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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 401(k) balance. 

The Principal Client Contact Center 1-800-547-7754 can advise you of your options.  They are available Monday-Friday from 7:00am Eastern time to 9:00pm Eastern time. 

You have 3 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 2 things:

  • If the balance in the 401K account is greater than $2$5,000 - Principal will automatically roll your 401K account into an IRA account with Principal 
  • If the balance in the 401K account is less than $2$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.

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  • A Direct Rollover into another Retirement Account has no tax consequences
  • Rollovers can be processed online through the "Distributions" tab of your account or by calling Principal's Client Contact Center 1-800-547-7754can mail them to . Principal can mail rollover forms to you  (email or fax may also be an option)
  • All your money stays in one place, so it's easier to track as well as to know how much you have set aside for retirement

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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 401(k)
  • If Principal cuts you a check to cash out because  the account balance was below the $2$5,000 limit - you do NOT have to cash the check.  If you want to roll the funds into another retirement acount you still have that option.  Call the Principal Client Contact Center 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 complicated. 

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