February 19, 2021

Encourage clients to take advantage of RecordkeeperDirect’s improved e-distribution process

Plan participants, sponsors, TPAs and financial professionals alike can all benefit from RecordkeeperDirect®’s electronic withdrawal process, from initiating requests for most types of withdrawals on the participant website, through the customizable approval workflow, to the payout with a wide range of options.

With a secure digital process, smart interfaces, real-time approval notifications and automatic status updates, e-distributions offer added convenience, efficiency and safety. Among the benefits:

• Withdrawal approval workflow can be tailored (one-or two-step approval by sponsor, TPA or both in either order). This flexibility allows you to route all requests through your firm for review, and the sponsor can establish you as the sole approver if you’re providing 3(16) services.
• Digital interface helps reduce incomplete/incorrect requests and corrections.
• No finding, scanning, faxing and storage of paper forms required.
• Automatic approval requests for sponsors/TPAs and status updates for participants.
• Efficient electronic process helps reduce confusion, questions and problems.
• Personal information is protected by stringent online security with no paper forms to be lost or stolen.

In addition, recent improvements and options make e-distributions more useful and flexible than ever, including:

• Electronic payments (ACH) can be sent directly to a bank account.
• American Funds IRAs can be established entirely online for rollovers.
• Approval notifications sent in real time.
• Expedited delivery available for an additional fee (deducted from distribution proceeds).
• Split distributions (e.g., part cash, part rollover) can be arranged in a single request.

If a client is unable to utilize our e-distribution service and chooses to submit a paper distribution form, please note that our ACH distribution requirements have changed. Updated forms require that participants consent to a new bank account validation service. As such, in order to avoid delays and/or disruption, please ensure you always access the current version of each distribution form in the Forms section of the RecordkeeperDirect TPA website.

To learn more about the benefits of online distributions, call us at (800) 421-6019.