| If
I elect to open a Schwab PCRA account, what is the process
of depositing ongoing contributions? |
(All
Trinity Health)
Your ongoing Retirement Savings Plan contributions must
first be contributed to the Diversified fund
options you have elected. In order to have these funds
transferred to your PCRA account you must contact Diversified
via the toll free number at 1-800-394-5240, or the website
at https://retirementprogram.trinity-health.org,
and transfer your funds from Diversified, to the Schwab
money market account. You will then need to contact
Schwab via their toll free number at 888-393-7272 or
website at www.schwab.com
in order to have your funds transferred from the Schwab
money market account to a mutual fund offered through
the Schwab PCRA account. These steps are summarized
below:
Step 1: Contributions are transferred to Diversified
via payroll deductions.
Step 2: Associate calls Diversified to transfer
the funds to Schwab Money Market (3 day settlement).
Step 3: Associate calls Schwab and requests that
the funds be moved from the Money Market to the specific
funds (i.e. XYZ Fund, etc.)
An initial investment of $1,000 is required to establish
the Schwab PCRA account. The subsequent minimum transfer
amounts from the Diversified account to the Schwab PCRA
is $250 in total.
Some mutual funds have initial minimum investment requirements.
|
| If
I have established a Schwab PCRA account, why do my contributions
need to go to Diversified before being transferred to
my Schwab account? |
(All
Trinity Health)
Since Diversified is the service provider for the Trinity
Health 403(b)/401(k) Retirement Savings Plan, all payroll deduction
contributions must first flow through Diversified. Diversified
needs all the plan contribution information for IRS reporting
and testing purposes and to be able to incorporate this
information on associates' quarterly statements. Also,
from an administrative perspective, there is currently
not a mechanism whereby associate contributions can be
sent from the payroll system directly to both Diversified
and the Schwab PCRA account.
The Schwab account is an option which is made available
for the convenience of associates who feel comfortable
with mutual fund investing and who want additional flexibility
to invest in various fund options. For the vast majority
of associates the fourteen (14) core fund options offered
by the Trinity Health 403(b)/401(k) Retirement Savings Plan will provide the level
of diversification desired. |
| How
often can I transfer from my Diversified account to my
Schwab PCRA account? |
You
can transfer your funds as often as you like, however,
some of the mutual fund companies require a minimum initial
contribution to start investing in their account. Contact
Schwab directly at 1-888-393-7272 to determine if a fund
option you are interested in requires a minimum initial
deposit.
Once the initial investment is made, the minimum for
subsequent investments is $250. |
| Can I take
a loan out directly from my Schwab account? |
No, if you want
to borrow funds from your Schwab account, they must be
transferred back to your Diversified account. |
| If a participant currently has an account with Charles Schwab, will the $50 fee for setting up a Personal Choice Retirement Account be waived? |
No, the $50 will not be waived. The Schwab Personal Choice Retirement Account with Diversified is part of the Trinity Health 403(b)/401(k) Retirement Savings Plan and has no relation to individual accounts that are through Schwab. The fee is not a set up fee. It is an annual fee charged to the Diversified account for maintaining the Schwab PCRA account. The fee is charged in January subsequent to the plan year-end, i.e. the 2010 fee will be charged in January 2011. The $50 fee is a Diversified fee that covers the administration and record-keeping of the Schwab account. |
| Is the Schwab
personal choice account available under the After-tax
Savings Plan? |
Yes. |
