Automatic Rollovers with Millennium Trust

In today’s workplace, most employers offer retirement plans to their employees. But what happens to those employee retirement accounts when employees leave the company? While many choose to roll over their account on their own, there are a large number of missing or non-responsive participants who remain in the retirement plan and increase plan administration costs each year. 


Rollover IRAs For Missing or Non-Responsive Participants

To help reduce these expenses, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) amended the Internal Revenue Code to allow plans to establish Individual Retirement Accounts (IRAs) for former employees with plan balances less than or equal to $5,000. This allows a plan sponsor to effectively outsource these participant accounts to a qualified IRA provider, thereby saving money, time and valuable personnel resources, and at the same time, preserving tax deferred retirement savings for its former employees. For more information, click here

Terminating Plans

For terminating plan distributions, the Department of Labor (DOL) has issued separate guidance on the steps that plan sponsors must take to search for lost participants in Field Assistance Bulletin No. 2004-02. This advice relates only to terminating defined contribution plans. Generally, the notice details what the DOL expects from fiduciaries of terminating plans in terms of looking for missing participants and distributing plan assets. If participants remain missing after following the search steps as outlined by the DOL, plan fiduciaries may be deemed to have satisfied their ERISA fiduciary responsibilities by rolling over benefits to an IRA, regardless of the amount. For a white paper on this topic, click here.

Millennium Trust’s Expertise

Millennium Trust Company’s Comprehensive Automatic Rollover Solution helps plan sponsors save time and money, while preserving deferred retirement savings for its former employees.

Our solution is flexible, efficient and fully complies with the DOL’s safe harbor regulations. We are uniquely positioned to work with record keepers, TPAs and plan sponsors to service a large volume of small IRA accounts. Today, hundreds of TPAs work with us, and we have over 10,000 Automatic Rollover agreements with plan sponsors. To discover the top 5 reasons you'll select Millennium Trust as your Automatic Rollover Solution provider, click here.

Get Started Today!

You can start rolling over your retirement plans in three easy steps:

1. Sign an Automatic Rollover Services Agreement

2. Send us participant information
3. Transfer the participant funds to Millennium Trust