DST to Roll Out the Roth 401k
KANSAS CITY, MO, December 21, 2005 -- DST Systems, Inc. will roll out functionality to support the Roth 401k/403(b) in January 2006. DST clients will now be able to offer the new product to their plan sponsors, with the recordkeeping support of DST's retirement platform, TRAC.
The TRAC recordkeeping system will accommodate the new Roth rules for contributions and distributions. It will monitor the initial contribution dates for purposes of calculating the five-year holding period before such contributions can be withdrawn tax-free.
The development of TRAC's 401k/403(b) Roth functionality represents a collaborative effort between DST and its client partners. Client participation is a key element of all significant TRAC enhancements, and a hallmark of DST's development philosophy.
"Participating on this project has given us confidence in DST's ability to support this new product from the beginning, and to quickly address any changes that ultimately need to be made due to updated regulatory guidelines," said Brendan Nolan, senior vice president, MFS. "We're eager to go to our customers with a product that will meet the needs of our plan sponsors and participants under the new Roth 401k provision."
"The development of the Roth functionality highlights the benefits of DST's collaborative approach to working with major retirement services organizations," said Jim Walsh, vice president, DST Systems. "We view this development effort as critical to keeping our partners current with regulatory initiatives and industry trends."
About DST
DST Systems, Inc. (NYSE: DST) provides sophisticated information processing and computer software services and products that help clients improve productivity, increase efficiencies, and provide higher levels of customer service. DST is organized domestically and internationally into two operating segments: Financial Services and Output Solutions. DST operates one of the most advanced data centers in the world, which provides information-processing services to support the products within each operating segment. These products are further enhanced through the integration of DST's advanced technology and e-commerce solutions.
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