Principal Financial Group has joined a growing list of record keepers that are eliminating fees on loans and hardship withdrawals taken from retirement plan accounts as a result of the coronavirus outbreak.
Principal said in a news release Monday that it and Wells Fargo Institutional Retirement & Trust — which Principal Financial acquired in July — are waiving participant-paid distribution and loan origination fees for participants taking tax-favored withdrawals, hardship withdrawals or loans from their retirement accounts. In addition, it will waive fees it charges plan sponsors for plan amendments needed to allow participants to pull money out of their accounts, or to reduce or remove their own employer contributions.
"As we all focus on keeping ourselves and our families safe and healthy, we want to help many of our customers reduce short-term financial burdens enabling them to stay committed to their long-term financial plans and security," said Daniel J. Houston, chairman, president and CEO of Principal, in the news release.
Principal follows Voya Financial and Empower Retirement, which recently announced similar fee waivers. Empower said the fee waivers would remain in place until further notice, while Voya said it would keep them through Sept. 30.
Other record keepers that have waived fees but have not make public announcements include John Hancock Retirement and Vanguard Group.