According to a company news release, TRUSTlynx will impose a flat fee per account and the sponsoring company adds appropriate fees for the additional services or expertise provided. As part of its support, TRUSTlynx will use the program sponsor’s logo to customize a Web site, Voice Response Unit (VRU) and IRA owner communications, TRUSTlynx said.
TRUSTlynx said that in addition to fees received by clients in the IRA and revenue from TRUSTlynx, TPAs, banks or insurance companies become part of a broader service package. With the Program-Sponsored IRA, TRUSTlynx said it provides:
- trustee services, including IRA plan and trust documents
- custody of assets
- web-based and VRU account inquiry and trading services
- distribution processing and maintenance of contribution records
- form 1099-R and Form 5498 reporting
- proxy and prospectus mailings
- account maintenance
- quarterly statements and IRA owner communications
- daily pricing of securities
Immediately available to accept direct rollovers from retiring or terminating plan participants, IRA owners can keep their assets invested without interruption and eliminate the mandatory 20% federal income tax withholding for distributions. Also, through the program sponsor, TRUSTlynx gives IRA owners access to up to 1,400 mutual funds without a transaction fee.
TRUSTlynx is a service of the Denver, Colorado-based First Trust Corporation, a subsidiary of Fiserv, Inc. TRUSTlynx ( www.trustlynx.com ) provides TPAs custody and electronic trading support services of daily valued and defined benefit retirement plan assets. First Trust Corporation administers nearly 259,000 retirement and custodial accounts valued at $21.8 billion, according to the announcement.