While automatic enrollment has increased plan participation, it is also contributing to the growing percentage of separated accounts where participants have left money in a retirement plan after retiring or changing jobs. This is one factor driving the increasing need for plan sponsors to clean up their retirement plan account books.
An automated tool for answering the mounting challenge of accumulated small balance accounts left behind.
As a result of the 2001 Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and the 2004 Department of Labor (DOL) fiduciary safe harbor provisions, plan sponsors can execute automatic rollover (or involuntary rollover) programs to purge small balance accounts of terminated participants off their books and into a pre-selected IRA.
DST’s Automatic Rollover Program facilitates the process for plan sponsors, by offering:
Automatic rollovers can be an attractive way to reduce the administrative burden of transitioning small-balance plans. Implementing an automatic rollover program to establish safe harbor IRAs for missing or non-responsive participants provides plan fiduciaries and administrators with several benefits.
Call 800.525.4237 for a one-on-one walkthrough or contact us.