Principal Financial Group Enhances Individual 401k Product
New retirement program offers advantages of traditional 401k plans to one-person businesses
DES MOINES, IA, November 29, 2004 -- The Principal Financial Group
®, the nation's 401k leader and total retirement solutions innovator, announces the Principal Security Builder Retirement Program(SM) Individual 401k -- an enhanced version of the popular retirement plan created specifically for owner-only businesses.
Designed to be sold through financial professionals, this latest option from The Principal® provides the same significant tax savings and higher contribution limits of a stand-alone solo 401k plan but goes a step further by offering sole-proprietors the extra advantages of a big-company, traditional 401k plan, including a unique investment selection and review program.
"By making the Individual 401k plan available inside the Principal Security Builder Retirement Program, financial professionals can grow their retirement business by offering their clients an enhanced version of this very popular retirement savings option at a very affordable price," said Tim Minard, vice-president and national sales director at The Principal. "The Principal Security Builder platform includes all the features normally reserved for larger 401k plans and allows the plan to grow with the business if the owner adds employees."
The Individual 401k plan is popular because one-person business owners can dramatically increase their retirement plan contributions, contributing up to $41,000 a year or up to $44,000 if they are 50 or older. Owners can still take advantage of the tax breaks for 2004 if they sign up by the end of the calendar year.
The additional "large plan" advantages of the Principal Security Builder Retirement Program Individual 401k include:
- A "one-stop shop" with investment options, recordkeeping and compliance services under one roof.
- Comprehensive start-up and maintenance fees which cover services and features that may cost extra from other service providers, including compliance needs such as Form 5500 preparation and 402(g) and 415 testing; recordkeeping on contributions and distributions; retirement plan statements; and other services such as online plan information and a toll free access to a team of experienced retirement plan experts.
- The Principal Due Diligence Program(SM) and Principal Blueprint®, a one of a kind investment process which selects and monitors each foundation option investment manager to help ensure investments are appropriate for retirement planning.
- A simple transition to a traditional 401k plan serviced by an experienced, industry leader if an owner adds employees.
"With over 60 years experience providing total retirement solutions, The Principal is positioned to provide a consolidated, seamless retirement solution whether businesses have one employee or thousands of employees," summarizes Minard.
About The Principal
The Principal Financial Group® (The Principal ®) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $156.0 billion in assets under management and serves some 14.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
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