What's next for your retirement savings?You left your job recently. And since you saved for retirement (nice work, by the way!), you have options for the savings in your former employer's plan.It's a big decision, but our quiz is a great place to start.
You'll answer a few simple questions.
Based on your answers, we'll identify an option(s) that may help you determine if it meets your needs.
The results will suggest potential options, but they are not a personalized recommendation or detailed review.
It only takes a few minutes, so let's get started!
Let's get started
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Investing involves risk, including possible loss of principal.Our one-on-one conversation includes education or, if requested, point-in-time advice service regarding your retirement plan account. For additional assistance, consult with appropriate individuals including counsel, financial professionals or other advisors on all matters pertaining to business, legal, tax, investment or accounting obligations and requirements.Principal Advised Services is a federally-registered investment adviser. Registration does not imply a certain level of training or skill. Principal Advised Services does not guarantee that the results of their advice, recommendations or objectives of a strategy will be achieved. Please refer to the Form ADV Advice Brochure (PDF) and Form CRS (PDF) for Principal Advised Services, LLC. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.
Compare all your options
Keep in former employer's planRoll to an IRAMove to new employer's planCash out your account
Money Stays Invested
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).
Can add money to the account
Once you leave a job, you can't keep adding money to your account in that retirement plan.You can contribute to an IRA any time, including setting up automatic payments from your bank account.If you're moving to a new job that offers a retirement plan, you can contribute money into your account directly from your paycheck.
Wide range of available investments
Varies
Varies
Employer plans generally have more limited investments options, but it varies by plan. Some plans may offer investment advice.IRAs generally offer a wider ranger of investments, and some plans may offer investment advice.Employer plans generally have more limited investments options, but it varies by plan. Some plans may offer investment advice.
Can roll in outside accounts
Varies
You can't roll outside accounts into a former employer's plan.You can roll outside accounts into an IRA at any time to consolidate your savings.You may be able to roll outside accounts into a new employer's plan to consolidate your savings; check with your employer.
Can take out a loan
Varies
Once you leave your job, you can't take out a loan from your account.You can't take out a loan, but you might be able to withdraw part of your contributions penalty-free for things like college expenses or buying your first home.If the new plan allows, you may be able to take out a loan from your account.
Avoid tax penalties
Select
Select
Select
Select
More details
Pros
  • Your money stays invested, meaning it's open to potential market fluctuations.
  • You'll have access to the same investments you do today.
  • You can move your money to another employer or an IRA later if you want to.
Cons
  • You can't add more money to the account.
  • Your investment options are limited to what the plans offers.
  • Your former employer can change the plan or investments at any time (they're required to notify you first).
  • Plan loans aren't allowed.
Select this option
More details
Pros
  • Your money stays invested, and you can keep adding money to your account.1
  • An IRA belongs to you individually and isn't tied to your employer.
  • You can roll other outside accounts into your IRA to consolidate your savings.
  • You can roll other outside accounts into your IRA to consolidate your savings.
Cons
  • You can't contribute directly from your paycheck into an IRA, but you can often set up automatic payments from a checking or savings account.
  • You can't take a loan from an IRA.
  • Expenses may be lower in your employer plan.
Select this option
1. Subject contribution limits set by the IRS.
More details
Pros
  • Your money stays invested.
  • You can keep adding money to your account.
  • You might be able to take a loan from your account, if allowed.
  • You might be able to roll in other outside accounts to consolidate your savings.
Cons
  • You're limited to the investment options the new plan offers.
  • Your employer can make changes to the plan and its investments (they're required to notify you first).
  • If you end up leaving your job, you'll have to decide what to do with the account (just like now).
Select this option
More details
Pros
  • You'll have access to your money, if you need it now.
Cons
  • You'll pay taxes on the amount you withdraw.
  • If you're under age 59½, you'll likely pay a 10% penalty.
  • The extra money could bump you to a higher tax bracket.
  • The money you withdraw won't be there in retirement when you need it.
Select this option
Subject contribution limits set by the IRS.If under age 59 1/2 or under age 55 and separated from service, you may also pay a 10% penalty.
To learn more about your distribution options, download our printable PDF
Compare all your options
Money Stays Invested
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).
Can add money to the account
Once you leave a job, you can't keep adding money to your account in that retirement plan.
You can contribute to an IRA any time, including setting up automatic payments from your bank account.
Wide range of available investments
Varies
Employer plans generally have more limited investments options, but it varies by plan. Some plans may offer investment advice.
IRAs generally offer a wider ranger of investments, and some IRA providers may offer investment advice.
Can roll in outside accounts
You can't roll outside accounts into a former employer's plan.
You can roll outside accounts into an IRA at any time to consolidate your savings.
Can take out a loan
Once you leave your job, you can't take out a loan from your account.
You can't take out a loan, but you might be able to withdraw part of your contributions penalty-free for things like college expenses or buying your first home.
Avoid tax penalties
Select

More details
Select

More details
Pros
  • You'll have access to your money, if you need it now.
Cons
  • You'll pay taxes on the amount you withdraw.
  • If you're under age 59½, you'll likely pay a 10% penalty.
  • The extra money could bump you to a higher tax bracket.
  • The money you withdraw won't be there in retirement when you need it.
Select this option
Pros
  • Your money stays invested, meaning it's open to potential market fluctuations.
  • You'll have access to the same investments you do today.
  • You can move your money to another employer or an IRA later if you want to.
Cons
  • You can't add more money to the account.
  • Your investment options are limited to what the plans offers.
  • Your former employer can change the plan or investments at any time (they're required to notify you first).
  • Plan loans aren't allowed.
Select this option
Pros
  • Your money stays invested, and you can keep adding money to your account.1
  • An IRA belongs to you individually and isn't tied to your employer.
  • You can roll other outside accounts into your IRA to consolidate your savings.
  • You can roll other outside accounts into your IRA to consolidate your savings.
Cons
  • You can't contribute directly from your paycheck into an IRA, but you can often set up automatic payments from a checking or savings account.
  • You can't take a loan from an IRA.
  • Expenses may be lower in your employer plan.
Select this option
1. Subject contribution limits set by the IRS.Pros
  • Your money stays invested.
  • You can keep adding money to your account.
  • You might be able to take a loan from your account, if allowed.
  • You might be able to roll in other outside accounts to consolidate your savings.
Cons
  • You're limited to the investment options the new plan offers.
  • Your employer can make changes to the plan and its investments (they're required to notify you first).
  • If you end up leaving your job, you'll have to decide what to do with the account (just like now).
Select this option
Subject contribution limits set by the IRS.If under age 59 1/2 or under age 55 and separated from service, you may also pay a 10% penalty.
To learn more about your distribution options, download our printable PDF
Want to open an IRA? Try ours.With Principal®, you get an IRA tailored to help meet your specific needs—plus ongoing service, support and resources to help you reach your financial goals.
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This quiz provides general information, is not intended as an individualized recommendation or advice, and does not create an ongoing advisory relationship.This document is intended to be educational in nature and is not intended to be taken as a recommendation.You should consider the differences between the 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 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.Insurance products and plan administrative services provided through Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392.