Principal Offering New 401(k) Product to Owner-Only Businesses

The program is the enhanced version of the company’s retirement plan that is meant for owner-only businesses. Designed to be sold through financial professionals, the program attempts to offer sole proprietors investment selection and review programs that mimic plans for larger companies, according to a press release from the company.

Through the Individual 401(k), one-person businesses can contribute $41,000 per year, or $44,000 if the benefactor is over 50. Features of the program include investment options, recordkeeping and compliance services. It also includes the Principal Due Diligence Program and the Principal Blueprint, which monitor investment managers. The Principal asserts that the fee structure of the program also compares favorably to larger plans, with Form 5500 preparation and 402(g) and 415 testing included.

The Principal Financial Group ( www.principal.com ) provides retirement and investment services, and has over $150 billion in assets under management.