A news release said WMSI’s rollover services will be marketed to participants whose account balances fall below their adviser’s account servicing threshold.
California-based PenChecks has a lead generation capability in place to support brokers and advisers and sees the WMSI offering as a way to address the needs of a broader participant group who will not meet the typical adviser’s servicing criteria, the company said in the announcement.
WMSI’s IRA services will provide exiting employees with smaller account balances a choice of IRA rollover options and a rollover process that supports real time IRA account openings and the timely transfer of retirement assets.
“We have noticed an alarming trend in recent years that nearly half of all distributions processed are taken in cash rather than rolled over,” said Peter Preovolos, President of PenChecks Inc., in the news release. “Much of this percentage comes from balances that some participants feel no institution will want to accept because they are too small. That is simply no longer the case. “