A news release said that RolloverSystems will process automatic rollovers as well as voluntary rollover distributions for eligible terminated participants of of Alliance Benefit Group. According to the announcement, the IRA providers RolloverSystems offers include Fidelity Investments, Charles Schwab & Co., JPMorgan Chase, TD Waterhouse, American Century Investments, New York Life and Harrisdirect. The company also has providers only offering the Safe Harbor IRA option, including Centier Bank and Millennium Trust Company, added to RolloverSystems just last week.
“This relationship will provide additional advantages to our clients,” says Alliance President John Blossom. “We now offer a cost-effective way for plan sponsors to avoid warehousing small-balance terminated participants. Our plan clients will reduce plan administration costs and eliminate the hassle of locating and serving former participants.”
In addition, RolloverSystems, a Charlotte, North Carolina-based firm, provides automatic rollovers, the news release said. Plan sponsors choose from a list of pre-approved safe harbor IRA providers and RolloverSystems helps implement a program.
More information about RolloverSystems is at www.rolloversystems.com .
A new federal law requires employers to roll over 401(k) balances of between $1,000 and $5,000 of ex-employees. Under the new provision, if the plan participant doesn’t choose a distribution option, the plan sponsor must either roll over the balance to an IRA or leave the money in the plan indefinitely.