Efficient workstream benefits both employers and participants.
FPS Trust and iJoin now offer a hands-free solution to automatically rollover small accounts in 401(k)s and other qualified retirement plans to individual retirement accounts (IRA). This fully automated 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.
“These first 40 recordkeepers have a distinct competitive advantage in the marketplace today and we’re going to do everything we can as a technology partner to help them maximize that advantage.” - Steve McCoy
The new partnership builds on the low-cost automated solution already available through FPS Trust by providing a higher frequency of eligible account rollovers, which ultimately gets funds into the hands of terminated participants as quickly as possible while decreasing fiduciary liability for the plan sponsor.
“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, 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 nationwide, currently 1.15% annually and adjusted quarterly.
iJoin’s CEO, Steve McCoy added,
“FPS’s 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 solution is now available for clients who license both iJoin ACT and FPS’s distribution processing.
About FPS Group
FPS Group is a leading provider of trust, custody, and recordkeeping services to the retirement plan industry. Our innovative multi-provider, multi-asset class approach delivers superior value for Financial Advisors, Plan Sponsors, Investment Providers, TPAs, Insurance Carriers, and the Investors they serve.
Founded in 2012, FPS helps hundreds of thousands of individuals invest billions of dollars toward achieving their retirement goals. FPS services include:
- Full-service recordkeeping – 401(a), 403(b), 457, FICA-Alternative, and Health Savings Accounts
- Safe Harbor Auto-Rollover IRA Services – for all DC Plans, including 401(k)
- IRA Accounts – Traditional and Roth
- Paying Agent services
FPS Trust is a wholly-owned subsidiary of FPS Group, LLC.