E*TRADE Will Take EGTRRA Required IRA Rollover Accounts
NEW YORK, NY, December 20, 2004 -- E*TRADE Securities LLC, a wholly-owned subsidiary of E*TRADE FINANCIAL Corporation (NYSE: ET), today announced it will provide IRA accounts to investors holding 401k assets that fall under the September 2004 amendment to the Economic Growth and Tax Relief Reconciliation (EGTRRA) Act 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 401k accounts belonging to participants who have changed or left their jobs and missed their 401k rollover deadline. E*TRADE Securities is the first brokerage firm to announce a program that will convert these 401k assets into individual IRA accounts, providing employers and 401k plan administrators with a convenient and cost-effective mechanism with which rollover assets can be transferred to E*TRADE Securities.
The EGTRRA amendment was enacted to help preserve the assets of 401k participants by limiting their exposure to penalties and taxes; and approximately 361,000 former participants will be affected when the amendment goes into effect on March 28, 2005. The amendment will require employers to transfer the 401k assets, individually valued from $1,000 to $5,000, to interest-bearing IRAs when rollover deadlines pass.
"E*TRADE FINANCIAL seeks business opportunities that allow us to uncover value for consumers," said Lou Klobuchar, Chief Brokerage Officer and President, E*TRADE Securities. "We're committed to delivering products like the EGTRRA IRA program that will further distinguish us in the marketplace."
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provides financial services including brokerage, banking and lending for retail, corporate and institutional customers. Securities products and services are offered by E*TRADE Securities LLC (Member NASD/SIPC). Bank and lending products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. Bank deposits are FDIC-insured up to $100,000. Subject to credit approval.
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