PenChecks's Launches New Premium IRA Fiduciary Service
SAN DIEGO, CA, September 24, 2009 -- Today, a typical 401k plan likely has a significant percentage of terminated and missing participants with small and large account balances. This is because of variety of factors, including automatic enrollment, high turnover among employees and an increasing number of layoffs in today's economy. Most DC providers and record-keepers charge plan sponsors for these terminated, inactive participant accounts. A simple way to reduce plan costs is to eliminate these accounts.
PenChecks's new Premium IRA Fiduciary Service enables retirement plans with mandatory distribution provisions to satisfy the government's requirements with distributions up to $5,000 as well as missing participants with larger balances. But forcing out such participants can only be accomplished if certain requirements are met. Participants must be informed of their distribution options, and personal IRAs must be set up to receive the participant distributions when the participant fails to provide specific directions.
PenChecks's new Premium IRA Fiduciary Service fully complies with the Safe Harbor regulations and is the only turnkey solution that complies with DOL FAB 2004-02.
"Studies show that 401k plan participants often leave their savings behind in the plan when leaving a job. This increases cost and risk to the plan sponsor. These account balances from terminated and missing participants can be a source of future legal challenges. PenCheck's new Premium IRA Fiduciary Service reduces cost by the elimination of participant recordkeeping fees and reduces risk from these employee terminations for the Plan Sponsor," said Peter E. Preovolos, APA, RIA, AIFA, President & CEO of PenChecks, Inc.
The process is highly automated and simple. Partnering with Third Party Administrators (TPAs), PenChecks will assist in handling all the due diligence requirements in attempting to locate and notify missing plan participants. After minimal data on the Plan Sponsor, Plan and Participant is provided on-line in a safe and encrypted manner, proven PenChecks Technology does all the work.
PenChecks is committed to providing our Automated Rollover Solution at no cost to Plan Providers, Plan Sponsors and T.P.A.'s. All fees associated with these accounts are charged directly to the participant account.
About PenChecks, Inc.
Established in 1994, PenChecks is the most trusted and largest independent provider of outsourced benefit distribution services in the U.S. With our proprietary technology and expertise, we save our customers up to 60%-70% of their staff time and 50% of their hard costs in processing distributions. Our customers include Plan Providers, Plan Advisors, Third Party Administrators and Plan Sponsors. In 2008, PenChecks handled over 44,000 distributions and almost half a billion dollars of payments. For more information, please go to: http://www.PenChecks.com.
###
Click here for more material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues on 401k plans.
This is a press release provided by the company or its representatives. 401khelpcenter.com, LLC is not the author of this release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
