To address our clients growing needs, we have expanded our custody solutions to make the retirement plan distribution processing simple for our clients. These services can be used in combination with our standard Automatic Rollover Solution or on their own, depending on the need.

Whether a check is returned to the retirement plan or remains uncashed by the participant, the result is the same in that the balance remains an asset of the plan. The participant remains disconnected from their retirement funds and may not be accumulating interest and the plan continues to incur costs associated with administering these accounts in limbo.

The plan may handle uncashed checks in the same manner as plan funds for other missing or non-responsive participants by rolling them into IRAs at Millennium Trust in the name of the payee participants of the checks. The funds are invested in FDIC-insured, interest-bearing bank accounts. Attempts to initiate contact to the participant are made by beginning a comprehensive participant search and sending welcome kits to the individuals.

Millennium Trust offers a complete FAB 2014-01 compliant program to relieve plan sponsors of the burden and time involved in locating and notifying missing participants and distributing account balances prior to plan termination. Plan sponsors may choose from an ala carte menu of plan termination services tailored to the needs of the plan.

For an abandoned plan, Millennium Trust can assist the plan fiduciary or entity acting as the Qualified Termination Administrator (QTA), and in certain circumstances act as QTA to terminate or wind down the plan according to DOL and QTA requirements.

Services include participant search and notification services, collecting participant benefit elections and establishing missing participant IRAs for non-responsive participants.

With regulations that eliminate the need for the paper version of Form 8109-B, Millennium Trust offers a check distribution and tax reporting service that helps the TPA with depositing federal taxes electronically. As directed, we execute benefit disbursements to participants including withholding, remitting and reporting all appropriate Federal and State withholding and administering all applicable reporting. We facilitate and remit TPA benefit distribution fees, as applicable. TPAs and plans can save time and resources and leverage Millennium Trust’s expertise associated with administering distributions by using this solution.

TPAs and plan sponsors send us the data on their terminated participants. Millennium Trust then mails a notification letter with appropriate distribution and tax information to each terminated participant. Participants who respond receive their elected distributions and then the plan directs the funds of non-responsive participants (with balances less than $5,000) to be rolled into automatic rollover IRAs that are safe harbor compliant.

A payroll deducted IRA is an easy way for businesses to give employees an opportunity to save for retirement. The employer sets up the payroll deduction IRA program with us and then employees choose whether and how much they want deducted from their paychecks and deposited into the IRA.

In addition to the convenience of a payroll deduction, employees may invest in a wide  array of investment options including mutual funds, stocks, bonds and CDs.

This solution is designed for employees to save for retirement that are not covered by an employer retirement plan. A payroll deduction IRA at Millennium Trust can simplify the process and encourage employees to get started.