Help with IRAs

IRAs and Roth IRAs both have contribution limits based on income, as well as catch-up contribution limits if you are age 50 or over. As long as you meet the applicable IRA requirements, you can make annual contributions up to the limit, and once you’ve met the limit can make catch-up contributions.

A rollover is simply when you move retirement savings from one account into another. It’s an action you take, not an account called a rollover. It’s often something you do after leaving a job, or if your previous plan requires small amounts to be moved.

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

In general, you must be over age 59½ to be eligible for withdrawals of IRA earnings. A Roth IRA must be open for 5 years and you must be over age 59½ to be eligible for withdrawals of those earnings.

In general, you can change your beneficiaries at any time. To get started, log in (view any Principal.com page and click on the button on the upper right corner). On your dashboard, look on the left side to find the account you want to update. Click “I want to” and scroll to “View account details.” Under “Overview” on the top menu, scroll to "Beneficiaries." If you're on the mobile app, click on each account, then on the three horizontal lines in the top right corner; you'll find "Beneficiaries" there.

Or, if your dashboard has a My Beneficiary tab, click and view a list of your current accounts. Click on each account separately to view current beneficiaries. Each account has its own beneficiary designations, so if you’re making a change, you must change each one separately.

No, you may not take a loan from an IRA. However, you may take a distribution from your IRA prior to age 59½ without a 10% early distribution penalty to cover certain costs—for example, making a down payment on your first home (up to $10,000), paying for higher education, and for certain birth and adoption expenses. Taxes on the distribution may still apply.

Additionally, you can take money out of your IRA and return it within 60 days—this is also called a rollover—without paying taxes or penalties on the amount you put back into those savings. You can do this once in a 12-month period for any IRA.

Every plan is different, with varying allowable options. For more insight into how these exceptions or an early distribution could impact you, consult a financial professional or tax advisor.

A traditional IRA is created with money that may be fully or partially deductible depending on your tax filing status, so you could have a tax advantage on both contributions or earnings. When you withdraw money from a traditional IRA, you must then pay the income tax on those funds, based on your current income tax bracket.

A Roth IRA is created with post-tax money; you already paid income tax on the contributions in your account and your earnings have been growing tax-free. This means you don’t have to pay taxes on the money you take from a Roth IRA after age 59½, assuming the account is at least five years old.

An RMD is the minimum amount you must withdraw per the IRS from your IRA each year upon attaining a certain age. You must begin taking RMDs for the year you turn age 73 and annually thereafter. If you withdraw less than your RMD, or miss the deadline, you may be subject to a tax penalty of up to 25% of the amount you were required to withdraw for the year.

Learn how your RMD is calculated and the deadlines to withdraw.

No, it is not.

With a Principal^® IRA, you can choose from a range of investment options such as mutual funds, stocks, bonds, and exchange-traded funds.

You can contribute to all of your Principal accounts either through direct contributions from a bank account, such as a personal checking or savings account, or by rolling over or transferring funds from another retirement account. A transfer from a bank account typically takes several days to complete, while the time for a rollover varies. To get started, log in and click on the “Transfer Money” tab. Review the detailed steps on making a contribution.

Log in from an online browser. On your dashboard, look for your IRA card on the left. Click into the card, and select "Redeem" from the Account Actions dashboard. If you don’t currently have a bank account on file and want the funds to be a direct deposit to your bank account, complete and return the Electronic Funds Transfer form (PDF). The form is processed within three business days after receiving it. After a 15-day waiting period to ensure the safety and security of your account, the distribution request can be processed over the phone.

Remember: If you're under 59½, your distribution may be subject to a 10% additional tax.

If you are required to take an RMD, watch for a notification from Principal. Not sure if you have to take an RMD? Consult a financial professional or tax advisor.

Either one works. You may email advisedservices@principal.com or call+1-866-412-0770 Monday-Friday, 8 a.m.-5 p.m. CT.

With a Principal SimpleInvest IRA, our automated investor will recommend a diversified investment mix of our mutual funds and ETFs based on your answers to a few questions (age, retirement goals, investment risk tolerance).

You can link a bank account like your personal checking or savings account to your Principal SimpleInvest IRA at any time and then transfer money from your bank account into your IRA. It may take a couple days for the money to transfer. To get started, log in to your account and click on the "Transfer Money" tab.

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

You may request withdrawals online. Log in from a browser (withdrawals are 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.

If the withdrawal amount is $50,000 or more to be paid by check, is $100,000 or more to be paid by automated transfer, or is an amount that will bring your balance below the required minimum balance of $5,000, please contact us at +1-866-412-0770, Monday-Friday, 8 a.m.-5 p.m. CT.

If you are required to take a RMD, watch for a notification from Apex, your Principal SimpleInvest account custodian. Not sure if you have to take an RMD? Consult a financial professional or tax advisor.

I need to talk to someone at Principal about my Principal SimpleInvest IRA. Can I call or email?

Either one works. You may email advisedservices@principal.com or call+1-866-412-0770 Monday-Friday, 8 a.m.-5 p.m. CT.

You may open an IRA or Roth IRA with Principal Bank. In addition to the standard features and tax advantages, Principal Bank IRAs and Roth IRAs come with the added security of FDIC insurance up to $250,000 per depositor. As with every IRA, earnings in a Principal Bank IRA grow tax-deferred until withdrawal after a five-year holding period, and certain contributions may be tax-deductible. You'll be taxed on the pre-tax savings when you withdraw it in retirement. To contribute to a traditional IRA, you or your spouse must have earned income in the year the contribution is made; find contribution limits here.

Your former employer has an agreement in place with Principal Bank   to transfer retirement money and open an automatic rollover IRA on your behalf if:

• You’ve left a workplace and your previous employer doesn’t allow former employees with retirement plan account balances of $7,000 and under to keep their funds in its retirement plan. Rather than paying you the balance in cash, the law allows the employer to automatically roll over savings of $7,000 and under to an IRA.
• The employer closes its retirement plan.

In both cases, you receive information about the options for the account, including applicable fees and a date by which you must decide what to do with the money. You may:

• Convert your Principal Bank Automatic Rollover IRA to a Principal Bank CD or money market IRA, or another product with Principal such as an annuity or mutual fund.
• Keep the Principal Bank IRA. You can also make additional deposits to this account.
• Roll over your money to an IRA at another financial institution or another employer-sponsored retirement savings plan.
• Withdraw your funds. Keep in mind that if you are under age 59½ you may pay penalties on the withdrawal.

If you don’t make a decision by that date, the retirement money is transferred via an automatic rollover to an IRA. (The account may be called a Safe Harbor or Plan Term IRA, a Money Market,   or an Assured Savings.) Depending on your employer’s plan, it may say an account valued under $100 is to be distributed in cash.

If you have a Principal Bank Automatic Rollover IRA (Safe Harbor or Plan Term IRA), a Money Market,   or an Assured Savings, you can request a withdrawal online up to $25,000. Log in to get started. If you would like to request a withdrawal of more than $25,000 or you have an IRA CD,   log in to access a distribution form through your online account. You can fax, mail, or email the completed form to Principal Bank.

Don’t have an online account yet? Go to Principal.com and click “log in” on the upper right corner on any page to set up an online account.

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” to get started.

Yes; all traditional IRAS have an RMD beginning at age 73. To take your RMD from a CD, Money Market, or Automatic IRA, complete and return the RMD form. You can also elect to have your RMD automatically distributed each year.

Look for your RMD on your annual statement. If you elected to receive electronic statements, new statements are posted to your online account each January. If you haven’t signed up for electronic delivery of statements, we’ll mail your statement to the address we have on file.

To sign up for electronic delivery, log in to your account. Go to  “My profile” and under  “Preferences” select  “Delivery preferences.”

You have four options:

1. Phone: +1-800-672-3343, Monday-Friday, 7 a.m.-7 p.m. CT
2. Mail:
   • Principal Bank
     • regular mail
       PO Box 9351
       Des Moines, IA 50306-9351
     • overnight mail
       711 High Street
       Des Moines, IA 50392
3. Fax: +1-866-431-8410
4. Email: principalbankcustomerforms@principal.com. Please note: This is not a secure email address and is used solely to process forms, not for responses. Accepted formats for attached documents are PDF, PNG, TIF, and JPEG files.

You can add to your IRA in three ways:

• Log in to link your bank account and then add to your retirement savings.
• Call us at +1-800-222-5852. However, you must have a bank account on file to add to your account by phone. If you don't have a bank account on file, go online to add one or complete and return the electronic funds transfer form (PDF).
• Print a deposit slip (PDF) and mail it with a check 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
      430 W 7th St, Ste 219216
      Kansas City, MO 64105-1407.

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 receiving it. After a 15-day waiting period to ensure the safety and security of your account, the distribution request can be processed over the phone.

You may call us at +1-800-222-5852, Monday-Friday, 7 a.m.–7 p.m.