Your retirement savings options

What are my four options for my old employer's retirement plan?

Compare all your options.

	Keep in former employer’s plan	Roll to an IRA	Move to a new employer’s plan	Cash out your account
Money stays invested	Yes	Yes	Yes	No
Can add money to the account	No	Yes	Yes	No
Wide range of available investment options	N/A	Yes	N/A	No
Can roll in outside accounts	No	Yes	N/A	No
Can take out a loan	No	No	N/A	No
Avoid tax penalties	Yes	Yes	Yes	No

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Your money will stay invested in the market, which means it remains open to potential market fluctuations. Your money also stays tax deferred (you don't have to pay taxes on it). Remember investing involves risk, including possible loss of principal.

Keep in former employer's plan
Once you leave a job, you can't keep adding money to your account in that retirement plan.
Roll to an IRA
You can contribute to an IRA any time, including setting up automatic payments from your bank account.¹
Move to new employer's plan
If you're moving to a new job that offers a retirement plan, you can contribute money into your account directly from your paycheck.

Keep in former employer's plan
Employer sponsored retirement plans generally have more limited investment options, but it varies by plan.
Roll to an IRA
IRAs generally offer a wider range of investments, and some IRA providers may offer investment advice for an extra fee.
Move to new employer's plan
Employer sponsored retirement plans generally have more limited investment options, but it varies by plan.

Keep in former employer's plan
You can't roll outside accounts into a former employer's plan.
Roll to an IRA
You can roll outside accounts into an IRA at any time to consolidate your savings. As long as both accounts are the same money type—Roth to Roth, pre-tax to pre-tax.
Move to new employer's plan
You may be able to roll outside accounts into a new employer's plan to consolidate your savings; check with your employer.

Keep in former employer's plan
Once you leave your job, you can't take out a loan from your account. But you might be able to withdraw part of your contributions as long as the remaining account balance remains above the plan's limit. Taxes and fees may apply to any amount withdrawn.
Roll to an IRA
You can't take out a loan, but you might be able to withdraw part of your contributions for things like college expenses or buying your first home. Taxes and fees may apply to any amount withdrawn.
Move to new employer's plan
If the new plan allows, you may be able to take out a loan from your account.

¹ Subject to contribution limits set by the IRS.

Financial professionals are sales representatives of the members of the Principal Financial Group®. They do not represent, offer, or compare products and services of other financial service organizations.

You should consider the differences in investment options and risks, fees and expenses, tax implications, services and penalty-free withdrawals for your various options. There may be other factors to consider due to your specific needs and situation. You may wish to consult your tax professional or legal counsel.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Investment and Insurance products are:

Not insured by the Federal Deposit Insurance Corporation (FDIC) or Any Federal Government Agency,
Not a Deposit, Obligation of, or Guaranteed by, Principal Bank or Any Banking Affiliate
May Lose Value, Including Possible Loss of the Principal Amount Invested.

Your retirement savings options