Schwab Corporate Services said it has introduced an individual retirement account that lets plan sponsors roll over assets when an employee retires without incurring distribution or setup fees.
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Federal regulations that are to take effect March 28 require tax-qualified plans with force-out provisions to roll over instead of directly paying out retirement distributions between $1,000 and $5,000 to an IRA, the brokerage company said on Thursday. Its CSTC Rollover IRA helps plan sponsors comply with the regulations by automatically establishing and funding an IRA for each affected participant.
Schwab had client assets in employer-sponsored retirement plans of $131 billion at Dec. 31.
