Author Topic: Principal.com 401 & 457  (Read 2374 times)

Scommm

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Principal.com 401 & 457
« on: September 25, 2015, 09:10:29 PM »
So apparently at work we have access to Principal and can contribute both full amounts to a 457 and 401 account if we choose.  However it can only come from payroll, and there is no match. 

They offer no ETF options in either scenario.

They claim all "fees" are paid by the employer because it's a "group" account.

What am I missing or do I need to ask more about / look into?  I can't fully fund both of them but one seems doable, in that case any thoughts about the 457 vs 401 other than the one benefit I know about, which is I know I can take 457 monies out penalty free before 59.5 and that seems to be a benefit over a 401.

seattlecyclone

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Re: Principal.com 401 & 457
« Reply #1 on: September 25, 2015, 10:50:28 PM »
Are there any differences in the funds offered between the two plans? That could be an important consideration. All else being equal, pick the 457 plan.

Scommm

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Re: Principal.com 401 & 457
« Reply #2 on: September 26, 2015, 04:18:17 AM »
Nope, same funds.

Scommm

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Re: Principal.com 401 & 457
« Reply #3 on: September 27, 2015, 03:18:12 PM »
Any experience or thoughts on Principal vs. Vanguard vs. XXX?  I know Vanguard seems to be preferred, however on a before tax basis I only have access to Principal.

seattlecyclone

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Re: Principal.com 401 & 457
« Reply #4 on: September 27, 2015, 03:30:20 PM »
Contribute to your 457. If you max that out and still have money to save in an IRA or taxable account, consider opening accounts at Vanguard.

justchristine

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Re: Principal.com 401 & 457
« Reply #5 on: September 28, 2015, 05:03:03 AM »
Any experience or thoughts on Principal vs. Vanguard vs. XXX?  I know Vanguard seems to be preferred, however on a before tax basis I only have access to Principal.
My current 401k is with Principal and I have a rollover IRA and taxable account with Vanguard.  I would personally prefer to have everything with Vanguard but you work with what you are given.  My Principal 401k doesn't have the greatest choices but there are a few lower cost index funds.  So I just invest in those and don't worry about it.  The pre tax savings is worth the higher expense ratios. But you can be sure that as soon as I'm no longer employed with current employer, I'll be rolling over to my vanguard account for the lower expenses, better website, and customer service.

Scommm

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Re: Principal.com 401 & 457
« Reply #6 on: September 28, 2015, 10:14:59 AM »
Christine, we have only a couple of options. One is to "let them do everything" and the other lets you basically select a few choices, still not customizable at all. I was told the "let us do it" option was retire date fund targeted. Sound familiar?


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justchristine

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Re: Principal.com 401 & 457
« Reply #7 on: September 28, 2015, 10:48:01 AM »
No, I have probably a couple dozen different funds to choose from.  There are several target date funds which seem pretty decent.  I actually have my bf investing in the 2040 one.  If you want some help deciphering your options, you could post a list of them.  If login to your principal account you should be able to take a screenshot of the available options in your plan.