TPA FAQs-old

For more information in addition to the FAQs below, please contact IRA Services at 1-866-401-5272 or email us at [email protected].

What is AutoRollovers?

AutoRollovers is a service BPAS, a wholly owned subsidiary of Community Bank System, Inc. (NYSE:CBU). We have been providing IRA outsourcing solutions to banks, trust companies and credit unions since 1997. We developed our AutoRollovers solution for mandatory distributions in early 2005. We currently handle IRA rollovers for thousands of Plan Sponsors in partnership with third party administrators across the U.S.

Why should we partner with AutoRollovers?

Besides offering TPAs an initial $10* for each IRA transferred to AutoRollovers, using our online reporting process, AutoRollovers provides an additional $1.25* per month for as long as the IRA remains with AutoRollovers.  We provide a no cost account set-up process that has been streamlined for ease of use and client satisfaction. TPAs rave about our process, and Plan Sponsors enjoy not having to complete paperwork for every forced distribution processed.

TPAs compensated as long as IRAs remains above $200.

Additional benefits include:

  • One Service Agreement per plan. Each Rollover does not require Fiduciary signature; No set-up fees;
  • Web Access to monitor the rollover process for reported distributions;
  • Superior product for Participants:
    • Eleven (11) mutual fund offerings (in addition to the Default Investment) to diversify account, including four lifecycle funds;
    • 24/7 Access to automated account information via Voice Response Unit or Web. Live customer service is available 8:00 am – 8:00 pm EST.
Are there any costs involved in working with AutoRollovers?

There are no set-up fees associated with using AutoRollovers. IRA accounts will be charged the following monthly fees. There will also be a $75 withdrawal fee and other fees as they may apply. These fees are considered reasonable for comparable IRA plans.

Account Balance: Monthly Fee
Less than $5,000: $5.67
$5,000-$10,000: $4.50
$10,000.01-$15,000: $2.50
Greater than $15,000: $1.00
Why do we see a warning message when we open the Plan Sponsor Agreement returned to us by AutoRollovers?

The error message “At least one signature has problems” is a result of the signature certificate being from an entity that you have not specifically added to your “trusted identities.”  The following document will explain this further and offers step-by-step instructions to deal with it.

Electronic Signature Warning

How can we, as the TPA, be compensated for each rollover?

AutoRollovers offers compensation to TPAs for providing us with the account opening information utilizing our secure online reporting system, CensusPro™. This electronic data remission eliminates any manual entry on our part involved in setting up each IRA account.

When are TPA payments made?

TPAs generally receive payment for their services the second week of each month for the previous month.

Why must we use CensusPro™ to report rollovers?

Reporting using CensusPro™ to remit IRA accountholder information eliminates manual data entry for account opening. Without this cost saving measure, AutoRollovers would not be able to offer compensation to TPAs.

How can TPAs check the status of IRA accounts remitted to AutoRollovers?

TPAs may log in to the AutoRollovers website and check the status of any accounts remitted to AutoRollovers.  Complete instructions are available, here. If you have misplaced your credentials, you may e-mail [email protected].

What happens if the rollover remains unclaimed?

Each year, AutoRollovers submits its database to a commercial search firm, in an attempt to reconnect accountholders with their IRA accounts. Attempts are made annually, until such time as the account becomes subject to state abandoned property laws.

Why should Plan Sponsors want to force distribution on terminated participants?

There are a number of reasons for a Plan Sponsor to rid the Plan of small account balances of former employees, including:

  • Prevent the need to file as a large plan, avoiding expense of an audit ;
  • Accelerate access to forfeiture dollars by forcing distribution, there is no need to wait for the occurrence of 5 breaks in service before forfeiting;
  • Eliminate disclosure/communication requirements with former employees;
  • Minimize lost participants in the case of plan termination;
  • Reduce administrative costs, for plans paying administrative expenses based on the number of Participants in the Plan.
What about amounts greater than $5,000?
  • For terminating Defined Contribution Plans, the DOL has advised that plan fiduciaries can transfer individual retirement plan assets to individual retirement accounts (IRAs) if, after taking all prescribed steps to locate the owner, the owner cannot be found.
  • These prescribed steps include using certified mail, checking other employer plans and employer records, checking with a designated plan beneficiary for the individual’s whereabouts.  In addition, fiduciaries should make reasonable use of free electronic search tools.
  • For more information, check out the Department of Labor Field Assistance Bulletin, FAB 2014-01.