TD Ameritrade launches package of retirement plan services for RIAs

Bundles 401(k) plan services, record keeping and third-party administration for advisers of plan sponsors

Jan 31, 2014 @ 1:16 pm

By Joyce Hanson

TD Ameritrade Holding Corp. has plunged into the retirement business for registered investment advisers, announcing Thursday it is bundling a package of services into a single program for RIAs who serve plan sponsors.

Called the TD Ameritrade Retirement Plan, the new program was built with feedback from registered investment advisers who said they wanted a single point of contact from a custodian that would assemble service providers and help advisers comply with regulations, according to a statement from the company.

The new turnkey program was created by the parent company's TD Ameritrade Trust Co. subsidiary, which provides custody and record keeping services, to help advisers simplify the process of setting up a retirement plan business, the release said.

The TD Ameritrade Retirement Plan offers 401(k) services such as record keeping, custody and third-party administration from the trust company along with access to thousands of nonproprietary exchange-traded funds and mutual funds, according to the statement.

Related: How to break into the 401(k) plan adviser scene

RIAs will get a step-by-step guide on how to set up a retirement plan business, approach prospects and serve clients, the statement said. The program includes account management tools for advisers, enrollment and education materials for employers and IRA rollover assistance for plan participants.

In launching the new program, TD Ameritrade officials pointed to a TD Ameritrade Institutional survey showing that eight out of 10 advisers predict RIAs will expand their share of the enormous U.S. retirement plan market as it gets even bigger. Americans already have saved about $5.6 trillion in 401(k) and other employer-sponsored defined-contribution retirement plans, according to an Investment Company Institute report this month.

TD Ameritrade is not the first custodian to market with such a retirement package for RIAs. Back in April 2010, Fidelity Investments unveiled its own bundled 401(k) platform for distribution through RIAs.

The Fidelity Advisor 401(k) platform bundles record keeping, investments, participant education and fiduciary support materials, according to a statement. It was built on the existing Fidelity Advisor 401(k) platform distributed through broker-dealers.

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