E-Trade to Provide Rollover IRA Accounts Mandated by EGTRRA

December 20, 2004 (PLANSPONSOR.com) - E-Trade Securities has announced that it will provide individual retirement accounts to 401(k) investors with assets that fall under the September amendment to the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001.

Beginning in March 2005, through an exclusive agreement with rollover solutions provider Wealth Management Systems, Inc., E*TRADE Securities will accept rollover assets from 401(k) accounts belonging to participants who have changed or left their jobs and missed their 401(k) rollover deadline.  The firms announced an agreement to work together last August (see  E*TRADE Joins Rollover Network ).


The amendment to EGTRRA goes into effect in March, and will require employers to transfer 401(k) assets individually valued between $1,000 and $5,000 to IRAs when rollover deadlines pass (See DoL Releases EGTRRA IRA Rollover Rule ). This will affect 361,000 former participants, the Labor Department reported.