Individual Directed Accounts

[Guest Alison Hetrick]

In reading a response to another question, Carol Ringwald mentioned that having IDA's in a plan can cause headaches with 5500 filings.

We have several daily plans that allow some employees to have a PCRA (Personal Choice Retirement Account or IDA)while everyone else is participant directed. This is the first year we have done this. What kind of problems will we encounter with the 5500's for these plans?

[Guest carolneill]

I know we have several plans like this and the nightmare is getting all the statements so you have all the information for the 5500.

[Guest]

At the end of the year, you will need to get information from the IDA accounts for each individual so you can accumulate that data for the 5500. There are some brokerage firms that are trying to address this issue and provide a download of the information so you can upload the data automatically into your recordkeeping system, which in your case, I believe is Quantech. Quantech would need to be able to take in the file so that you can then report the data directly into the 5500.

I would recommend that you talk with the provider of the IDA accounts and determine what types of electronic files they can provide and then whether or not you can bring that data directly into Quantech. You may be able to get a satisfactory answer now so that you won't be behind the eightball next year when getting the data together for the 5500.

You may also need to consider using a different IDA solution if you cannot get the appropriate downloads from them.

Hope this helps.

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Carol J. Ringwald

President

CJR Consulting Group, Inc.