Matrix Trust Company FAQ

Your account is a Safe Harbor IRA where Matrix Trust Company is the custodian. A Safe Harbor IRA is an account established when an employer-sponsored retirement plan administrator elects to send funds based on their plan’s provision regarding balances less than $5,000.

Generally this provision is exercised when:

• The employer-sponsored retirement plan administrator is unable or unwilling to maintain a small residual balance for a former employee;
• The employer-sponsored retirement plan administrator is unable to contact a plan participant;
• The plan participant is non-responsive;

A Safe Harbor IRA may also be established for all plan participants when a plan terminates.

The proceeds sent to your Matrix Trust Company Safe Harbor IRA are held in an FDIC-insurance, interest bearing deposit account at J.P. Morgan Chase or a like institution.

If the employer-sponsored retirement plan you were previously enrolled in included a Roth component (such as a Roth 401(k) or Roth 403(b)), you may have both a Traditional IRA and a Roth IRA at Matrix Trust Company. Unlike traditional retirement plan contributions, Roth funds are after-tax contributions. Therefore, they must be separated from the traditional funds when being rolled over to a Safe Harbor IRA.

This account was originally established for you by a third party. In order for us to accept any instruction from you now—including instructions to close the account—we must complete the process of legally opening it. You will need to complete an application, a customer identification form, and provide documentation to verify your identity. By completing and signing these documents you are acknowledging the terms of the IRA, and recognizing Matrix Trust as the custodian of the account. We must have these steps completed before taking instruction from you on your IRA.

You can complete this process online or with our IRA Customer Care Team at: IRA Log-In

You may take a distribution from your account at any time. You can transfer your funds in a Traditional IRA, tax-free, to another Traditional IRA account or roll it into your current employer’s retirement plan if allowed. Roth IRAs are not eligible to be rolled into another Roth 401(k) or Roth 403(b) account. Funds from a Roth account may only be distribution or transferred to another Roth IRA. You may take also take a taxable distributions (penalties may apply).

To take a distribution from your IRA account contact our IRA Customer Care at: IRA Log-In

If the funds in this account are distributed to you directly or deposited into a bank account in your name, the amount will be reported as taxable income on IRS Form 1099-R, which will be mailed at the time of your distribution. Include this form with your other tax documents when you file after the end of the year. If you choose to have state and/or federal income tax withheld from your distribution, this will also be reported on this form.

Accounts have a $35 annual administration fee, which is collected when your account is set-up and every year on the anniversary date. If your account is over $10,000 there is no annual fee. In addition to the annual fee, a basis point fee will also apply as well as distribution fees.

For an outline of all of the fees associated with your account, please review our Fee Disclosure