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Prepared for Springfield R-XII School District
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c. Loans.
When a participant wants to apply for a loan at the eligible plan vendor of their choice,
they request a loan eligibility certificate from Retirement Manager as their first step. The
eligibility certificate is then presented to the vendor approving the distribution.
When a participant requests a loan eligibility certificate, Retirement Manager validates
against plan rules entered into Retirement Manager. These include:
Does the plan allow loans?
Does the plan limit the number of loan in a 12-month period?
Does the distribution require plan sponsor signature (will only be required if the plan
sponsor elects)?
Next, the maximum loan amount available is calculated, based on the $50,000 maximum
loan cap and/or the 50% of account balance. Retirement Manager can also administer
the 403(b) $10,000 Floor Loan Rule. This provides plan level validation for loan requests.
With loans, the employee relationship with the current vendor will not change. Loan
requests are processed using administrative procedures for the current vendor. A link to
plan vendors will be provided on the Retirement Manager website.
d. Contract exchanges.
When a participant wants to withdraw a portion or all of their account balance and
move it to an eligible plan vendor of their choice, they request an in-service exchange
eligibility certificate from Retirement Manager as their first step. The eligibility
certificate is then presented to the vendor approving the distribution. With an in
service exchange the employee relationship with the current vendor will not change.
The in service exchange requests are processed using administrative procedures for
the current vendor. A link to plan vendors will be provided on the Retirement Manager
Website.
Please specifically identify any costs associated with these services in the Fees and
Expenses portion of your response.
Any fees would be billed based on the Retirement Manager Agreement.
6. Describe your capabilities for the following:
a. Annual addition limitations 415(c).
b. Monitoring of elective deferrals (402(g)); 15 year and age 50 catch-up).
c. 401(a)(17) limit on compensation.
Please specifically identify any costs associated with these services in the Fees and
Expenses portion of your response.
Retirement Manager automatically monitors basic Internal Revenue Code ("IRC")
contribution limits, age-based catch up, special catch-up limits when applicable to identify