Retirement, Investments, & Insurance for Individuals Invest & Retire Individual Retirement Accounts (IRAs) Open an IRA

Open an IRA

Open an IRA with Principal®

Choose how you want to manage your investments.

Control

A curser selecting a circle in the upper left corner in a group of four circles.

You select and manage your investments over time in a Principal® IRA

Call to open

800-247-8000, ext. 2251

Control + Simplicity

A money symbol with two arrows in a circle around it.

Our technology platform continually manages your investments in a Principal® SimpleInvest IRA

Call to open

866-412-0770

How to open an IRA (in 4 steps)

Step 1: Determine which type of IRA you'd like.

A traditional IRA lets you deduct savings contributions from your taxes, which may lower your taxable income for the year - but you pay taxes on the money when you withdraw it in retirement.

A Roth IRA uses after-tax money, you can withdraw your contributions at any time without paying taxes or penalties.

With a Principal rollover IRA, we can help you determine which account type is right for your money.
Step 2: Choose an IRA provider.

A Principal® IRA keeps you in control with resources and information to research and make informed decisions about your investments.

A Principal® SimpleInvest IRA uses inputs, like your retirement goals and tolerance for risk, to recommend a diversified investment model that fits your needs. Our technology automatically rebalances your portfolio to keep you on track. 
Step 3: Open and fund your IRA.

There are two ways to do so:

1. Roll over an existing plan.

"Roll over" means to move money that's already in one kind of retirement account to another of a similar kind. So if you have your money in a 401(k) or 403(b) or another IRA, you can open a traditional IRA with Principal by moving that money directly, with no tax liability. Same if your money is in a Roth 401(k) or Roth IRA and you move to a Principal Roth IRA.

It gets a little more complicated if you want to change from a pre-tax plan (traditional) to a post-tax plan (Roth), but we can help make the process easier. You may also want to consult with a tax professional to help you understand all the tax implications. 

2. Make a direct contribution

A direct contribution is using money that's in your savings, checking, or other bank account to fund your IRA.

At Principal, you can do this with a Principal® SimpleInvest IRA, or by calling us at 866-412-0770.

We do not currently support opening a Principal® IRA with a direct contribution.

Step 4: Pick your investments.

With a Principal® IRA, you'll choose from a range of investment options such as mutual funds, stocks, bonds, and exchange-traded funds.

With a Principal® SimpleInvest IRA, we do the heavy lifting by recommending and managing a diversified investment mix of mutual funds and ETFs. All you need to do is answer a few basic questions about your goals and risk tolerance.

Why work with Principal?

Principal has been helping people make smart money decisions for more than 80 years.

We work to understand who you are and what matters most to you, so we can provide straightforward options for your financial goals.

You can feel confident about working with Principal, the company with more than 62 million customers. We want to be your source for help navigating your personal financial decisions.

Ready to get started?

Control

A curser selecting a circle in the upper left corner in a group of four circles.

You select and manage your investments over time in a Principal® IRA

Call to open

800-247-8000, ext. 2251

Monday - Friday, 
7 a.m. to 9 p.m. CT

Control + Simplicity

A money symbol with two arrows in a circle around it.

Our technology platform continually manages your investments in a Principal® Simpleinvest IRA

Call to open

866-412-0770

Monday - Friday, 
8 a.m. to 5 p.m. CT

What are the fees?

We work hard to make our fees transparent and we're always available to answer questions as you have them. 

Fees will depend on which IRA you choose. To learn more about our IRA options, check out Principal® IRA or Principal® SimpleInvest IRA.

Footnotes

Your account must be open for 5 years and you must be over age 59 ½ to be eligible for qualified tax-free withdrawals of earnings. Providing retirement plan services since 1941. As of 12/31/2022
Investment and Insurance products are: 
• Not Insured by the FDIC or Any Federal Government Agency 
• Not a Deposit or Other Obligation of, or Guaranteed by, Principal Bank or Any Bank Affiliate 
• Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested 

This document is intended to be educational in nature and is not intended to be taken as a recommendation. 
 
When deciding between an employer-sponsored plan and an IRA you should consider the differences in investment options and risks, fees and expenses, tax implications, services and penalty-free withdrawals for your various options. The organization’s retirement plan investment options may have investment expenses lower than similar investment options offered outside the plan. There may be other factors to consider due to your specific needs and situation. You may wish to consult your tax advisor or legal counsel. 

Financial professionals provide education with respect to the options you have with your retirement plan assets, and are able to sell Principal® products. They do not represent, offer, or compare products and services of other financial services organizations. 

Principal® SimpleInvest is a discretionary investment advisory program that offers diversified investment portfolios for a fee. Principal® SimpleInvest is sponsored and managed by Principal Advised Services, LLC, which consults with Principal Global Investors, LLC in the creation of the portfolios and the selection of the underlying portfolio investments. Principal Global Investors, LLC also provides trading and execution services. Principal Advised Services, LLC and Principal Global Investors, LLC are members of the Principal Financial Group®. Brokerage and custodial services provided by Apex Clearing Corporation, member FINRA, NYSE and SIPC. Apex Clearing Corporation is not affiliated with any member of the Principal Financial Group®. Principal® SimpleInvest portfolios are comprised primarily of Principal® products, including affiliated mutual funds and ETFs. 

Please refer to the Form ADV Wrap Fee Brochure, Form ADV Advice Brochure and Form CRS for Principal Advised Services, LLC, the Miscellaneous Fee Schedule for Apex Clearing Corporation, and other applicable disclosures and agreements for important information about Principal® SimpleInvest and its services, fees and related conflicts of interest. All investments have inherent risks. Investing in Principal® SimpleInvest portfolios does not guarantee profit or protect against loss.