Let us help you decide.

Our registered financial professionals can walk through your retirement goals and provide personalized advice.

Call 800-247-8000, ext. 2529.

This call is complimentary and there is no obligation.

Your retirement account is closing soon. You’ll need to decide what’s next.

Review the pros and cons of your options below to help decide what’s best for you. If you do not decide before the deadline, your money will move to the plan’s automatic distribution option and may not align with your goals.

You have 3 options for your account.

Move your savings to an individual retirement account (IRA). Not familiar with IRAs? Here’s a refresher.

This could be a good fit for you if...

  • You want to keep your savings invested, with the same tax advantages.
  • You want more investment options—and you’d like a professional to help you pick a mix of investments for you.
  • You want to be able to save for retirement in 1 spot that stays with you, even if you end up working somewhere without a retirement plan.
  • You want the greater flexibility and control of an account you own individually.

But keep in mind…

  • You can’t borrow money from an IRA (although you might be able to withdraw contributions for certain expenses).
  • You generally need to be at least age 59½ to withdraw your money penalty-free, compared to age 55 for most employer plans (if you leave your employer).
  • Investment expenses and account fees may be higher than those of employer plans.

Move your savings to your current employer’s plan (if one’s available).

This could be a good fit for you if...

  • You want to keep your savings invested, with the same tax advantages.
  • You like the convenience of saving for retirement directly out of your paycheck.
  • You’d rather pick from a set list of investment options and you like the ones your employer’s plan offers.
  • You might want to borrow money from your account someday.

But keep in mind…

  • If you want to roll outside savings into your account, you’ll need to check with your employer first; not all plans allow it.
  • Not all plans allow loans; check with your employer.
  • If you change jobs in the future, you’ll have to decide what to do with your account (just like now).

You can take some or all of your savings as cash.

This could be a good fit for you if...

  • You need cash now.

But keep in mind…

  • You'll pay taxes on the amount you withdraw, right away.
  • If you're under age 59 1/2, you may also pay a 10% penalty.
  • The extra cash could bump you to a higher tax bracket.
  • You might not have enough savings when you retire.
Roll your money to an IRA

Move your savings to an individual retirement account (IRA). Not familiar with IRAs? Here’s a refresher.

This could be a good fit for you if...

  • You want to keep your savings invested, with the same tax advantages.
  • You want more investment options—and you’d like a professional to help you pick a mix of investments for you.
  • You want to be able to save for retirement in 1 spot that stays with you, even if you end up working somewhere without a retirement plan.
  • You want the greater flexibility and control of an account you own individually.

But keep in mind…

  • You can’t borrow money from an IRA (although you might be able to withdraw contributions for certain expenses).
  • You generally need to be at least age 59½ to withdraw your money penalty-free, compared to age 55 for most employer plans (if you leave your employer).
Log in to explore rolling to an IRA

Or call us at 800-247-8000, ext. 2529.

What happens in an IRA rollover?

Great question! It depends on what you want to do.

  • If you roll to an IRA with Principal, we’ll open your account over the phone or online and move your money automatically. Why choose an IRA with Principal?
  • If you roll to an IRA somewhere else, you’ll work with that firm to open an account and we’ll send you a check to deposit into it.
Move your money to a new employer's plan

Move your savings to your current employer’s plan (if one’s available).

This could be a good fit for you if...

  • You want to keep your savings invested, with the same tax advantages.
  • You like the convenience of saving for retirement directly out of your paycheck.
  • You’d rather pick from a set list of investment options and you like the ones your employer’s plan offers.
  • You might want to borrow money from your account someday.

But keep in mind…

  • If you want to roll outside savings into your account, you’ll need to check with your employer first; not all plans allow it.
  • Not all plans allow loans; check with your employer.
  • If you change jobs in the future, you’ll have to decide what to do with your account (just like now).
Cash out your account

You can take some or all of your savings as cash.

This could be a good fit for you if...

  • You need cash now.

But keep in mind…

  • You'll pay taxes on the amount you withdraw, right away.
  • If you're under age 59 1/2, you may also pay a 10% penalty.
  • The extra cash could bump you to a higher tax bracket.
  • You might not have enough savings when you retire.

Why work with Principal?

One of the World's Most Ethical Companies. A member of the FORTUNE 500®. A global company with over $700 billion in assets under management, serving 70 million customers throughout Asia, Australia, Europe, Latin America, and North America.

See what Principal can offer you
Reach out
Let Principal help you plan for your future.
Jenny Borcherding, senior financial counselor, Principal Financial Group
Our goal is to explain your options in a way that's easy to understand and relate to your situation—so you feel confident you're making the right decision.
Jenny Borcherding, Senior Financial Counselor, Principal Financial Group

Footnotes

Log in to view your deadline and learn more about your plan’s automatic distribution option. Ethisphere Institute, March 2025. This is the 14th time Principal has been recognized by Ethisphere. Data for the trailing twelve months ended March 31, 2025, unless otherwise noted.

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.