Principal Trust is one of the largest non-depository trust company in the United States. The company is one of the leading providers of trust and administrative solutions for both employee benefit plans and individual accounts. Principal Trust services more than 250,000 customers, managing over $150 billion in assets. It offers a wide range of services and products like Individual 401K, personal trusts, profit sharing accounts, health savings accounts and more.
The Principal Individual 401K is one of the most in demand products of Principal Trust. It is a self directed investment account where you can make up to $55000 in contributions. Plus, you can also take loans against your 401K.
The Individual 401(k) is aimed at owner-only businesses who are looking to save more for retirement than previously possible. With this, they can be sure that they are saving more when compared against a traditional small business retirement plan. With the Individual 401K, a sole proprietor or partnership with earned income of less than $220,000 can maximize their contributions. Plus, individuals with income greater than $220,000 have the freedom to make a maximum contribution of $50,000 without using any salary deferral feature.
When compared to other retirement plans, the Individual 401(k) is not limited to investing in mutual funds alone. Since the product is completely self directed, the investor is free to choose from any investment opportunity that is available in his brokerage account: stocks, bonds, or mutual funds.
If you are interested in opening an Individual 401K with Principal, then you need to first download the company’s IRS approved plan document through this link. This will provide you with a step by step instruction on how to filling out the application. After this, a brokerage account can be set up with an investment firm of your choice.
Principal offers you an IRS approved prototype document, complete trustee services and an easy to complete adoption agreement. The company will also keep a record of all the contributions, distributions and loan payments according to the plan. Principal also offers an annual compliance service which includes IRS Form 5500-EZ preparation, testing of 402(g) deferrals and 415 contribution limits, IRS Form 1099-R for distributions, Required Minimum Distribution (RMD) and more.
Who Should Use Principal 401K
The Principal 401(k) plan is aimed specifically at owner-only businesses and owner spouses. If you are a business owner planning to save more money for your retirement than the traditional investment plans, then the Principal 401K is targeted at you. However, you cannot establish an Individual 401K if your business has employees. The only exception other than the owner would be his spouse, partner and the partner’s spouse.
If you have any further questions, you can contact customer Support at 1-800-209-9010, Monday thru Friday 8AM. to 5:30PM ET. You can also visit their website at www.principaltrust.com for more details.