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and emails. An additional reactive enforcement process is designed to be a second IRC
limits validation to prevent excess deferrals from occurring. Each time a remittance file is
received, an IRC limits projection is completed. If an over contribution is detected, a
contribution reduction or contribution stop will be included on the contribution change
feedback file for the corresponding payroll date. There is also a reactive process to ensure
that if an excess contribution was included in the next remittance file, Retirement Manager
will contact the plan administrator regarding the over contribution amount.
10.Does your Firm’s system track cumulative contributions? Is the data available upon
IRS audit?
VALIC can provide coordinated suspension of contributions due to a hardship withdrawal or
emergency distribution.
Retirement Manager provides a suite of online plan reports to assist plan sponsors in
administering its retirement plans. Plan reports can be generated by plan type for specific
date ranges and can be exported to Excel. Ad-hoc reporting is also supported. Reporting is
available at the aggregate vendor, selected vendor and participant levels. Reports can be
generated for any historic period with the date range based on the selected start and end
dates. Retirement Manager reports are available based on the administration services
selected, examples of popular plan reports include:
-Participant contribution report
11.For individuals who have contributed near their maximum limit, can you conduct a
final recalculation at the end of the year? If so, can this be conducted on a plan-wide
basis and reported to the District?
Yes. Based on final year-end contribution information, VALIC system recalculates and
identifies excesses in the first quarter so that any necessary corrective action may be taken.
Our financial advisors receive weekly updates from the system on both potential and actual
excesses allowing them to help their clients maximize their retirement contributions.
Retirement Manager uses data provided and approved by the plan sponsor to
determine the maximum allowable amounts. It also monitors the amount(s)
contributed to each plan and produces online reporting across all plan types and
vendors. Retirement Manager limits enforcement is designed to prevent participating
employee’s contributions in excess of the available monitored IRC contribution limits
for which each employee is eligible from being deposited in the employee’s account in
the retirement plan. With Retirement Manager Limits Monitoring in place, excesses
should be greatly reduced.
In addition, Retirement Manager provides an enforcement module designed to prevent
excess deferrals through a proactive process that systematically reduces and/or stops
excess deferrals from occurring. The process includes plan sponsor and participant
notifications through reports and emails. An additional reactive enforcement process is
designed to be a second IRC limits validation to prevent excess deferrals from occurring.