Principal Introduces Annuity-Based IRA

NU Online News Service, Jan. 23, 12:07 p.m. – The Principal Financial Group Inc., Des Moines, Iowa, has introduced the Principal Income IRA account, an account aimed at baby boomers who are rolling assets out of employer-sponsored retirement savings plans.

The account combines a mutual fund-based brokerage account with an immediate annuity that will pay customers a guaranteed lifetime income stream, Principal says. The annuities are written by Principal's Principal Life Insurance Company unit.

The program includes cost-of-living adjustments and an option that lets purchasers allocate income to pay for a caregiver or pay income to a surviving spouse.