Case Studies

Greenspan & Associates, Inc

case-study7OBJECTIVE:

Streamline the process of administering federal and state withholdings and tax reporting for clients who have plan participants with minimum required distributions and for participants who choose cash lump-sum distributions.

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Company Situation

A pension administration firm based in Encino, California, Greenspan & Associates, Inc. works with companies to design, implement and administer more than 500 retirement plans. When their clients struggled to process tax withholdings, the firm needed an efficient solution other than directing them to work with their own CPAs, which can be expensive.

This changed when Document Specialist Michele Zokaie joined the company in 2012. Having used PenChecks Trust retirement benefits distribution services with previous employers, she immediately recommended their 1099-R and other tax form processing services as a cost-effective solution.


The PenChecks Trust Solution

Zokaie initially set up accounts using PenChecks Trust’s P3 web portal. This easy-to-use and secure portal allows Greenspan to quickly process plan participant benefit election forms. Once the data is entered, everything is automated. PenChecks Trust processes and issues the distribution, including the tax withholding and all federal and state tax reporting. If a plan participant has already received the distribution, Zokaie completes the appropriate form that allows PenChecks Trust to administer the federal and state tax reporting.

As part of this service, PenChecks Trust keeps Zokaie up to date on the status of each plan participant account. This includes reporting all uncashed distribution checks and sending copies of all 1099-R forms to verify the transactions have taken place.


Results

Since working with PenChecks, Greenspan has reduced its administrative workload by offering clients a turnkey solution for their distribution, tax withholding and 1099-R requirements.
This provides Greenspan and their clients the peace of mind knowing that PenChecks Trust seamlessly administers distributions, or federal and state tax withholding and reporting, or both.

In addition, allowing PenChecks Trust to expertly handle these important but time-consuming tasks frees up Greenspan’s staff to focus on higher-value client contact.

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