Ceridian Adds Roth 401(k) Recordkeeping Services To Its Retirement Plan Administration Offerings
MINNEAPOLIS (March 22, 2006) – Ceridian (www.ceridian.com), a leader in human resources outsourcing management solutions, announced today that its Retirement Plan Services unit now provides recordkeeping services for new Roth 401(k) provisions.
The new provisions allow 401(k) plan participants to defer a portion of their salary to the plan on an after-tax basis. While the employee is taxed on the Roth 401(k) contribution in the year the contribution is made, the Roth 401(k) contribution grows tax-free in the plan and together with earnings will be tax-free when distributed to the participant as a qualified distribution. To withdraw the earnings tax-free, the Roth contribution must remain in the plan for at least five years and the participant must have attained age 59½ (death and disability also qualify).
Ceridian provides complete administration and compliance services of Roth 401(k) accounts. Working with premier trustee and custody partners, Ceridian provides resources to help a company manage its fiduciary responsibilities. And Ceridian manages separate recordkeeping accounts for the Roth 401(k) and traditional 401(k)s. Ceridian’s Roth 401(k) service is available now for plan years beginning on or after January 1, 2006.
Ceridian is a leading provider of retirement plan services. Ceridian Retirement Plan Services offers 401(k), Roth 401(k), profit sharing, money purchase, defined benefit plans, recordkeeping, retiree billing services, QDRO administration and actuarial/ administrative services. Extended benefits services offered by Ceridian include health & welfare, open enrollment, FSA, COBRA and HIPAA administration, EAP and work-life services, tuition reimbursement, and commuter services.
Source: Ceridian
