The 401(k) plans offered by the Principal Financial Group include employer-sponsored retirement packages, loans, insurance and investment management. The employee contributions to retirement plans are made on a pre-tax basis, while employer contributions are often tax deductible, notes Fortune.com.
Long-term savings growth opportunities across a variety of investment options and reduced tax liability are the typical advantages of enrolling for a 401(k) plan from the Principal Financial Group. Savings are made effortless through automatic payroll and matched employer deductions, as stated on Principal.com. A user can also roll funds directly to an individual retirement account.
New hires are automatically enrolled in 401(k) plans, allowing them to opt out later if they choose not to participate. The employer contributions have also been matched as closely as possible to employee contributions. The company does this in the hope that more employees will participate and start saving for retirement at an earlier age.
For members who wish to take up loans from the plan, one may be allowed to borrow up to 50 percent of the vested account value. The repayment period is five years. If one decides to leave the job, the loan may have to be repaid immediately as per the 401(k) loan terms.