Hey, did you hear the one about the guy who left his job and forgot he had $4,800 in his 401k plan?
Okay…it sounds ridiculous. Who forgets they have that kind of money? Well, believe it or not, it happens pretty often. Just ask the financial officers at hundreds of large or medium-sized companies. Many smaller businesses, too. They’re the ones stuck overseeing these accounts for employees.
Now FMi has developed a solution that helps take the burden of managing ‘forgotten 401k’ plans with balances of $5,000 or less off the backs of businesses, and provides benefits for those to whom they belong, as well.
“Very often when people are fired or laid off — or just switch jobs — they have so much to deal with they can overlook their 401k account, and simply leave it behind,” says Peter Macaluso, Vice President of FMi. “But it’s not so simple for those with the responsibility of overseeing them. That’s why we created the new ‘FMi IRA’ for ‘left-behind’ 401k plans worth $5,000 or less. It lets companies remove these abandoned plans from their books, and stop paying fees to maintain them.”
With the FMi IRA, these 401k plans can now be rolled out of a company’s retirement plan quickly and easily. FMI handles the entire automatic rollover process, allowing corporate financial officers to uphold their fudiciary responsibilities while reducing overall plan costs. No more fees. No more involvement or connection to the 401k plan’s owner. Just as rewarding, FMi doesn’t charge companies for this service, and has no volume restrictions.
Once the rollover process is completed, FMi places the funds in a money-market or interest-bearing, FDIC-insured account, then seeks out the owner. “If we can’t locate them with conventional methods, we track them down through the social security system,” states Macaluso. “Once we make contact, we provide the owner with complete account information, encourage them to take control of their assets, and explain their options. Unlike their old company’s plan, which may have had restrictive rules, the new FMi IRA gives them the power to choose what to do with their account. Whatever they decide — from liquidating it to selecting an alternative investment option — we can make it happen.”
Other benefits to the plan owner include live customer service
and 24/7 online account access. “What they’ll like even more,”
he adds, “is it costs them only $35 a year to have FMi manage
this new IRA for them.”
According to Peter, there are other solutions available, but none that deliver the win-win scenario for both parties of FMI’s new IRA. He further notes that any company with a 401k or profit-sharing plan can utilize the FMi IRA for “abandoned” 401s at or under $5,000. Additionally, any individual with an IRA from another institution can also capitalize on this new plan, as well.
“At FMi, we have a wealth of experience running 401k plans for companies of all sizes,” says Macaluso. “The new FMi IRA is the culmination of decades in the business, and is the first that is so mutually beneficial to businesses and individuals.”
For additional information on the new FMi IRA, call 877-858-1411, or visit www.totalIRA.com/FMi.
Tags: 401K, FMi Retirement Services, forgotten 401k plans, fudiciary, IRA, profit-sharing plan, total ira