No CPG does not allow loans under the 401k program. The plan does allow a Hardship Withdrawal per IRS regulations:


  • The employee has to contact Principal directly to initiate this. HR nor Payroll has any involvement in the process.


Some common types of Hardship withdrawals

  • Pay for funeral costs for a family member
  • Purchase a home or prevent a home from going into foreclosure
  • Pay for medical bills going into collections
  • Pay for secondary education for yourself or an immediate family member


CPG things to remember

  • If you have a hardship withdrawal issued, you can't contribute to the plan for 6 months. 


IRS things to remember

  • If you are younger than 59 1/2 you will pay taxes on the withdrawal via the current tax rate
  • If you are younger than 59 1/2, you will pay a 10% early withdrawal penalty.
  • If you are older than 59 1/2, you will not pay a 10% early withdrawal penalty, but you will pay appropriate taxes on the withdrawal. 


Principal's main contact phone number is 800-986-3343