Frequently Asked Questions (FAQs) | Schwab - Millennium Trust Company
Frequently Asked Questions

Quick answers to your most immediate questions

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  • Does Millennium Trust comply with the Deparment of Labor (DOL) 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 IRAs. We have developed a very complete and efficient process which is flexible and client friendly.

  • What experience does Millennium Trust have with Automatic Rollovers?

    Millennium Trust began working on our Automatic Rollover solution when the law changes were first 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 we have agreements with approximately 40,000 plan sponsors to use Millennium Trust's Automatic Rollover services.

  • How does Millennium Trust gather information from plan sponsors?

    Our process begins by providing an Automatic Rollover Services Agreement to the plan sponsor. We provide it electronically and/or in a paper version. We discuss with the plan sponsor and recordkeeper the best method of sending participant information. We have developed technology to accept a simple data export from the plan sponsor or recordkeeper using a secure portal. Participant information includes the participant's name, address, social security number, birth date, amount and plan name. With this information, we automatically open IRAs and send out a Welcome Kit to each participant. We prefer to receive account balances via wire transfer but will also accept check distributions. We then provide the TPA or plan sponsor with confirmation that we opened the IRAs and received account balances.

  • What does the participant receive?

    Once an IRA is established and an accurate address is on file, a professionally packaged Welcome Kit is sent to the IRA owner. The kit is well organized and comprehensive, and includes information about Millennium Trust, how the IRA is invested, our fee schedule, links to our account agreements, and how to contact us.

    Our dedicated client service team is available by phone, email, fax or in person. Each member is experienced with IRAs and well trained on IRS distribution rules. Our client service team utilizes a state of the art trust accounting system that keeps track of the underlying investments, transactions, tax reporting, etc. The Automatic Rollover group has a dedicated 800 line, email address and fax line.

    Each IRA owner is offered web access to his/her account or annual paper statements. We also process tax reporting including Forms 1099 and 5498 per IRS requirements.

  • What investment vehicle is available?

    The initial automatic rollover investment is an FDIC-insured, interest-bearing bank demand account which offers a competitive interest rate for investors seeking to minimize risk, preserve principal and maintain liquidity. Annuities can be used when required. Other investments including CDs, mutual funds, stocks, ETFs, bonds, etc. can be held in the IRA as directed by the account owner.

  • What does Millennium do with incorrect addresses?

    In situations where we are provided incorrect addresses, we will search for the account owner through locator services and U.S. Post Office National Change of Address (NCOA) records. Our goal is to reunite the account holder with their retirement savings. For more information on participant searches, view our fact sheet.

  • 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 the balances from each type of account.

  • Does Millennium Trust take automatic rollover distributions from terminated plans?

    Yes, Millennium Trust has helped many Trustees, QTAs, record keepers, TPAs and plan sponsors with automatic rollovers for terminating and abandoned plans. Plan sponsors are required to take additional steps, as outlined by the DOL, to search for lost participants before the rollover can take place.