When is Principal Notified of Terminations?

Because many employees want to contribute to 403(b)(9) up through their last paycheck (which is typically received a month or two (depending on backpay) after their actual termination date), Reliant generally notifies Principal of your exit after your final paycheck has been processed and any contributions from that paycheck have been submitted to Principal. This generally happens within 5-10 business days after the final paycheck. The 60-day window to decide what to do with your 403(b)(9) funds begins from the date that we notify Principal of your termination. This process of waiting to notify Principal is designed to help prevent employees from having to take action to rollover funds multiple times, as we're waiting to start that 60-day period after all funds that will be contributed and are in the 403(b)(9) account. If you'd like to have Reliant notify Principal of your termination as soon as your termination date arrives (which would mean you want to stop contributing to 403B prior to your final paycheck), please contact payroll@reliant.org.  However, please note that Principal can not be notified of the termination prior to the Reliant termination date. We are not able to enter any date on the Principal site other than the actual Reliant termination date and we are not able to enter it as a future date. 

What Percent Vested will I be when I Exit?

When you exit employment with Reliant, your 403(b)(9) will be 100% vested, which means you get to keep all of the money you invested, plus 100% of the employer match. 

403(b)(9) Balance Options for you to Consider:

Roll It Over

• 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 1-800-547-7754. 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.

Stay with Principal - IRA

(move the funds into an IRA - Individual 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)
• Options to add money (up to annual IRA limits) 
• Continued service from Principal Financial Group
• Some fees may apply

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

Cash Out

• 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 complicated.