Account Holder Information
Welcome to PenChecks Trust, the largest independent processor of outsourced retirement plan distribution services in the country. If you received an IRS Tax Form 5498 or 1099-R, see below for more information about these forms.
But first, check out this short video to see the most common reason why PenChecks Trust may have an account for you.
How PenChecks Trust Ended Up With An Account For You
If you’ve been directed by your retirement plan sponsor to contact PenChecks Trust about your account, you may be wondering how we came to be the custodian of your assets. This short video shows what can happen to retirement accounts when employees leave their employers, and shows how PenChecks helps, and how you can initiate the process to reclaim your retirement funds.
Form 5498 Information
Form 1099-R Information
Recipients of Both Forms (5498 and 1099-R)
- A Form 1099-R for the distribution out of your retirement plan
- A Form 5498 reporting the value of your IRA at the end of the year
What You Should Do Now
- You may leave your retirement funds in your IRA Account with PenChecks Trust. We will continue to provide custodial and record-keeping services, including the crediting of monthly interest. If you would like to diversify your investment choices from the current Federally-allowed default investments, we can assist you with this.
- You may request a rollover distribution of your funds and have them transferred:
a) to another existing IRA you currently own (if you do not have another IRA and would like to establish one, PenChecks Trust can help you with this), or
b) to a new employer’s qualified plan that accepts the rollover of retirement funds.
- You may request that your IRA funds be paid directly to you. If you choose this option, the funds will be subject to federal withholding and income taxes as well as state withholding taxes (if applicable).
If you choose to exercise options 2 or 3 above, you can request a distribution of your funds in one of two ways:
- Go to the following secure site: www.MyBenefitElection.com/MyIRA
- Select the “Inquiry” section
- Enter your first and last name (exactly as they appear on the Form 5498) and your social security number
- You will be able to enter benefit election details and submit the required information through the secure online portal
- Call toll-free (844) 44-MY-IRA
- You will be able to request paper benefit election forms which may be completed and returned to us for processing.
If you have questions or would like further assistance, please contact us toll-free at (844) 44-MY-IRA or email firstname.lastname@example.org.
- Code 1 – Early Distribution: Typically a taxable distribution where the recipient is under age 59 ½ and may be subject to an additional early withdrawal tax of 10%.
- Code 7 – Normal Distribution: Typically a taxable distribution where the recipient is over age 59 ½.
- Code G – Direct Rollover: Regardless of age, is a distribution from a qualified plan to another eligible retirement plan. Typically there are no immediate tax consequences.
*For detailed information about all of the data contained on a 1099-R and its implications, see www.irs.gov/pub/irs-pdf/i1099r.pdf.
*Please note: You should always consult a tax professional for advice on your specific situation.If you have questions about the distribution you received, your 1099-R from PenChecks Trust, or if you need a duplicate copy of your 1099-R, you can reach a Participant Services representative here:
- Phone: (800) 541-3938
- Email: email@example.com
Important Updates for Individual Retirement Account Holders
In accordance with Section E.8 of the PenChecks Trust Company of America Automatic Rollover and Missing Participant Individual Retirement Account Custodial Agreement or PenChecks Trust Client Services Agreement and Statement of Services and Fees, please be advised of the following change:
Beginning February 15, 2021, PenChecks Trust is improving its Express, Enhanced, and Premier IRA Programs. PenChecks Trust will continue to provide its Bank Deposit Program (“BDP”) during the first twelve (12) months that an Automatic Rollover or Missing Participant IRA is with PenChecks Trust. After the first twelve (12) months, PenChecks Trust now offers the Stable Value Program (“SVP”). The SVP allows the Participant Account Holder or Sponsor to direct PenChecks Trust to invest the Automatic Rollover and Missing Participant IRA in the Guaranteed Fixed Income Fund offered by the Standard Insurance Company pursuant to the agreement between PenChecks Trust and The Standard.
While no specific rate of return is guaranteed, the goal of this program change is to increase the retirement earnings for the individual Account Holders over the life of their IRA, while still maintaining the assets in a conservative, low-risk investment.
The administration fees in the SVP will remain the same as the administration fees in the BDP. The PenChecks SVP fee will be a maximum of 0.1667% monthly. However, there will be no SVP administration fees assessed on the Initial Program Earnings (“IPE”). The IPE is a rate equivalent to the National FDIC Jumbo Money Market rate which is set quarterly.
If you do not wish to participate in the PenChecks Trust Stable Value Program, you must claim your account by February 15, 2021. Participants who fail to claim their account by the aforementioned date consent to this change.
For a full copy of the PenChecks Trust Company of America Automatic Rollover and Missing Participant Individual Retirement Account Custodial Agreement or Client Services Agreement, please contact PenChecks Trust at 800-541-3938.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), required minimum distributions (RMDs) for 2020 have been waived for IRAs and retirement plans, including beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70 ½ in 2019 and took their first RMD in 2020.
In accordance with the directive of the CARES Act and in an effort to preserve long-term retirement savings, PenChecks Trust will not be automatically processing RMDs from Automatic Rollover and Missing Participant IRA Accounts for 2020. If you previously received a Form 5498 in early 2020 that indicated an RMD was required from your account for 2020, the relief provided by the CARES Act has superseded that notice and PenChecks has accordingly suspended RMD activity on your account for the 2020 tax year.
Please Note: PenChecks Trust Automatic Rollover and Missing Participant IRA Accounts that contain Roth funds do not require withdrawals until after the death of the owner.
If you have questions about RMDs from your IRA or your account, in general, please contact PenChecks Trust at 800-541-3938.