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Note
title60 Days to Rollover

Once Principal Financial Group has been notified of your exiting employment with Reliant, you will generally have a 60-day window to select what you would like Principal to do with your 403(b)(9) balance. 

The Principal Client Contact Center 1-800-547-7754 can advise you of your options. They are available Monday-Friday from 7 A.M. Eastern time to 9 P.M. Eastern time. 

You have three options: Roll it Over, Stay with Principal, Cash it out.   

If you do not make a selection in that 60-day window, Principal will do one of two things:

If the balance in the 403(b)(9) account is greater than $5,000, Principal will

automatically roll your 403(b)(9) account into an IRA account with

Principal.If the balance in the 403(b)(9) account is less than $5,000, Principal will generally cut you a distribution check for the balance in the account, minus a reserve of taxes.
In this scenario you will receive a 1099 from

Principal

at the end of the year and will have to report the distribution on your taxes. This option comes with a tax penalty for early withdrawal of retirement funds, so you do NOT have to cash this check

.

 *see below for details.

When is Principal Notified of Terminations?

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Stay with Principal - PRA

(leave the balance in the account, if no rollover action is taken funds in excess of $5,000 automatically roll into a PRA - Personal Retirement Account)

  • No tax consequences (the money stays in an approved retirement vehicle, so you won't incur early withdrawal penalties or be issued a 1099)
  •  No option to add money to the account unless it's rolled into an IRA (see above)
  • Continued service from Principal Financial Group
  • Some fees may apply

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  • You will pay a tax penalty for early withdrawal if you are not at least age 59 1/2
  • Retirement savings for the future are forfeited when you cash out the 403(b)(9)
  • If Principal cuts you a check to cash out because  the account balance was below the $5,000 limit, you do NOT have to cash the check.  If you want to roll the funds into another retirement account, you still have that option.  Call the Principal Client Contact Center at 1-800-547-7754. You can destroy the check and they can process a rollover for you. But, act fast! You don't want the end of the year to hit and for your taxes to get complicatedAdditional restrictions apply. You should discuss this option directly with Principal. 


Tip
titlePrincipal Client Contact Center

The Principal Client Contact Center, 1-800-547-7754, can advise you of your options. They are available Monday-Friday from 7 A.M. Eastern time to 9 P.M. Eastern time. You can also review the "Distributions" tab of your online account at Principal.com. The Distributions tab will be available as soon as Reliant notifies Principal of your termination. 

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