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Automatic Rollover IRAs for Lost Plan Participants

Employers

Do you have former employees who have left small balances in your company’s retirement plan? If so, you are not alone. Employers often struggle with the burden of having to maintain account balances in their company’s retirement plan for missing or non-responsive participants. Whether ex-employees have moved, passed away or simply forgotten about their IRAs, these deserted accounts create the following issues for the employer:

  • Ongoing fiduciary responsibility
  • Increased record-keeping and administration costs
  • Plan audits if the participant count climbs above 100
  • Continued DOL disclosures
  • Continued participant mailings of notices, summary annual reports, etc.


In recognition of these issues the federal government issued regulations that provide employers with a simple and cost effective solution. The solution? Employers are allowed to implement an Automatic IRA Rollover Program for missing or non-responsive ex-employees.


For information regarding Colorado National Bank’s Automatic Rollover IRA Program, click here.


Participants

Did you receive a letter from us alerting you that your funds, from your previous employer’s retirement plan, have been rolled over into an IRA? 

If you received IRA paperwork from us, your former employer (in accordance with the provisions of the company’s retirement plan document and applicable government regulations) has established a self-directed Automatic Rollover IRA on your behalf with Colorado National Bank. This is allowed in situations where former employees fail to complete and return a company’s distribution election form and the company’s effort to locate the missing employee proves unsuccessful. For more Participant Information click here.


Service Providers

At Colorado National Bank we understand the important role that service providers, such as TPAs and Record Keepers, fulfill with their clients. We designed our Automatic Rollover IRA Program to address the challenges you confront. Colorado National Bank offers service providers referral fees each year as long as the missing or non responsive participant’s IRA is administered by Colorado National Bank (subject to certain terms and conditions). For more information about our referral fee program contact our marketing department. Referral Program information click here.


For more information concerning Colorado National Bank’s Automatic Rollover IRA Program, please Contact Us.


Disclosure

Investment Products, other than Colorado National Bank’s certificates of deposit, savings, and money market accounts 1) are not deposits, 2) are not insured by the FDIC, 3) are not guaranteed by Colorado National Bank, and 4) may involve investment risk, including the potential loss of principal.