Help with annuities

No. 

It depends.

If you have a single-premium annuity, you cannot add money to the annuity after the contract is issued.

Other annuities do allow additional contributions. Annual contribution limits on these annuities depends on whether the annuity contract is created with pre-tax or after-tax money.

• If you’ve already paid taxes on the funds you’re using to invest in your annuity, you do not have any limits on how much you can contribute. Your financial professional or tax advisor can help walk you through the options.
• If you haven’t paid taxes on the funds you’re contributing to your annuity, there are IRS limits to your contributions, which often change each year. Check with your financial professional for details.

Annuitization is simply when the money in your annuity is converted into retirement income payments back to you.

Very often, yes; they may be based on the type of annuity or the rider (i.e., add-on) you purchase. (All Principal^® annuities have a built-in death benefit.) Talk to your financial professional for options.

Not always, but some annuities do have age limit restrictions.

It depends on the funds you used to set up your annuity.

• Yes, you will pay income taxes on all withdrawals (including any gains) from your annuity if you used pre-tax funds to purchase the contract. (You may see these referred to as a qualified annuity.)
• No, you will not pay income taxes on withdraws of contributions if you funded the annuity with post-tax dollars, or money you already paid income tax on. In this case, only the growth in your annuity will be taxed when you withdraw it. (These are sometimes called nonqualified annuities.)

You declare annuity withdrawals on your income tax return. You’ll receive a 1099-R form that lists annuity payments; you or your tax advisor can use that form to help in preparing your return.

Some annuities do have a required minimum distribution, or RMD. In general, people with qualified annuities (created with pre-tax dollars) must take an RMD.

Typically you may withdraw funds from your annuity at age 59½ without an early withdrawal fee. Annuities also often require a certain number of years to pass before you’re able to withdraw funds. If you need funds from your annuity before that age or time has passed, you may have to pay a surrender charge as well as an IRS 10% early withdrawal penalty. Ask your financial professional for details.

If you’ve elected to receive your tax forms electronically from Principal, you can download your 1099-R form in early February. Here’s how it works: You must have a Principal.com account. Start by logging in; then click on “My profile” on the top right. Select “Manage delivery preferences,” and check the box for “Tax documents.” Click the “View terms (PDF)” button, select email notification, and choose the email to send notifications. Your e-documents should be available the next day, and you can access them at any time.

Paper 1099-R forms are mailed after January 31.

Principal offers several different types of annuities, each designed to fit different goals and life stages. For more details, contact your financial professional.

You may either contact your financial professional or Principal (see contact information below).

Start by logging in to your Principal account. After you have logged in, in the top right corner, click the downward arrow next to your name. Navigate to “My profile” and use the links on that page to update your address, email, and phone number. Once you’re logged in, you can also see scheduled transfers and rebalance your account, too.

To view your current account beneficiaries, log in and select the My beneficiary tab from your account dashboard. A list of your current accounts will then be displayed. Click on the account to view current beneficiary elections.

Remember, beneficiaries are account-specific designations. You’ll want to review your elections for all accounts and make sure they match your wishes.

If you prefer, you can use the Beneficiary Change Form (PDF).

Once you have the name of your Principal annuity, you can view the performance of its investments. If you have a Principal variable or registered index-linked annuity, you receive quarterly and annual statements. Existing fixed and income accounts receive an annual statement.

This option depends on your annuity. To add money to your Principal annuity, please call us at +1-800-852-4450, Monday-Friday, 7 a.m.-6 p.m. CT, or contact your financial professional.

We’ll mail you a letter in January with information about the RMD for your Principal annuity. To make a one-time withdrawal of your RMD or inquire how to set up automatic withdrawals, call +1-800-852-4450, Monday-Friday, 7 a.m.-6 p.m. CT.

To withdraw money from your account, call us at +1-800-852-4450, Monday-Friday, 7 a.m.-6 p.m. CT.

Please call +1-800-852-4450 Monday-Friday, 7 a.m.-9 p.m. CT.

Regular mail:
Principal Financial Group
RIS Annuity Services M-001-E10
PO Box 9382
Des Moines, IA 50306-9382

Overnight mail:
Principal Financial Group
RIS Annuity Services M-001-E10
711 High Street
Des Moines, IA 50392-1770