WMSI CEO Jude Metcalfe said in the announcement service providers now offering Roth 401(k) accounts, created by the Economic Growth Tax Relief and Reconciliation Act (EGTRRA), are left with low account balances by participants who have terminated. The IRS issued the automatic rollover rule in 2004, also as part of EGTRRA, requiring mandatory distributions of more than $1,000 from a qualified retirement plan be rolled over into a individual retirement account (IRA) unless the participant opts for another plan to be used (See IRS, Treasury Issue Automatic Rollover Guidance).
The Pension Protection Act, signed by President Bush in August 2006, made the provisions of EGTRRA permanent (See Cover: The Pension Protection Act: This Changes Everything ).
In January 2005, WMSI announced its automatic rollover solution, Rollover Systems Network, would be offered free to plan sponsors and participants as WMSI received fee revenue from the providers with which it does business (See WMSI: Rollover Services Offered at No Cost ).
Additional information about WMSI can be found at www.wealthmsi.com .