Safe Harbor and Plan Termination IRA Help

A Safe Harbor IRA is a qualified retirement account, which was automatically rolled over by your former retirement plan sponsor (employer) to Principal Bank. This automatic rollover occurred when you left an employer or when an employer terminated a retirement plan (Plan Term IRA) and you did not make an election of benefits for the funds in your employer-sponsored retirement plan.

The Federal Deposit Insurance Corporation (FDIC) protects funds in your Safe Harbor or Plan Term IRA for up to $250,000 per depositor. Principal Bank pays a competitive interest rate on these accounts.

The law now requires that retirement plan mandatory distributions of $1,000 or more be automatically rolled into an IRA instead of being paid out in cash, unless you elect otherwise. If you recently left an employer and did not make a decision about what to do with the funds left in your employer-sponsored retirement plan, the funds were moved into a Principal Bank Safe Harbor or Plan Termination IRA on your behalf.

A Welcome Kit was sent to the address we received from the retirement plan sponsor when the account was opened. This Welcome Kit contains account information as well as instructions for validating your identity.

Even if you have not yet received your Welcome Kit from Principal Bank, we can still validate your identity and confirm your account is at Principal Bank. Call 800-672-3343 for help.

Your IRA was originally established for you by your previous retirement plan sponsor (employer) because you did not make an election for your retirement assets at the time when you either experienced a job change or were part of a plan termination.

To open this account, we relied upon information about you that was provided by your previous plan sponsor. In order for us to accept any direction from you now, 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 are able to confirm the identity of our customers.

By doing this you are confirming your identity and simply acknowledging the terms of the IRA, and recognizing Principal Bank as the custodian of the account.

Have a Principal Bank IRA?
You can log in to access account information online.
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Get help setting up a username and password or get details on how to log in to access account information online.
Converting a Safe Harbor or Plan Term IRA

Call us at 800-672-3343 to discuss converting your current account to a CD or money market IRA, and get the appropriate forms to get started.