Success Story

Company Situation:

Many of ANGELL’s clients, especially those with brokerage accounts, struggle with record keeping and tracking, as well as the tax withholding and remittance aspects of plan distributions. Others have problems finding and cashing out missing participants when terminating plans.

As part of their services, ANGELL assists these clients in completing these burdensome tasks. To reduce the administrative workload of their own staff and that of their clients, ANGELL now refers these clients to PenChecks Trust®.

In most cases, ANGELL or the plan sponsor transmits the benefit election form to the participant, and ANGELL assists in completing the distribution instructions to PenChecks Trust. In the case of lost or missing participants, the applicable information is provided to PenChecks Trust, and they complete the search process and benefit payment.

PenChecks Trust handles the entire process, from cutting and mailing checks (or processing wires or ACHs) to withholding and reporting taxes and the remittance process. They even generate and file the required 1099-R forms at the end of the year. PenChecks Trust also offers a complete missing participant solution that involves locating unresponsive plan participants and reuniting them with their funds.

When former employee plan participants are unresponsive, PenChecks Trust initiates search efforts to locate them. When they are found, they process the benefit election forms, and then processes the distributions via check, wire or ACH. When participants can’t be located or otherwise fail to respond, PenChecks Trust establishes Automatic Rollover IRAs to ensure the assets are properly managed according to Department of Labor Safe Harbor regulations.

Results:

ANGELL clients also save time and money by turning some or all of their distribution processing activities over to PenChecks Trust. Additionally, PenChecks helps ANGELL’s plan sponsors meet their fiduciary responsibilities with respect to missing participants.