Schwab Comes Out with Rollover Product

March 10, 2005 ( - Schwab Corporate Services has introduced The Charles Schwab Trust Company (CSTC) Rollover Individual Retirement Account (IRA).

According to a Schwab news release, features of the CSTC Rollover IRA include:

  • compliance with Department of Labor safe harbor provisions
  • no distribution or setup fee for participants or plan sponsors
  • automated distribution process
  • automated IRA account opening and funding
  • annual account fee of $50

“This product is a benefit to plan sponsors and the third party administrators who serve them, allowing them to easily roll over balances and comply with new regulations without having to build new processes or systems,” said Mark Coffrini, vice president of Schwab Corporate Services, in the news release.   “In addition, we provide the plan participants with all the materials and resources they need to manage and monitor their new IRA.”

The new offering comes as the new automatic rollover rules are scheduled to go into effect. Come March 28, plans with mandatory distribution provisions will have to have something in place to deal with distributions of more than $1,000 for which participant does not provide distribution instructions (See IRS, Treasury Issue Automatic Rollover Guidance ).