FPS and iJoin Launch Seamless Automation for Safe Harbor, Auto-Failover IRAs
CENTENNIAL, Colorado., May 25, 2021 / PRNewswire / – FPS and iJoin now offer a hands-free solution to automatically transfer small 401 (k) s and other qualified pension plans to Individual Retirement Accounts (IRA). This fully automated process includes address verification, money movements and account opening for former employee accounts valued at less than $ 5,000. The new workflow automatically identifies and confirms eligible accounts, searches for missing attendees with frequent address searches, and sends the required notification mailings.
The new partnership builds on the low-cost automated solution already available through FPS Trust by offering a higher frequency of qualifying account rollovers, which ultimately gets funds back into the hands of terminated participants as quickly as possible. by reducing the fiduciary responsibility of the plan sponsor.
“Plan sponsors are discovering the cost savings of the automated FPS Safe Harbor IRA process, which for many has been a manual and time-consuming process,” says Scott pearson, President, FPS Trust. “Partnering with iJoin enhances the FPS model by allowing participant search more often at no additional cost, ultimately connecting the participant and their funds faster.
When funds are transferred to an FPS Safe Harbor IRA, they are automatically placed in a secure, liquid fixed income account, generating some of the highest returns available nationwide, currently 1.15% per annum and adjusted quarterly.
CEO of iJoin, Steve mccoy added, “The automated FPS distribution and transfer process contributes to iJoin’s goal of improving the plan experience for employees and employers. And it underscores our commitment to present best-in-class solutions through a single point of integration.
The solution is now available for customers who use both iJoin ACT and FPS Dispense Processing.
About FPS Group
FPS Group is a leading provider of trust, custody and recordkeeping services to the pension industry. Our innovative multi-vendor, multi-asset class approach delivers superior value to the financial advisers, plan sponsors, investment providers, TPAs, insurers and investors they serve.
Founded in 2012, FPS helps hundreds of thousands of people invest billions of dollars to achieve their retirement goals. FPS services include:
- Full Service Record Keeping – 401 (a), 403 (b), 457, FICA-Alternative, and Health Savings Accounts
- IRA Safe Harbor Auto-Rollover Services – for all DC plans including 401 (k)
- IRA Accounts – Traditional and Roth
- Paying agent services
E-mail: [email protected]
SOURCE FPS Group