Products July 28, 2009

SunGard Retirement Platform to Offer iShares Trading

SunGard has teamed up with iShares to launch a solution to help advisers and third-party administrators (TPAs) incorporate exchange-traded funds (ETFs) as standard options in defined contribution plans.

Reported by

TPAs and advisers using SunGard’s Omni and Relius recordkeeping platforms for benefit administration will be able to access and trade iShares ETFs through an integrated link to the SunGard Transaction Network (STN), according to a news release. ETF custodial services will be provided by Mid Atlantic Trust Company’s ETFxChange platform.

SunGard said the new solution will help retirement plan providers that choose to invest in ETFs to do so using proven systems for mutual funds with enhanced processing specifically for ETFs, allowing TPAs and advisers to trade and settle ETFs like no-load mutual funds. The system will allow for integration of ETFs and mutual funds within 401(k), 457, or 403(b) retirement plans.

“ETFs have continued to experience tremendous growth as investors seek alternative options to fund their retirement,” said Darek Wojnar, head of product strategy at iShares, in the release. “SunGard’s ETF solution will help provide the trading support and operational efficiencies that TPAs and their advisers need to help clients better manage risk through portfolio diversification.”

Products July 28, 2009

Sunwest Trust Rolls Out Individual 401(k) Services

An Albuquerque, New Mexico-based firm has launched an “Individual 401k (i401k)” for small-business owners looking for retirement plan options.  

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“The i401k gives self-employed business owners the same tax benefits that large corporations have enjoyed for years,” says Terry White, CEO of Sunwest Trust, Inc. in the announcement. 

According to the press release, with an i401k, business owners may be eligible to contribute far greater amounts to their 401ks than they could with any other type of retirement plan, and business owners can designate some or all of your deferrals as Roth contributions.  The press release also notes that, unlike a self-directed IRA, you may take loans from your i401k. 

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White notes “…the i401k is not for every small business owner and that there are restrictions and guidelines someone must follow in order to be eligible.” White recommends, those who seek to invest using the i401k, “consult a tax professional to make sure that they are making their contributions correctly and to help them fill out the form 5500-EZ when their i401k accumulates over $250,000.00.”  Additionally, to be eligible to have an i401k, you must be a self-employed business owner with no full-time employees other than your spouse.  

Sunwest Trust is an independently owned private company that offers self directed IRA custodian, escrow and now Individual 401k services. FDIC insured banks back the self directed IRA funds of their clients, according to the firm.   

More information is available at http://www.SunwestTrust.com.

 

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