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What You Have to Know
- Ascensus will tackle Vanguard’s particular person 401(ok) plan retirement plan recordkeeping enterprise, together with its a number of participant SEP and SIMPLE IRA plans.
- Plan members will retain entry to a various lineup of Vanguard mutual funds through the Ascensus platform.
- The information displays important consolidation within the aggressive and margin-compressed retirement plan recordkeeping enterprise.
Ascensus introduced Tuesday afternoon its settlement to accumulate Vanguard’s particular person 401(ok) retirement plan recordkeeping enterprise, together with its multiple-participant SEP and SIMPLE IRA plan enterprise.
As soon as finalized, Ascensus will assume recordkeeping and consumer servicing for Vanguard’s particular person retirement plan shoppers, boosting its variety of plans underneath administration to just about 280,000. Ascensus will present custodial and trustee companies, recordkeeping, consumer servicing, transaction processing, tax reporting and different companies to former Vanguard shoppers.
Plan members will retain entry to a various lineup of Vanguard mutual funds through the Ascensus platform, in line with the announcement. Put up-transaction, Vanguard will proceed to supply a one-person SEP IRA answer for small-business house owners who don’t make use of others, and the settlement doesn’t embody Vanguard’s different retirement choices.
As famous on the IRS web site, a person 401(ok) plan, or Solo 401(ok), is actually the identical as a standard 401(ok) plan, but it surely covers a enterprise proprietor with no workers — or that particular person and his or her partner. These plans in any other case have the identical guidelines and necessities as some other 401(ok) plan.
The announcement cites Ascensus’ greater than 4 a long time of trade expertise, noting the agency is “deeply dedicated to serving the distinctive wants of small enterprise retirement plans.” The transaction is predicted to shut within the third quarter of 2024, and the acquired enterprise will function as a part of the Ascensus Retirement line of enterprise.
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