Sponsors of the closing plan are expected to complete the steps we have outlined by March 28, 2005. If plan sponsors wish to introduce automatic rollovers by March 28, 2005, they can, in good faith, rely on the final regime, which takes effect immediately. The next steps for plan sponsors should take certain steps to ensure compliance with automatic rollover rules and the safe harbor until the final regulation comes into force. Call us at 515-883-9198 or email us to find out more about our Automatic Rolling Services at Principal Bank. Want to learn more about our services and the benefits to your organization? Here you`ll find out more about what you can expect with our automatic rollover-IRA service. Imagine an IRA automatic rollover as a short-term parking lot for people who change jobs or are part of a program. These accounts are designed to minimize the investment risk of former employees and preserve their savings until they find the right target for their money. Millennium is the largest independent provider of automatic rollover-IRA services in the sector. Let our many years of experience in caring for former participants be guided by your many years of experience so that you will put your time managing the plan for active participants. The benefits are: 1. An automatic rollover is part of the Safe Harbor rules that require companies to provide the necessary information to affected employees, to give instructions for reinvestment, and to terminate up to 60 days that they will be removed from a retirement plan. At the end of this notice period, staff funds go to another investment vehicle called Safe Harbor IRA, which invests in a money fund or other low-risk investment.
If the plan owner wants something else to happen, other options include a cash distribution or rollover to a particular pension account. The Safe Harbour IRA rules were implemented in 2005 as part of the Economic Growth and Tax Relief Act 2001. Signing a service contract helps ensure that accounts automatically accepted by your plan match the DOL Safe Harbor.