FPS Trust and iJoin have announced that they now offer a hands-free solution to automatically roll over small accounts in 401(k)s and other qualified retirement plans to individual retirement accounts (IRAs).
The process includes address verification, money movement and account opening for former employee accounts valued at less than $5,000.
The new workstream automatically identifies and confirms eligible accounts, searches for missing participants with frequent address searches and sends required notification mailings. This helps decrease fiduciary liabilities for plan sponsors, FPS notes.
“Plan sponsors are discovering the cost savings of the FPS automated Safe Harbor IRA process, which for many has been a manual and time-consuming process,” says Scott Pearson, president of FPS Trust. “The partnership with iJoin enhances the FPS model by enabling searching for participants more often with no incremental cost, ultimately connecting the participant and their funds faster.”
When funds are rolled over to an FPS Safe Harbor IRA, they are automatically placed in a secure, liquid, fixed-income account, earning some of the highest yields available, the firms say. The yields are currently 1.15% a year and are adjusted quarterly.
Steve McCoy, chief executive officer of iJoin, adds: “FPS’ automated distribution and rollover process contributes to iJoin’s goal of elevating the plan experience for both employees and employers—and it underscores our commitment to presenting best-in-class solutions via a single point of integration.”
The service is now available for clients who license both iJoin and FPS’s distribution processing.