Page 255 - DCAC February 2024 Files

IRA Custodian Due Diligence

• The selection of an automatic IRA rollover custodian for di minimis accounts is a fiduciary action;
therefore, Plan committees should follow a prudent process and document the selection of the IRA
custodian.

• Innovest believes the following considerations should be evaluated for due diligence purposes:

– Financial stability of the custodian and underlying investment provider.

– Annual administrative/account fees and any other transaction fees.

– Investment vehicle and crediting rate for amounts rolled over. These are typically very
conservative interest-bearing accounts, such as a bank savings account or insurance company
fixed accounts.

• Additionally, we believe it is important to consider established, well-regarded providers, and have
solicited information from the following three providers:

– Empower Retirement

– Inspira Financial, formerly Millenium Trust Company

– Schwab Trust Bank

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