Inherited Principal 401(k): Claim Steps & Rules
Principal's death-claim forms are plan-specific, so the first call is about getting the RIGHT package — and about not electing a payout option you can't take back.
Below: what to gather before calling, the titling rules for the inherited IRA, and how the 10-year rule and annual RMDs interact for deaths after 2019.
The one mistake that cannot be undone
A non-spouse beneficiary has NO 60-day rollover. If the plan cuts a check in your name and you deposit it, the entire account becomes taxable income that year — there is no Rev. Proc. self-certification, no IRS letter, no fix. The ONLY safe move is a direct trustee-to-trustee transfer into a properly titled inherited IRA. If anyone offers to "just send you a check," stop the call and get help first.
Full rules: what non-spouse beneficiaries can and cannot do →
What to expect from Principal
Beneficiary services: 1-800-547-7754 · Mon-Fri 7am-9pm CT
Ordinary transfer processing: 10-14 business days; Medallion stamp may be required — death claims add a document-review stage on top, so budget extra weeks beyond that.
Online: https://www.principal.com
Principal quirks that also bite beneficiary transfers:
- Principal specializes in small-business 401(k) plans, so rollover forms are highly plan-specific — you can't always download a generic form from the website. Call your former employer's HR to ask which form their plan uses.
- Many Principal plans require a Medallion Signature Guarantee for rollovers over $50K (NOT a notary). Get this in person at a bank you have a relationship with before you start — finding a Medallion provider can take a couple days.
- Principal will sometimes ask the destination custodian to provide a 'Letter of Acceptance' on letterhead. Request this from the destination upfront (they all have a standard form) — saves a callback.
How to claim, step by step
- 1
Order 3–5 certified copies of the death certificate — Principal and every other institution will each want one.
- 2
Call Principal's beneficiary-services line and ask for the "death claim" or "beneficiary distribution" package for the specific plan. Have the deceased's SSN, date of death, and your ID ready.
- 3
Ask Principal to CONFIRM you are the beneficiary of record before discussing options — plan documents control, not the will.
- 4
Before signing anything, decide the destination: a properly titled inherited IRA (e.g., “Jane Doe, deceased, FBO John Doe, beneficiary”). Titling errors are treated as full distributions.
- 5
Insist on a DIRECT trustee-to-trustee transfer into the inherited IRA. Decline any option that mails you a check payable to you personally.
- 6
Get the transfer confirmation in writing, then calendar your RMD obligations for the current year — the deceased's year-of-death RMD may still be due.
Your distribution clock (2026 rules)
- Most non-spouse beneficiaries must empty the account within 10 years of the death — and if the owner had already started RMDs, annual withdrawals are required in years 1–9 (enforced since 2025, with a 25% excise tax behind them).
- The deceased's year-of-death RMD may still be due on YOUR calendar while the claim processes.
Full 10-year-rule breakdown with a worked year-by-year example →
Common questions
Are Principal's death-claim forms really plan-specific?
Yes — Principal's beneficiary paperwork varies by employer plan, and a generic downloaded form is a common reason claims bounce back as NIGO ("not in good order"). Give the rep the plan or contract number from the deceased's statement and have them send the package for THAT plan.
Will Principal require notarization or a Medallion stamp?
Expect at least one of the two, especially for money leaving Principal — its ordinary rollover forms commonly require a Medallion signature guarantee, and beneficiary claims get more scrutiny, not less. Banks and credit unions where you already hold accounts are the usual free source for a stamp.
Questions about your situation?
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Educational information, current to the July 2024 final regulations as enforced in 2026 — not tax, legal, or financial advice. Beneficiary elections are frequently irreversible; verify with your own CPA or estate attorney before acting. Estate deadlines (including the 9-month federal estate-tax election window) exist — consult the estate's attorney.