NU Online News Service, Feb. 18, 2005, 4:45 p.m. EST
A federal savings bank owned by a Des Moines, Iowa, insurer has introduced a program that can help employers clean up their retirement plans.[@@]
The bank, Principal Bank, a unit of Principal Financial Group Inc., is offering individual retirement accounts designed for workers who leave employers without telling employers what to do about small 401(k) plan balances.
The Economic Growth and Tax Relief Reconciliation Act of 2001 included a provision authorizing employers to roll plan balances into IRAs. The provision affects plans with balances of $1,000 to $5,000./