Schwab Corporate Services Introduces New Rollover IRA Product
11 March 2005 - 4:54AM
PR Newswire (US)
Schwab Corporate Services Introduces New Rollover IRA Product New
product provides safe harbor for automatic rollover of small
retirement account balances SAN FRANCISCO, March 10
/PRNewswire-FirstCall/ -- Schwab Corporate Services has introduced
The Charles Schwab Trust Company (CSTC) Rollover Individual
Retirement Account (IRA), a product that allows plan sponsors a
simple, cost-effective way to roll over qualified plan balances of
former employees without paying distribution or setup fees. Federal
regulations effective March 28, 2005 require tax-qualified plans
with force-out provisions to roll over (instead of directly pay
out) retirement distributions between $1,000 and $5,000 to an IRA
for terminated participants who have not elected to take a
distribution. The CSTC Rollover IRA helps plan sponsors comply with
these regulations by automatically establishing and funding an IRA
for each affected participant. "This product is a benefit to plan
sponsors and the third party administrators who serve them,
allowing them to easily roll over balances and comply with new
regulations without having to build new processes or systems," said
Mark Coffrini, vice president of Schwab Corporate Services. "In
addition, we provide the plan participants with all the materials
and resources they need to manage and monitor their new IRA." The
features of the CSTC Rollover IRA include: -- Compliance with
Department of Labor safe harbor provisions -- No distribution or
setup fee for participants or plan sponsors -- Automated
distribution process -- Automated IRA account opening and funding
-- Competitive low annual account fee of $50 IRA participant
balances will be invested in FDIC-insured bank deposit accounts.
About Schwab Corporate Services Schwab Corporate Services (SCS)
provides services to retirement plan sponsors and participants
through Schwab Retirement Plan Services, Inc. (SRPS), The Charles
Schwab Trust Company (CSTC), and Charles Schwab & Co., Inc. SCS
also provides equity compensation plan services and other financial
and retirement services to corporations and executives. SRPS
provides recordkeeping and related services with respect to
retirement plans. CSTC, a California state-chartered trust company,
provides trust and custody services to retirement plan sponsors.
Charles Schwab & Co., Inc. (Member SIPC) is a registered
broker/dealer, offering the Schwab Personal Choice Retirement
Account(R) (PCRA), as well as other brokerage and custody services
to its customers. These entities are affiliates of each other and
are wholly owned subsidiaries of The Charles Schwab Corporation.
Total client assets in employer-sponsored retirement plans at
Schwab equaled $131 billion at the end of 2004. The Charles Schwab
Corporation (NYSE / Nasdaq: SCH), through Charles Schwab & Co.,
Inc. (member SIPC), U.S. Trust Corporation (member FDIC),
CyberTrader(R), Inc. (member SIPC) and its other operating
subsidiaries, is one of the nation's largest financial services
firms. (0305-6653) DATASOURCE: Charles Schwab CONTACT: Lindsay
Tiles of Charles Schwab, +1-415-667-3997 or Web site:
http://www.schwab.com/
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