ROLLOVER IRAS
Most not-for-profit organizations offer retirement plans to their employees. But what happens to those employee retirement accounts when employees leave? While many choose to rollover their account on their own, there are a large number of missing and non-responsive participants whose accounts remain in the retirement plan, increasing plan sponsor liabilities and plan administration costs each year.
 
Automatic rollovers can be a valuable tool to help plan sponsors and other plan fiduciaries manage plan liabilities and costs, while meeting their fiduciary duties in accordance with the Department of Labor’s safe harbor for rolling over plan distributions to IRAs.

ROLLOVER IRA REGULATIONS
2001
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) amended the Internal Revenue Code (Code) to allow plans to establish Individual Retirement Accounts (IRAs) for former employees with plan balances less than or equal to $5,000.

2004
Department of Labor (DOL) published final regulations providing plan sponsors a safe harbor for rolling over plan distributions to IRAs.

2005
Internal Revenue Service (IRS) issued IRS Notice 2005-5 clarifying that the automatic rollover rules apply to retirement plans established under 401(a), 403(b) and 457(b) of the Code, which includes plans created for employees of not-for-profit organizations.

Plans can include pension plans, individual account plans such as grandfathered 401(k) plans, Code § 403(b) plans and Code § 457(b) plans.

WHY CHOOSE MILLENNIUM TRUST FOR AUTOMATIC ROLLOVERS?
Millennium Trust Company’s comprehensive Automatic Rollover solution helps plans save time and money, while preserving deferred retirement savings for their former employees.

  • Enhanced Flexibility and Features
  • Unmatched Service and Support       
  • Proven and Innovative Technology
  • Handles Large Volume of Small Accounts
  • Comprehensive Search Procedures
  • Superior Investment Choices for IRA clients

CONTACT US TODAY
Learn how Millennium Trust works with not-for-profit organizations and plan sponsors to rollover missing and non-responsive plan participants into self-directed IRA accounts; helping plans reduce liabilities and costs, while meeting their fiduciary requirements in accordance with the DOLs safe harbor regulations.