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Automatic Rollovers
1. Does Millennium Trust comply with the Department of Labor Safe Harbor requirements?
Our Automatic Rollover solution fully complies with the
Safe Harbor regulations of Section 657(c) of the Economic Growth and Tax Relief Reconciliation Act of 2001. We are uniquely positioned to service a large volume of small
self directed IRA accounts. We have developed a very complete and efficient process which is flexible and client friendly.
2. What experience does Millennium Trust have with Automatic Rollovers?
Millennium Trust has been interested in providing Automatic Rollover services since the law changes were announced in 2001. We were involved in 2002 and 2003 with the Profit Sharing Council of America's lobbying efforts in Washington to improve proposed regulations. We rolled out our Automatic Rollover solution in 2005 after the Department of Labor published their final regulations. We are working with numerous record keepers and TPAs to provide Automatic Rollover services to their plan sponsor clients, and as of
January 2008, we have agreements with approximately
2,500 plan sponsors to use Millennium Trust's Automatic Rollover services.
3. How does Millennium Trust gather information from plan
sponsors?
Our Automatic Rollover services begin by providing an Automatic Rollover Services Agreement to the plan sponsor. We provide it
electronically and/or in hard copy. We discuss with the plan sponsor and record keeper the best method of sending participation information.
We have developed technology to accept a simple data export from the record keeper. We practice 128 bit encryption and the account creation
process is automated with extensive logging to ensure that each participant's account is created. Participation information includes the participant's name, address, social security number,
birth date, amount and plan name. With this information, we automatically open IRA accounts and populate the Adoption Agreement which is
sent to the participant immediately. We prefer to receive account balances via wire transfer but will also accept check distributions.
We then provide the plan sponsor with confirmation that we opened the IRA accounts and received account balances.
4. What does the participant receive?
Upon opening the self directed IRA account, we send each account owner a professionally packaged Welcome Kit. This kit is well organized and
comprehensive, and includes information about Millennium Trust, how the money is invested, the cost to the account owner, and how to
contact us. The Welcome Kit includes the Adoption Agreement, a Fee Schedule, the Custodial Agreement and Disclosure Statement.
Our dedicated service team is available by phone, email, fax or in person. Each member is experienced with IRA accounts and well trained
on IRS distribution rules. Our service team utilizes a state of the art trust accounting system that keeps track of the underlying
investments, transactions, tax reporting, etc. Our 800 line, email address and fax line are dedicated Automatic Rollover lines.
Each IRA account owner is offered web access to his/her account or annual statements. We
also provide tax reporting including Form 5498 each year.
5. What investment vehicle is available?
The initial automatic rollover investment is an FDIC insured bank money market vehicle which offers a premium interest rate for investors seeking to
minimize risk, preserve principal and maintain liquidity. Other investments including CDs, mutual funds, stocks, bonds, etc. are
available upon request by the account owner.
6. What does Millennium do with wrong addresses?
In situations where we are provided incorrect addresses, we will search for the account owner through locator services. We will resist attempts by state or government agencies to claim these funds by rule of
escheat or otherwise. Our goal is to help the self directed IRA account owners to preserve tax-deferred savings.
7. Does Millennium Trust handle Roth 401(k) rollovers?
Yes. Automatic Rollovers are available for
Roth 401(k)
rollovers. For participants with both pre-tax and Roth 401(k)
balances, a traditional IRA and a Roth IRA will be required to hold
each type of money.
8. Does Millennium Trust take
automatic rollover distributions from
terminated plans?
Yes. Like any ongoing plan, any benefits of $5,000 or less from a
terminated plan may be rolled over to an IRA
under the Automatic Rollover Safe Harbor regulations. For balances greater than $5,000, plan sponsors are required to take additional steps,
as outlined in
Field Assistance Bulletin No. 2004-02, to search for lost participants before the
rollover can take place. We also accept automatic rollovers from
abandoned plans.
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