What the Principal Financial Group Is All About

Principal Financial Group, Inc. is a financial firm that offers financial services and products to individuals, businesses, and institutional clients. The company specializes in retirement insurance, solutions, and investment products through its group of financial services companies and national network of financial professionals. 

The firm operates in the following segments: Retirement and Income Solutions, Principal Global Investors, Principal International, U.S. Insurance Solutions, and Corporate. 

The Retirements and Income Solutions segment aids in providing retirement and related financial products and services, especially for businesses, employees, and other individuals. The Principal Global Investors segment aids in providing asset management services to asset insurance operations, accumulation businesses, corporate segments, and third-party clients, as it also refers to mutual fund businesses.

The Principal International segment provides pension accumulation products and services, asset management, mutual funds, income annuities, and life insurance products. The U.S. Insurance Solutions segment operates through two divisions.

The speciality benefits insurance division consists of group dental and vision insurance, individual and group disability insurance, group life insurance, and non-medical fee-for-service claims administration. The corporate segment manages the assets representing capital that have not been allocated to any other segment.

The company was founded by Edward A. Temple in 1879 and is headquartered in Des Moines, IA.

Frequently Asked Questions (FAQs)

How to Cash Out My Principal 401K

To cash out your principal 401k, you’ll have to wait until you are at least 59.5 years old. When you reach the age of 59.5 (and in some cases, 55), you will be eligible to begin withdrawing money from your 401(k) without having to pay a penalty tax. You'll simply need to contact your plan administrator or log into your account online and request a withdrawal.

How Do I Cash Out My 401K Principal

To cash out all or part of a 401(k) fund without being penalized, a person must reach the age of 59 1/2, die, become disabled, or, under some plans "financial hardship." Penalty-free withdrawals are also available when an employer discontinues the 401(k) plan without establishing a new defined contribution plan. These distributions are taxable as income and may be subject to an additional tax on early distributions of elective contributions.

How to Withdraw From Principal 401K

This provision allows participants to withdraw eligible amounts from their 401(k) account to meet the needs of a financial hardship. Participants must pay taxes on the amount they withdraw, plus a 10% penalty if they are under age 59 1⁄2. Additional requirements may apply based on the provisions of the plan.

How to Withdraw Money From 401K Principal

By age 59.5 (and in some cases, age 55), you will be eligible to begin withdrawing money from your 401(k) without having to pay a penalty tax. You'll simply need to contact your plan administrator or log into your account online and request a withdrawal.

How to Withdraw Money From Principal 401K

To withdraw money from your principal 401k, make sure you know what will qualify under your specific plan. Some providers do not allow hardship withdrawals at all. Hardship withdrawals mean you're able to take money from your 401(k) before age 59½, but most of the time you will still be hit with the penalty.