Auto Portability | Millennium Trust Company

Millennium Trust Company

Log in
Select Account
Auto Portability

Easily Add Auto Portability

As an optional automatic rollover IRA feature, auto portability connects former employees to their new employer-sponsored retirement plan.
business person sitting casually using laptop

Starting  Jan. 1, 2024, plan sponsors may choose to add auto portability to our leading automatic rollover IRA solution. Auto portability allows for the transfer of a former employee’s retirement plan to an automatic rollover IRA, and then to a new employer-sponsored retirement plan that participates in our (or a connected) auto portability network, unless the individual chooses otherwise at any stage in the process.

How Auto Portability Works

It’s easy to implement Millennium Trust’s auto portability feature in an auto rollover solution.

Once a plan sponsor signs the automatic rollover agreement and opts in to auto portability, the plan service provider uploads participant information to our secure portal.

Millennium Trust receives the funding and opens IRAs. We search for each account holder and send a welcome letter, informing them that their retirement savings are at Millennium Trust and notifying them about auto portability.

Millennium Trust searches at least monthly to see if an account holder is a participant in an employer-sponsored retirement plan within Millennium Trust’s (or a connected) network. If the individual is found to be a participant, we’ll inform them that their retirement savings will be transferred to the new plan unless they choose otherwise.

If an account holder is not located at a new participating employer-sponsored plan, their funds remain in a Millennium Trust IRA. The individual may claim the account at any time and take control of their savings.

Benefits of Millennium Trust’s Network

x

Our network is designed to connect to other networks (and even other automatic rollover providers)  – further improving the functionality and making the adoption of auto portability services easier.

x

Reducing manual transfers creates less friction for individuals and increases inflow opportunities for recordkeepers.

x

Our auto portability network requires little to no technology investment for our partners. It’s a free add-on for plan sponsors and reduces operational expenses for recordkeepers.

  • Open

    x

    Our network is designed to connect to other networks (and even other automatic rollover providers)  – further improving the functionality and making the adoption of auto portability services easier.

  • Easy Transfers

    x

    Reducing manual transfers creates less friction for individuals and increases inflow opportunities for recordkeepers.

  • Low Operational Expenses

    x

    Our auto portability network requires little to no technology investment for our partners. It’s a free add-on for plan sponsors and reduces operational expenses for recordkeepers.

Connect with an Expert

This new feature will be available for testing in June 2023. Learn more about Millennium Trust's optional auto portability functionality.

Does your plan have an auto portability provision?

One of Many Ways We’re Addressing Leakage

Retirement savings leakage happens when individuals take money out of their retirement accounts for reasons other than retirement. It is a critical issue. Automatic rollover IRAs reduce leakage by keeping retirement money in in the tax-advantaged retirement system. 401(k) auto portability can help, but we can do more. Millennium Trust has committed $30 million to combat leakage by reducing friction, expanding access to savings options, and providing more financial education.
 

Auto Portability FAQs
  • Will auto portability reduce retirement savings leakage?

    Automatic rollovers reduce retirement savings leakage by preserving money that would otherwise leave the retirement system in tax-advantaged IRAs.

    Auto portability would transfer these retirement savings from one tax-advantaged retirement account (an IRA) within the retirement system to another (a 401(k)), unless the retirement saver directs otherwise.  

     

    As such, we do not see it as a meaningful way to reduce retirement savings leakage, but as a backstop feature to an effective automatic rollover IRA program.  

    Auto portability only works when an individual leaves a workplace retirement plan that has adopted auto portability and joins a new workplace retirement plan that uses the same auto portability network.

    The individual’s funds will stay in an automatic rollover IRA (unless they direct otherwise) if:

    •    They do not have access to a new workplace retirement plan.
    •    Their new workplace retirement plan has not adopted auto portability.
    •    Their new workplace uses a different auto portability network that does not connect to the individual’s former plan network.

    The choice of an automatic rollover provider is as important as ever.

    We believe the best way to reduce retirement savings leakage is upstream.  That why we have invested more than $30 million and are partnering with recordkeepers, third-party administrators and plan sponsors to:

    •  expand access to savings and investment options, including emergency savings funds and health savings accounts, so people can save enough for immediate needs and are not required to dip into hard-earned retirement savings.
    •  engage individuals, provide financial education, and reduce friction in the retirement savings system. We want to make it easier for people to make and act on their financial decisions.