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Your retirees’ experience

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Topics of interest

Form 1099-R tax forms 2021 and 2022

Principal® Custody Solutions Engagement Center

Website experience

Retiree communications

Wells Fargo IRT will send a communication to your retirees in early Feb. 2022, introducing Principal® Custody Solutions and the retirement account move. Details that will be included are:
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Check or ACH deposit payment delivery will remain the same.

  • Checks will be mailed four mail days prior to the payment date. (It’s been changed from three to four days due to USPS office delivery standards.) Beginning in April 2022, payments will be issued from Principal Bank.

  • Current ACH direction and permission to access the account will transfer to Principal Trust Company.

  • Payment amounts and withholding will remain the same.

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Service and service center phone numbers will remain the same.

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If applicable, online services and access will change to Principal® Custody Solutions after migration.

Notification of deposit and statements

Each retiree will continue to receive a notification of deposit based on your current direction. Although a notification of deposit can be mailed with each payment, many clients chose to send one only when there is a financial change and with the final payment of the year. The transition to Principal® Custody Solutions won’t produce a notification of deposit.

 

Payment statements will contain the same information that is provided today in the Principal® Custody Solutions brand.

Form 1099-R for 2021 and 2022

Tax forms will be issued at year end.

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Retirees will receive one Form 1099-R tax form from Wells Fargo IRT in January 2022, for payments issued from Jan. 1, 2021, through Dec. 31, 2021.

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Retirees will receive one Form 1099-R tax form from Principal Bank in January 2023, for payments issued Jan. 1, 2022, through Dec.31, 2022.

You and your third-party administrator will have access to tax forms for all open tax years through the Principal® Custody Solutions web experience. Your Principal® Custody Solutions client service specialist can assist with any concerns relating to tax forms and reporting for both Wells Fargo IRT and Principal® Custody Solutions, including reprinting

Principal® Custody Solutions Engagement Center

To ensure we’re available to help, the Principal® Custody Solutions Engagement Center is available Monday through Friday from 7 a.m. to 5 p.m. CT, except major U.S. holidays, by calling 877-877-1207, the same number used today at Wells Fargo IRT.

Services include:

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Retiree inquiries

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Address, direct deposit, and tax withholding changes

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Duplicate tax form requests

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Stop or reissue of payments

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Notification of death

If you currently use your own call center or a third party call center, nothing changes. Retirees will continue to access the call center as they do today.

Website experience

Following your organization’s migration, you can choose to offer your retirees two levels of access to the Principal® Custody Solutions website experience:
INQUIRY ONLY

Provides the retiree with online access to current and historical benefit payment information including delivery instructions, direct deposit information, and tax withholding elections along with access to tax form images and payment images for viewing and printing.

INQUIRY AND UPDATE

In addition to the inquiry functionality listed above, the update functionality will allow the retiree to update their address, direct deposit, and tax withholding information

You’ll need to authorize Principal® Custody Solutions to provide this service to your benefit retirees. Authorization agreements will be available post-migration through your relationship manager.

Some items mentioned within this guide may not be applicable to your organization’s trust and custody account(s). We realize you may have questions specific to your relationship that are not covered in this migration guide. Your relationship manager is ready to assist you with those questions.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other professionals on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

 

Information provided is solely for illustrative purposes only and the actual terms of the services are governed by the organization’s applicable service agreement(s).

 

Principal Financial Group closed the acquisition of certain assets of the Wells Fargo Institutional Retirement and Trust business (IRT) on July 1, 2019. During the transition period, Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company, will continue to operate and service the IRT business for the benefit of Principal®, including providing recordkeeping, trustee, and/or custody services.

 

Wells Fargo has not reviewed the content of the attached material and makes no judgment of its accuracy.

 

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

 

1859445-102021 | 02/2022

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Principal Global Advisors is a specialized investment management group within Principal Global Investors. Principal Global Investors leads global asset management at Principal®.

 

Custody and trust services are provided by Principal Bank®, Member FDIC, and/or Principal Trust Company®. These services are provided under the trade name Principal® Custody Solutions, a division of Principal Bank. Principal Trust Company is a trade name of Delaware Charter Guarantee & Trust Company. Principal Bank and Principal Trust Company are members of the Principal Financial Group®, Des Moines, Iowa 50392.

 

When Principal Custody Solutions is providing investment management services, Principal Custody Solutions serves as the investment manager or discretionary trustee but leverages the investment expertise of Principal Global Advisors. Customers may also contract directly with Principal Global Advisors for investment management services. In those instances, Principal Custody Solutions serves solely in a custodial or trustee capacity. Please refer to your underlying service agreements for details.

 

Wells Fargo Bank, N.A., SEI Investments Company (“SEI”), Clearwater Analytics, FedEx Corporation, The Bank of New York Mellon, Depository Trust & Clearing Corporation (“DTCC”), FIS, SWIFT, PricewaterhouseCoopers (“PwC”), Ernst & Young, and KPMG are not affiliates of any company of the Principal Financial Group®.

 

Principal Global Investors, Principal Bank, and Principal Trust Company are members of the Principal Financial Group®, Des Moines, Iowa 50392. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

 

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