iVEZT, an early stage company, is offering the new EZ IRA retirement savings platform to small businesses interested in providing payroll-deduction IRAs to their employees. Legg Mason holds a 30% interest in iVEZT.
The EZ IRA can help broaden the availability of a retirement savings program to the approximately 68 million American workers who have no access to an employer-sponsored retirement savings plan. iVEZT is in the process of rolling out the EZ IRA platform including its proprietary enrollment and account management technology with Payce Inc., a Maryland-based payroll company with over 2,200 clients.
Through EZ IRA, participants will be able to sign up and select either a traditional or Roth IRA, and determine the amount to be automatically deducted from their regular paycheck. The retirement savings platform will provide participants on-demand, real-time, 24/7 access to account information, access to a financial adviser to assist with investment selections, periodic account statements and the ability to manage their investments across a variety of Legg Mason mutual funds offered through Legg Mason Investor Services, LLC.
EZ IRA’s retirement savings platform will offer educational information and several calculators to help participants understand the benefits of saving and investing for retirement. The platform includes no employer contributions, no fiduciary liability, no participant restrictions and ease of enrollment in three steps. In addition, participants will own their EZ IRA account for portability if they change jobs.
“The number of people in the U.S. without a way to save for retirement through their work is alarming, especially when we know that saving at work is a major contributor to long-term retirement saving success,” says Gary Kleinschmidt, head of DCIO sales for Legg Mason. “iVEZT, through EZ IRA, will provide a simple, inexpensive systematic payroll deduction program for small businesses to offer their employees a chance to save for their retirement.”
iVEZT engaged with Aspire Financial Services to provide recordkeeping and administrative services for the EZ IRA program.