Review your options

Keep your retirement savings on track.

Review your options and consider taking action today.

You typically have four choices for your savings.

Click on each of the options below to learn more.
    Roll your money

    Roll your money into an Individual Retirement Account (IRA).

    With a rollover, you move your money from your former employer’s retirement plan to an IRA. Learn more about IRAs.

    Pros

    • You can keep your savings invested and have the same tax advantages.
    • You can save for retirement in one account that stays with you, no matter what job you have. Plus, you can consolidate other eligible retirement accounts into your IRA for easy tracking.
    • You typically have more investments options—a financial professional can help you choose a mix of investments that's right for you.
    • You have greater flexibility and control of a retirement savings account you own.

    Cons

    • You can't borrow money from an IRA, though you might be able to withdraw contributions for certain types of expenses.
    • Generally, you need to be at least 591/2 years old to withdraw your IRA savings penalty-free, compared to age 55 and separated from employment for most employers plans.
    • Investment expense and account fees may be higher than those of employer plans.
    Log in to explore rolling to an IRA
    Keep your money

    Keep your money where it is.

    You can leave your money in your former employer's plan as long as their retirement plan allows it.

    Pros

    • You can keep your savings invested and have the same tax advantages.
    • You can maintain current investment options, if you like them.
    • You can continue to use the tools and resources you have access to under the plan’s service provider.

    Cons

    • You can't add more money to this account (since it's tied to your old job) or borrow from it.
    • Your savings is limited to the investment options and features of your old employer’s plan.
    Log in to explore staying
    Move your money

    Move your money to your new employer's plan.

    You can move your retirement savings to your current employer's plan, if allowed.

    Pros

    • You can keep your savings invested and can have the same tax advantages.
    • You have the convenience of saving for retirement directly from your paycheck.
    • You can pick from a set list of investment options through your current employer's plan.

    Cons

    • If you want to roll outside savings into your account, you'll need to check with your employer first. (Not all plans allow that.)
    • Not all plans allow loans or distribution of rollover funds; check with your employer.
    • If you change jobs in the future, you may have to decide what to do with your account (just like now).
    Log in to explore moving to a new plan
    Cash out your money

    Cash out your account.

    You can take some or all of your retirement savings as cash from your former employer’s plan.

    Pros

    • You have cash right now, if you need it.

    Cons

    • You'll pay taxes on the amount you withdraw—right away.
    • You may also be charged a 10% penalty if you are under age 591/2.
    • The extra cash could bump you to a higher tax bracket for the year of distribution.
    • You might not have enough savings when you retire.
    Log in to explore withdrawing

    Learn more about your options in our printable PDF
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    Call us today and a Principal® financial professional will walk you through your options.

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    Common questions about IRAs

    What is an IRA? What is a rollover IRA, and how does it work?
    An individual retirement account (IRA) is a tax-advantaged investment account that helps you save for retirement. A rollover IRA is simply an IRA that's used to receive (rollover) your retirement funds from an employer sponsored plan such as a 401(k) or 403(b) account after you leave your job.
    How do I know which type of IRA is right for me–traditional, Roth, or both?

    This generally depends on the type of money in your original account and your tax situation. It's common to roll pre-tax money into a traditional IRA, and post-tax money into a Roth IRA. Your tax adviser can help you think through these considerations.
    What is a Roth IRA?

    A Roth individual retirement account (IRA) is an after-tax retirement savings account. Why after tax? You create and add to a Roth IRA with money that's already been taxed. That means that both growth and withdrawals are not taxed when you take a qualified distribution. If you think you might be in a higher tax bracket in retirement, saving in a Roth IRA now may be extra advantageous.
    Can I contribute more money to my IRA?

    Yes. Once you roll over your retirement savings to an IRA, you can make contributions to your new account. The IRS has a limit on how much you can add to the account. While Roth IRAs have income limits for contributions, traditional IRAs do not. To contribute to a traditional IRA, you must have earned income, but there's no maximum limit.

    Can I withdraw money from my rollover IRA?

    In a traditional IRA, you can withdraw contributions and earnings penalty-free at age 59 ½, or earlier for certain hardships. You have to start taking required minimum distributions after age 73.

    In a Roth IRA, you can withdraw contributions at any time, without penalty. You can withdraw earnings, penalty-free at age 59 ½, or earlier for certain hardships, as long as you've followed the rules of a Roth IRA.  You're not required to withdraw your money at any age.

    Why Principal

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    Experience

    Our financial professionals will explain your options and together navigate what may be best for you.
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    Confidence

    Informed and supported, you can feel confident you’re making the right choices for your financial future.
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    Consistency

    We don’t chase fads, and we’ve been helping clients like you for over 80 years.

    Footnotes

    Your account must be open for 5 years and you must be over 59 ½ to be eligible for qualified tax-free withdrawals of earnings. Deductibility of contributions is dependent upon coverage by an employer-sponsored retirement plan for you or your spouse and your Modified Adjusted Gross Income (MAGI). Providing retirement plan services since 1941.

    Investing involves risk, including possible loss of principal.

    Investment and Insurance products are:

    • Not Insured by the FDIC or Any Federal Government Agency
    • Not a Deposit or Other Obligation of, or Guaranteed by, Principal Bank or Any Bank Affiliate
    • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested


    This document is intended to be educational in nature and is not intended to be taken as a recommendation.

    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.

    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 and Form CRS for Principal Advised Services, LLC. Insurance products and plan administrative services provided through Principal Life Insurance Company®. 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.

    Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and service marks of Principal Financial Services, Inc., in various countries around the world.