Answers to Questions You May Have
Starting a workplace retirement plan is a great idea. Managing one comes with unexpected burdens and costs of managing small balance accounts of terminated employees. Here are answers to a few questions you may have about how eIRA works to solve everyday problems.
Why set up an auto-rollover IRA program?
There are four very good reasons to put an auto-rollover IRA program in place for your workplace retirement plan:
- Reduce administrative costs:
Automatic rollovers reduce the burden and costs of maintaining small-balance retirement accounts for former employees, including lost participants and uncashed checks. - Limit fiduciary responsibility:
Automatic rollovers help plan sponsors avoid risks associated with uncashed checks, such as the inability to locate participants. - Stay compliant:
Automatic rollovers assist larger plans in staying below audit thresholds by managing participant counts. - Reconnect former employees with their retirement savings!
How do you support partners?
It’s all about simplicity and efficiency. We have a singular goal of helping you save time, effort, and money. We deliver on that goal every day by investing in and supporting purpose-built technology to make the process easy and reliable for you.
eIRA supports partners with a streamlined process for managing small balances and locating lost or missing plan participants in ongoing and terminating plans. Our IRA custodian, American Trust, assures partners a secure and compliant process, offering peace of mind and simplicity.
How do you make my workflow easier?
We’ve built our process to incorporate greater automation and fewer steps. That translates to a simpler experience that saves you time and effort. No more plan setup or manual data entry – simply sign an agreement, upload the participant spreadsheet, and send funding. Your team will be able to confidently focus on your core business needs while we work to reunite participants with their retirement savings.
Will this reduce our company’s retirement plan costs?
Depending on your situation, reducing participants in your plan may help bring down administrative or recordkeeping fees and asset-based fees. Reducing your headcount may also help you avoid triggering an expensive financial audit of your plan each year. And, of course, you can expect to save labor by your team that can be more productively directed elsewhere.
What is the impact of the SECURE Act on automatic rollovers?
SECURE 2.0 increased the cash-out or “force out” limit of small balance accounts from $5,000 to $7,000. Automatic rollovers can help plans avoid the accumulation of these accounts, reducing administrative burdens and related costs.
Have questions about plans you serve?
Get in touch. We’re here to help.