Important information
for retirement plan participants
Know your options:
What to do with your retirement savings
Its important to understand the options for the savings you have
in your former employer’s retirement plan. If you are eligible to
take your money out (this is known as a distribution), there are
typically four possible options.
There are advantages and drawbacks for each option. You should
consider the differences in investment options, fees and expenses,
tax implications, services and penalty-free withdrawals.
This summary can help you identify some important considerations.
There may be other factors to consider due to your specific needs
and situation. You may wish to consult with your tax or legal advisor.
Retirement Savings Options
• Roll savings into an individual
retirement account (IRA)
• Keep savings in your former employer’s
retirement plan
• Roll savings to your new employer’s
retirement plan
• Cash out savings and close the account
(May use a combination of these options)
Roll savings into an IRA
Advantages Drawbacks
• Maintains tax-deferred status of savings
• Continue to make contributions and save for retirement
• Combine other qualified plans or IRA savings into one account
• Oers greater control as it’s your account and you make
the decisions
• Oers broad range of investment options to fit needs as
they change over time
• Protected from bankruptcy
• May have the services of a financial professional to help with
investing and retirement planning
• Flexibility when setting up periodic or unscheduled withdrawals
• May help with planning and managing required minimum
distributions at age 72 (70½ prior to 01/01/2020)
• Investment expenses and account fees may be higher
than those of employer plans
• No fiduciary required to prudently monitor the cost
and quality of the investment options
• IRS penalty-free withdrawals generally not allowed
until age 59½
• Loans not allowed. Can only access money by taking
a taxable distribution
• Limited protection from creditors
• In-kind transfers of company stock to an IRA will result
in appreciated value being taxed as ordinary income at
withdrawal from the IRA
Retirement Savings Options
It’s important to know the types and range of investments and fees of an IRA.
Keep savings in your former employer’s plan (if allowed)
Advantages Drawbacks
Maintains tax-deferred status of savings
Keeps current investment choices
Preserves any guaranteed interest rate
Keeps ownership of company stock in the account where
it may have certain tax benefits at withdrawal
Fees in employer plan may be lower than similar
individual accounts
Plan fiduciary required to prudently monitor the cost and
quality of the investments options
Changes made to the plan by your former employer will
impact you (i.e., plan investments, fees, services, plan
providers, plan termination)
Investment choices limited to those oered through your
former employer’s retirement plan
Subjects you to limitations of the plan, including income
distribution provisions when you retire
Account may be assessed fees for plan administration
or other reasons
Continued on next page
Roll savings to your new employer’s planThis is an option if you are joining a company that oers a retirement plan.
Advantages Drawbacks
Maintains tax-deferred status of savings
Continue to make contributions and save for retirement
Combine other qualified plans or IRA savings into one account
Fees in employer plan may be lower than similar
individual accounts
Plan fiduciary required to prudently monitor the cost and
quality of the investments options
IRS penalty-free withdrawals if you’re at least 55 years old
in the year you leave your new job*
Protected from creditors and bankruptcy
Plan may provide access to planning tools, educational
resources and phone helpline
Loan provisions may allow borrowing from the rolled over money
No required minimum distribution at age 72 (70½ prior to
01/01/2020) from a current employer’s plan is required,
unless you are a 5% or more owner of the company
Changes made to the plan by your employer will impact
you (i.e., plan investments, fees, services, plan providers,
plan termination)
Investment choices limited to those the plan oers
Subjects you to limitations of the plan, including income
distribution provisions when you retire
Account may be assessed fees for plan administration
or other reasons
Access to personalized investment advice or advice that
takes into account your other assets or particular needs
may not be available through the retirement plan
Plan may oer fewer or more expensive investment options
than your former employer’s plan
May be more restrictive on withdrawals while employed
Roll-ins may not be allowed or an eligibility period may need
to be satisfied
In-kind transfers of company stock will result in appreciated
value being taxed as ordinary income at withdrawal from
the retirement plan
Check your new employer’s summary plan description to confirm plan details and requirements.
Cash out savings and close the account
Advantages Drawbacks
Immediate access to cash
May see significant tax advantage for company stock that
has substantially appreciated
If after-tax contributions were made, could take these
amounts tax-free (though you will be required to pay tax
on the earnings of these contributions)
At distribution, 20% withheld on the taxable account
balance for pre-payment of federal income taxes
State taxes and a 10% early distribution penalty may also
apply on taxable account balance
May move you to a higher tax bracket
Forfeits future tax-deferred growth potential
Not protected from creditors or bankruptcy
If this money is no longer set aside for retirement, will you have the savings you need when you want to retire or can no longer work?
*In-service withdrawals may be allowed while you are still working for
the company sponsoring the retirement plan. Check with the plan
administrator for details and requirements.
1
These considerations were prepared for pre-tax 401(k) accounts. Some but
not all of these considerations may also apply to other types of plans and/or
accounts (e.g., Roth after-tax accounts). You may wish to consult a tax advisor if
you participate in a dierent type of plan or hold a dierent type of account.
2
These descriptions are for general educational purposes and should not be
construed as advice or recommendations. This is not tax or legal advice and
you may wish to consult with your tax or legal advisors on these issues.
Insurance products and plan administrative services provided through
Principal Life Insurance Co., a member of Principal Financial Group,
Des Moines, IA 50392.
PG4810-05 | 01/2020 | © 2020 Principal Financial Services, Inc. | 1045862-012020
Keep savings in your former employer’s plan (continued)
Advantages Drawbacks
IRS penalty-free withdrawals if you’re at least 55 years old
in the year you left your job
Protected from creditors and bankruptcy
Plan may provide access to planning tools, educational
resources and phone helpline
Access to personalized investment advice or advice that takes
into account your other assets or particular needs may not be
available through the retirement plan
No new contributions allowed
Check your former employer’s summary plan description to confirm plan details and requirements.
Contract/Plan ID Number:
Location:
Principal Life Insurance Company
Des Moines, IA 50306-9394
Instructions: Complete all steps listed and sign this form to roll over funds from a previous employer’s
plan or Individual Retirement Account (IRA) into the current retirement plan with services by Principal
®
.
1. Personal information (please print with black ink)
Name Date of Birth Social Security Number
Last First MI
Mailing Address
Street Apt City State Zip Code
Date of Hire Phone Number Email Address
/
/
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/
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Rollover Form
2. Tell us about your rollover funds
Do you know if the funds are pre-tax or after-tax contributions? (check one)
Yes. Please provide more details (check all that apply).
Pre-tax. Approximate account value $ ___________________
After-tax. What kind of after-tax contributions are the funds? (check all that apply)
1.) Roth
– Roth deferral amount (excluding any earnings/losses) $ ___________________
Earnings on Roth deferral $ ___________________
Tax year of therst Roth deferral $ ___________________
Was any part of the Roth account originally a pre-tax contribution?
No
Yes, I’ve completed an in-plan Roth conversion of pre-tax contribution to a Roth account. $___________________
2.) Other after-tax contributions (not Roth)
– Other after-tax contribution amount (excluding any earning/losses) $ ___________________
No. Not sure? That’s ok. We’ll work with you to get this information from the financial institution
currently holding the funds.
The email address you provide will be used for services provided by the Principal
Financial Group®. For more information, see the privacy policy at principal.com.
Contract/Plan ID Number:
4. Plan sponsor signature
The plan sponsor is typically your employer. This signature is required to process the rollover.
Based on the information above, this rollover contribution is acceptable according to the plan provisions Principal Life Insurance
Company is directed to accept this rollover contribution and keep the appropriate records and accounts.
Plan Sponsor or Trustee Name
3. Confirm rollover
By signing this form, I agree that ...
This form is designed to be a quick way to direct the investment of eligible rollover funds. If I do not have an investment election on
file or wish to make an alternative allocation, I will select investment options by logging in to principal.com or calling 1-800-547-7754.
If I don’t make a dierent investment election prior to my rollover funds being received by Principal
®
, my funds will be invested
based on my current investment election. If I do not have a current investment election on file, my funds will be directed to the
plan’s investment default alternative(s).
I certify that this rollover contains no funds from a hardship withdrawal, no excess contribution amounts, and no funds subject
to a required minimum distribution.
I certify that no part of this rollover is part of an inherited IRA, SIMPLE IRA within 2 years of the first contribution, or Roth IRA.
I certify that, if the funds are coming from a former employer’s plan, I have verified that the plan is a plan qualified under Internal
Revenue Code 401(a), 403(b) or 457(b).
I understand that Principal will rely on the information I have provided on this form and/or information from the current financial
institution regarding the breakdown between pre-tax and after-tax contributions (including any Roth contributions).
You have options other than rolling the retirement account from your former employer’s retirement plan to your new employer’s
plan. Fees, investment options, services and plan features vary between retirement plans.
By rolling over funds to this account, I agree that I have received and reviewed information about the plan’s investment options so
that I may make an informed investment decision. Information about the plan’s investment options is available in the Investment
Option Summary included in the enrollment booklet and online at principal.com.
You must roll over qualified funds within 60 days of distribution to avoid tax penalties. If it has been more than 60 days, I agree that
I am self-certifying this rollover because I am eligible for a waiver of that period per the guidelines provided by the IRS, and will be
submitting a copy of my self-certification to Principal.
My Signature Date
X
*You may roll over a distribution from a traditional IRA to a plan qualified under the Internal Revenue Code §401(a), 403(b), an annuity, or a Governmental
457(b) plan to the extent that the distribution would be taxable if not rolled over. After-tax contributions in an IRA (including non-deductible
contributions to a traditional IRA) may not be rolled over to one of these plans. Amounts rolled into a Governmental 457(b) plan other than another
Governmental 457(b) plan are subject to an early withdrawal tax.
You may roll over a Roth account only into a plan that allows Roth contributions. Please check your Summary Plan Description or plan document before
rolling over Roth accounts to make sure Roth contributions are available.
Rollover Form
/
/
Plan Sponsor or Trustee Signature Date
X
/
/
Contract/Plan ID Number:
5. Request the funds and contribution details
You need to request the funds from the current financial institution holding them. You’ll need to provide them some instructions
regarding how they provide the funds to us and the breakdown of how they should be directed based on your pre-tax and after-
tax contributions (see below). We’ll rely on this information and/or the information you’ve provided on this form when directing
the funds here at Principal.
Or we can help you do it. If youd like some help contacting the current financial institution, call us at 1-800-547-7754
for more information.
Checks must be made payable to:
Principal Life Insurance Company
FBO <Your Name>
Contract/plan ID number <9999999>
Breakdown between pre-tax
and after-tax contributions
Checks must be mailed to:
Principal Financial Group
P.O. Box 9394
Des Moines, IA 50306-9394
Wire transfer instructions:
ABA number: 121000248
Account number: 0000901239
FBO <Your Name>
Contract/plan ID number <999999>
Breakdown between pre-tax
and after-tax contributions
Rollover Form
6. Send completed form and rollover funds
If we don’t receive this form within 15 business days of receiving the rollover funds, the rollover funds will be returned.
Check enclosed Prior financial institution will send check/wire funds
Mailing address for completed form and check:
Principal Financial Group
P.O. Box 9394
Des Moines, IA 50306-9394
Fax this completed and signed form to the number
below so we know your rollover funds are on the way:
1-866-704-3481
For residents of Florida: Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application
containing any false, incomplete, or misleading information is guilty of a felony of the third degree.
Investing involves risk, including possible loss of principal.
If funds are rolled into the plan prior to the participant attaining eligibility, this form is only valid if the participant receives the plan’s investment
option summary and 404 notice prior to executing.
Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group
®
,
Des Moines, IA 50392.
© 2020 Principal Financial Services, Inc.
PG4576-12 | 1299530-082020 | 08/2020