Principal Eases Small Biz K Plan Product Sales

June 10, 2004 ( - Financial advisors and TPAs may find it easier to sell The Principal Financial Group's small-business K plan with the unveiling of a new client presentation product.

A Principal news release said the new online offering at the company’s secured advisor Web site, electronic Financial Professional, features everything advisors, brokers and other TPAs need to generate a customized client presentation about Principal’s Principal Security Builder Retirement Program. The product was introduced in 2002 for advisors and the small business market.

According to the news release, after entering a minimal amount of client data in the online application, advisors are able to print the fee page, current investment options and other key information to prepare a client proposal.

The K plan product carries no additional participant, 5500, distribution or document costs but has a $1,500 annual fee (Principal will waive the annual fee for plans working with a TPA).

“Education is a critically important part of helping small business owners select a retirement plan. Far too often they aren’t aware of the tax incentives and are concerned about fees and expenses normally associated with 401(k)s,” Laurie Shultz, vice president—Retirement and Investor Services, The Principal, said in the announcement. “That’s why Principal Security Builder Retirement Program is available through advisors, who can educate these business owners on the benefits of this innovative product.”

The announcement said the Principal Security Builder Retirement Program features:

  • advanced technology, online administrative support and recordkeeping services including daily valuation, electronic data reporting, benefit distributions and executive summaries
  • a multimanager investment approach with 18 investment managers and more than 60 investment options
  • a participant service package with electronic enrollment
  • Principal’s Web site and telephone voice response for account information, fund transfer, interactive educational and asset allocation tools; Morningstar investment information; benefit plan reports; on-site investment education and retirement planning seminars; toll-free counseling, financial planning and rollover assistance.

Through The Principal or a local TPA, Principal Security Builder Retirement Program also provides: employer compliance tools including top-heavy determination, minimum contribution calculations, 415 limit calculations, nondiscrimination tests, Form 5500 series annual reports and related schedules, employee booklets, summary of material modifications and summary annual reports .