IRA

Automatic Rollover IRA Distribution Solutions

Automatic rollover IRAs provide a safe, cost-effective tool for institutional plan providers, plan sponsors, and third-party administrators to manage plan assets for participants who don’t respond to benefit election requests. With PenChecks fully compliant IRA distribution services you can:
  • Lower your retirement plan administration costs
  • Reduce your fiduciary exposure
  • Protect participants’ deferred tax status
  • Ensure proper distribution of funds when participants can’t be located
  • Redirect your staff’s time and resources to other business processes

Combining our experience and expertise with cutting-edge benefits distribution technologies, we establish automatic rollover IRAs that comply with all IRA distribution rules while meeting the needs of your retirement plan distribution process and your plan participants.

If you’re a TPA or plan advisor, our automatic rollover IRAs can help you retain current clients and acquire new ones by offering a solution that helps them save time and money by:

  • Safely managing missing or unresponsive participant assets
  • Removing unresponsive participants from the plan
  • Legally terminating plans that include non-responsive or missing participants
  • Ensuring proper distribution of funds when participants can’t be located
  • Potentially avoiding required annual plan audits by reducing the plan size

The Pioneer in IRA Distribution Solutions

A true innovator in retirement plan distribution solutions, PenChecks introduced the first commercially available automatic rollover IRA program in 1998. The IRS officially recognized automatic rollover IRAs with the passage of EGTRRA in 2001, and since then these tools have played a key role in the proper management of unclaimed retirement plan assets.

PenChecks automatic rollover solutions include two distinct types of IRA accounts:

  • Default IRA. Designed for participants who fail to respond to an employer’s request for payout instructions:
    • The IRA must be used with ongoing, qualified pension plans.

Learn more about Default IRAs.

  • Missing Participant IRA. Designed for participants who have terminated their employment with the plan sponsor but have not provided a forwarding address:
    • The retirement plan must be terminating.

Learn more about missing participant IRAs.

Once established, these individual retirement account rollover plans help non-responsive participants:

  • Protect their tax-deferred status
  • Avoid taxation and potential early withdrawal penalties
  • Increase the chances of collecting their retirement account funds

Keeping You Compliant with IRA Distribution Rules

Automatic rollover IRAs are highly complex and heavily regulated individual retirement account tools. Falling out of compliance in even one area can put you and your plan participants at financial risk. PenChecks helps protect against these risks by ensuring your automatic rollover IRAs are fully compliant with all IRS and Department of Labor (DOL) regulations.

To keep your automatic rollover plans safe, secure and cost-effective, PenChecks’ Default and missing participant IRA programs:

  • Are DOL safe harbor compliant
  • Follow all DOL participant notification regulations
  • Reduce unnecessary plan sponsor expenses; all fees can be charged to participants’ accounts
  • Limit plan trustee fiduciary exposure
  • Automatically register non-responsive participants with the National Registry of Unclaimed Retirement Benefits
  • Protect the qualified status of non-responsive terminated participants’ retirement account
  • Service the non-responsive participant upon contacting PenChecks to collect their account balance

Our knowledgeable advisors keep you current on all regulatory changes regarding IRA distribution rules, so you can have confidence that your automatic rollover IRAs will comply with the latest government regulations.

To learn more about how our auto rollover IRA services can help protect you and your clients, call (800) 541-3938 today!

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