50306-9382

Overnight mail: 
Principal Financial Group 
RIS Annuity Services M-001-E10 
711 High Street 
Des Moines, IA 50392-1770

A group annuity contract, issued by an insurance company, pays retirement benefits to members or beneficiaries under the contract. You select the terms for retirement payment, and then receive continued income.

You’ll receive a participation certificate by mail. Once you do, review the document carefully and call +1-800-247-7011 to make any corrections. You may also update your contact information by logging in and selecting “My profile.”

Your payment start date depends on your plan’s retirement age, which is often 65. Your monthly benefit is based in part on your salary and years of service. If you’re ready to begin payments, contact Principal at +1-800-247-7011 to request the required forms. Forms must be completed and returned within 180 days of your payment start date. If you don’t take action, we will reach out as you approach your retirement age.

Your beneficiary should notify us and we will guide them through the next steps and available benefits.

Your benefit may change if you get married or divorced. To report a change, visit our service and support page. Contact us at +1-800-247-7011 to report a change and review your options.

You are eligible for your defined benefit plan once you become vested, which is your workplace’s required time of service. Your projected benefit depends on factors determined by the plan; it’s probably different than every other coworker. Check with your HR department for details.

On your defined benefit “anniversary,” your employer will update your tenure (i.e., number of years on the job) and salary. You’ll receive a defined benefit statement with estimated retirement-age benefits. These are just estimates; your exact benefit is determined when you have an exact retirement date. 

For pensions serviced by Principal®, your defined benefit plan details are available on your individual dashboard:
•    Log in to your account.
•    Click on the product card; it may be listed as “defined benefit” or “cash balance.”
•    For your summary plan description, click on “Overview” in the top menu, then scroll to “Plan information and forms.”
•    If online benefit estimates are available from your plan, click on “Estimate benefits” in the top menu, then scroll to “New estimate.” (If an estimate isn’t available online, contact Principal via phone.)
 

No; you must report it on your taxes and pay income tax.

If you were vested in a pension from a previous employer, you can receive benefits even if you have another pension from a different employer.

Your plan must allow it first and allow lump sums; check your plan summary. And, consult your tax advisor.

Payout options, including age requirements, a survivor payout, and early withdrawals, vary based on plan. Log in and check your summary plan description for details.

That depends on your plan. Typically, survivor benefits go to someone close to your age, such as a spouse or sibling. Younger beneficiaries may be limited to a certain period for survivorship.

If a plan allows beneficiaries who are not spouses, they may receive a lump sum or installments. Your summary plan description will have more details.

In some situations, current and former spouses may be entitled to a portion of a partner’s defined benefit after the death of a participant, regardless of whether the person has begun receiving a pension. Spousal benefits depend on the plan and dependent elections made at retirement. In the event of a divorce, your ex-spouse may be entitled to benefits based on the plan, marriage length, divorce settlement, and other factors. If your plan offers a spousal benefit but your spouse chooses to decline it, they must do so in writing. 

Every plan requires some paperwork and may require a copy of a death certificate. The pension plan may also ask the surviving spouse to choose a benefit payout option. In some cases, the amount received will be taxed.

Your summary plan description outlines all spousal benefits; in addition, when eligibility begins, a spouse is notified. To learn more, contact your HR department. Or log in on Principal.com, click on the defined benefit card, navigate to “Overview” on the top menu, and scroll to “Plan information & details” for your plan summary and summary plan description.
 

It depends on when you formally request your payout and on the processing lead time of your program. Your summary plan description will detail processing time. 

It depends on your plan, which may allow you to elect a payout online by requesting a current estimate. Spousal consent may also be provided (if allowed) with a notary online. You may call Principal to find out if online paperwork is allowed; if not, you can complete a form to request the payout. 

If the plan allows it. However, a total dollar figure provided on a statement won’t match any cash-out value. For exact figures, log in to your account. Your exact total is determined at the time of payout.

No. Payouts remain the same until the end of your payout option, up to an amount guaranteed by the government, no matter what happens to the company. You can continue to check online on repetitive payments after your payouts begin. Your plan may also allow for cost of living increases; if so, the amount may increase.

Your employer or human resources department should have information to share on your plan’s specific rules. You can also log into your account at Principal and click on the “ESOP” product card. Under “overview,” you’ll find statements, account history and plan information and “education hub,” which includes a question and answer section.

Your employer or human resources department should have information to share on your plan’s specific rules. You can also log into your account at Principal and click on the “Equity Compensation” product card for more specific plan details.

Yes. You can contribute to a traditional IRA or Roth IRA if you meet IRS eligibility requirements. Annual contribution limits apply, and individuals age 50 or older may make additional catch-up contributions. You can fund your IRA by:

• contributing directly from a bank account (such as checking or savings)
• rolling over or transferring funds from another retirement account

Bank transfers typically take several business days. Rollover timing may vary depending on the source account.

You can update your beneficiaries at any time by logging in to your account. To make changes:

• Select the account you want to update
• Choose “View account details”
• Under “Overview,” select “Beneficiaries”

If available, you can also use the “My Beneficiary” tab to view and manage beneficiaries across accounts. Each account has its own beneficiary designation, so updates must be made individually.

A rollover IRA allows you to move retirement savings from an employer-sponsored plan into an IRA while maintaining the account’s tax-advantaged status. That helps:

• keep your savings tax-deferred (for pre-tax funds)
• consolidate retirement accounts
• maintain control of your account independent of an employer

You can also continue contributing to the IRA, subject to annual limits.

You should consider the differences in investment options and risks, fees and expenses, tax implications, services and penalty-free withdrawals for your various options. The retirement plan’s investment options may have investment expenses lower than similar options offered outside of the plan. There may be other factors to consider due to your specific needs and situation. You may wish to consult your tax advisor and legal counsel.

Rollover IRAs can be opened as either a traditional IRA or a Roth IRA.

• Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal
• Roth IRA: Contributions are made with after-tax dollars, and qualified withdrawals are tax-free. Roth IRAs must generally be open for at least five years before earnings can be withdrawn tax-free. Income limits may apply to new Roth contributions.

There are no IRS limits on the amount you can roll over from another retirement account.

It typically takes about seven to 10 business days for an electronic transfer to be completed. Paper checks may take longer. (The time may vary depending on your plan’s requirements.)

In general, you can withdraw earnings without penalty at age 59½ or older. For Roth IRAs, earnings may be withdrawn tax-free if:

• the account has been open for at least five years, and
• you are age 59½ or older

Withdrawals taken earlier may be subject to taxes and penalties, depending on the circumstances.

An RMD is the minimum amount you must withdraw from a traditional IRA each year once you reach age 73. If you do not take the full RMD by the deadline, the IRS may apply a penalty of up to 25% of the amount not withdrawn. Learn how your RMD is calculated and the deadlines to withdraw.

No. Roth IRAs do not require RMDs during the original account holder’s lifetime.

Traditional IRAs may include pre-tax contributions and tax-deferred earnings. When you take a distribution, those amounts are generally taxed as ordinary income. Withholding taxes at the time of withdrawal helps cover your annual tax obligation based on your current tax bracket.

No. Loans are not allowed from IRAs. However, you may take a distribution before age 59½ without a 10% early withdrawal penalty for certain qualified expenses, such as:

• first-time home purchase (up to $10,000)
• qualified education expenses
• birth or adoption expenses

Income taxes may still apply. You may also take a distribution and return the funds to the same or another IRA within 60 days to avoid taxes and penalties. This type of rollover is limited to one per 12-month period across all IRAs.

You can log in to your account at Principal for plan documents and specifics. For general details on benefits and considerations, distributions, tax implications, investments, go to the Principal nonqualified deferred compensation 457(b) learning center. If you have additional questions, check with your employer.

Principal Bank is an FDIC-insured bank and part of Principal Financial Group^®. It offers IRA-based savings products, including certificates of deposit (CDs) and money market accounts.

Principal Bank offers two IRA savings options:

• certificates of deposit (CDs): Fixed interest rates with terms of 12-60 months and a $1,000 minimum deposit
• money market IRAs: Variable, tiered interest rates with a $1,000 minimum deposit, limited to six withdrawals per month, and additional contributions allowed. Interest is compounded and credited quarterly.

An automatic rollover IRA is a retirement account opened on your behalf when you leave an employer and have a small balance in your retirement plan (typically under $7,000). 

If your former employer’s plan doesn’t allow small balances to remain, regulations allow the plan sponsor to move those funds into an IRA instead of issuing a cash payout. This may also occur if a plan is terminated.

Funds in an automatic rollover IRA earn interest and are FDIC-insured up to $250,000 per depositor. These accounts are generally intended as a temporary holding option until you decide how to manage your retirement savings.

If you recently left an employer and did not make an election for your retirement funds, the plan may have automatically transferred your balance into an IRA. This can also occur if a retirement plan terminates and no decision was made regarding your funds before the plan termination date.

Yes. Principal Bank IRA balances are FDIC-insured up to $250,000 per depositor.

Yes. A welcome letter is sent within 10 business days of account opening to the address on file. It contains account information as well as instructions for taking ownership of your account.

You have four options:

• convert the IRA to a Principal Bank CD or money market IRA, or another Principal product such as an annuity or mutual fund;
• add the contribution to the IRA
• roll over the funds to another IRA or employer-sponsored plan

You can still take ownership of your automatic rollover IRA. To do this, log in to your account using your existing credentials from your prior retirement plan. Select your Principal Bank® Automatic Rollover account and follow the online process.

Your IRA was opened using information from your former employer because you didn’t make an election for your retirement assets when you had a job change or were part of a plan termination.

For us to accept any direction from you, we must first confirm your identity and complete the process of opening the account. This process satisfies our legal requirement under the USA PATRIOT Act and the Bank Secrecy Act, which mandates that we confirm the identity of our customers.

By doing this you confirm your identity, acknowledge the terms of the IRA, and recognize Principal Bank as the custodian of the account.

Log in at principal.com using your existing credentials. If you don’t have login credentials, you’ll need to create a username and password using the online account setup process.

You may be able to add money to your account and set up recurring contributions online. Log in and select your Principal Bank account card on the left; then select “Make a contribution”.

Withdrawal options depend on the account type and amount:

• Up to $25,000: Request a withdrawal online.
• Over $25,000 or IRA CDs: Complete and submit a distribution form through your account. Completed forms can be faxed, mailed, or emailed to Principal Bank.

Yes. Traditional IRAs with pre-tax money require RMDs beginning at age 73. Your annual statement shows your RMD amount. You can also choose to have distributions automatically processed each year. If you are unsure if you are required to take an RMD, consult a financial professional or tax advisor.

Yes. You can sign up for electronic statements in your account by logging in and navigating to “My profile,” then to “Delivery preferences.” Statements are posted annually (typically each January) or mailed if you have not opted in.

You can start the process by calling +1-800-672-3343, Monday-Friday, 7 a.m.–7 p.m. CT, to discuss converting your current account to a CD or money market IRA.

•  Phone: 800-672-3343 , Monday–Friday, 7 a.m.–7 p.m. CT 
•  Mail: PO Box 9351, Des Moines, Iowa 50306-9351 
•  Overnight mail: 711 High Street, Des Moines, IA 50392

Investment options include mutual funds, stocks, bonds, and exchange-traded funds (ETFs).

Log in at principal.com using your existing credentials. If you don’t have login credentials, you’ll need to create a username and password using the online account setup process.

You can reach us at +1-800-222-5852, Monday–Friday, 7 a.m.–7 p.m. CT.

You can add funds in three ways:

• Log in to link your bank account and transfer funds.
• Call +1-800-222-5852 (a bank accountdy be on file). If you don't have a bank account on file, go online to add one or complete and return the electronicsfer form (PDF).
• Mail a check with a deposit to Principal Funds. Checks can be made payable to: Principal Life Insurance Company, Principal Funds, Principal Financial Group, or Principal Securities.
  • Regular mail
    • Principal Funds, PO Box 219216, Kansas City, MO 64121-9216
  • Overnight mail
    • Principal Funds, 801 Pennsylvania Ave, Ste 219216, Kansas City, MO 64105-1307

To withdraw money from your account, log in. On the left side of your dashboard, click on the “Principal Funds” account, then on “Transactions”. Or, call us at +1-800-222-5852.

Your transfer is typically to a bank account. If you don’t currently have a bank account on file and want to do a direct deposit, complete and return the Electronic Funds Transfer form (PDF). The form is processed within three business days after receipt. After a 15-day waiting period to ensure the safety and security of your account, the distribution request can be processed over the phone.

The receiving institution must submit transfer request paperwork that includes

• Liquidation instructions: This indicates that the funds are to be liquidated or transferred as cash to the new institution. This cannot be done ahead of the transfer. After we have received the transfer request with proper instructions, the account will be liquidated and sent to the new institution. 
• Letter of acceptance: Must be signed by the receiving custodian. 
• Medallion signature guarantee (MSG): Required for transfers over $100,000.

All funds will be sent as a check via regular mail unless otherwise specified on the transfer request. Please note that some accounts may have fees for removal of funds.

Yes. Traditional IRAs with pre-tax money require RMDs beginning at age 73. If you’re required to take an RMD this year, you’ll receive a notification from Principal. Consult a financial professional or tax advisor with additional questions.

Find step-by-step instructions to create your online account.

Log in on your desktop or with the Principal^® app to view your personal dashboard. It includes information about your account, statements, and more. (Get login help.)

Call us Monday-Thursday, 7:30 a.m.-6 p.m. CT, and Friday, 7:30 a.m.-5:00 p.m. CT, at +1-888-774-6267 option 2, 2.

With a Principal SimpleInvest IRA, you provide responses to questions about your age, retirement goals, and investment risk tolerance. Our automated investor will recommend a diversified investment mix of our mutual funds and ETFs.

Log in at principal.com using your existing credentials. If you don’t have login credentials, you’ll need to create a username and password through the online account setup process.

• Email: advisedservices@principal.com 
• Phone: +1-866-412-0770 Monday–Friday, 8 a.m.–5 p.m. CT.

Log in to your account, link a personal checking or savings account and transfer funds using the “Transfer Money” tab. A transfer may take a few business days to complete.

If you have additional funding questions, review our detailed funding instructions.

Withdrawals must be requested online through your account (not available via the Principal app). On your dashboard, look for your Principal SimpleInvest card on the left. Click into the account and view the “Transactions” tab on the dashboard.

• Contact us if:the withdrawal is $50,000 or more (check)
• the withdrawal is $100,000 or more (electronic transfer)
•  the withdrawal would reduce your balance below the required $5,000 minimum balance

Yes. Traditional IRAs require RMDs beginning at age 73. If you are required to take an RMD this year, watch for a notification from Apex, your Principal SimpleInvest account custodian. Consult a financial professional or tax advisor for additional questions.

Check with your human resources department. Or, log in to your Principal account and click on the “trust and custody account” product card.