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IRAs have long served as essential tools to help reach retirement goals. However, as savers’ needs become more diverse and complex, legacy IRA programs could fall short. By leveraging advanced technology, IRALOGIX helps financial institutions deliver IRA programs that not only help meet the evolving demands of modern savers but also change the future of retirement saving.

The Future of IRAs

Today’s retirement planning industry is more dynamic than ever, with investors seeking solutions that offer convenience, flexibility, transparency, and personalized support. This evolution is leading to the development of innovative IRA features that transform IRAs from basic savings vehicles into customized retirement planning tools.

Technology-driven platforms are at the forefront of this transformation. For example, SaaS-based solutions enable financial institutions to work with platform providers to offer an innovative IRA program without having to modify existing systems architecture. IRALOGIX is revolutionizing the retirement industry with its proprietary cloud-native recordkeeping platform that offers complete IRA administration and the unique, flexible features that are maximizing the role of IRAs in a retirement saver’s financial journey.

Here are some of the features that make IRALOGIX a collaborator for taking your IRA program into the future.

Competitive Investments for Everyone

IRALOGIX provides financial institutions complete control over the investment line-up in their IRA program using institutional shares with no minimums. This flexible structure helps to ensure that all savers, regardless of the size of their account balance, can access competitive investment options compared to the typical retail alternatives​.

With no minimum balance requirements, financial institutions can say “yes” to any size IRA, meeting a huge gap in the industry for many savers. Financial institutions can also support retirement plan sponsors by providing an automatic rollover IRA program with the financial organization’s choice of a default investment. When individuals claim their IRAs, they can reallocate to the IRA program’s competitive options that are carefully screened by the financial institution and continue saving for retirement.

Customized Interfaces to Promote Your Brand

A fully customizable, white-label platform allows each financial institution to promote its brand while offering an innovative IRA program, providing a competitive edge in the marketplace​. Accountholders can access the IRA platform from their financial institution’s website with seamless integration.

Flexible Advice Solutions

IRALOGIX works with Morningstar Investment Management, LLC and Envestnet to offer digital advice engines that allow financial institutions to help ensure that investors across all risk profiles, ages and net worth can receive tailored savings guidance in a managed account.

Through IRALOGIX’s relationship with Morningstar Retirement, financial institutions can also offer a managed account engine, Morningstar® Retirement Manager℠, to provide even more automated support. This feature helps put savers on the path to meeting their retirement goals with holistic, dynamic and easily accessible digital advice. Using the information an individual provides, this service can

• • Recommend a personalized investment portfolio,
  • Monitor and adjust allocations as needed,
  • Estimate the amount of savings an individual will need in retirement,
  • Provide regular progress reports, and
  • Recommend changes to contributions, retirement age, and Social Security strategies to help the individual reach their goals.

These integrated features help make it easier for financial institutions to offer comprehensive advice services to anyone, helping individuals reach their retirement goals and helping to enhance portfolio performance.

Automated Features

IRALOGIX automates other critical aspects of retirement saving and income planning:

• • Savers can set up recurring contributions, helping to ensure growth of their retirement savings and dollar-cost averaging.
  • IRALOGIX simplifies and automates the Required Minimum Distribution (RMD) process, helping ensure compliance and reducing administrative burdens.
  • Retirees can receive a personalized withdrawal strategy and automate monthly payments to help ensure a steady income stream throughout their retirement​.

IRALOGIX’s cloud-native technology provides these features and more, with paperless enrollment and transactions on mobile-friendly portals.

Grow Your IRA Footprint with IRALOGIX

The future of IRAs is more than promising, driven by innovative features that allow financial institutions to help meet the diverse needs of savers and retirees. IRALOGIX is leading this change with an IRA platform that leverages advanced technology to ensure that flexible and personalized features are available for any size account balance.

Financial institutions looking to enhance their IRA programs, while offloading administration and compliance burdens, can collaborate with IRALOGIX to make this happen. Contact us to learn how we can support you in meeting the evolving demands of retirement savers.

©2024 Morningstar Investment Management LLC. All rights reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Retirement offers research- and technology-driven products and services to individuals, workplace retirement plans, and other industry players. Associated advisory services are provided by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc.

Morningstar® Retirement Manager℠ is intended for citizens or legal residents of the United States. Investment advice generated by Morningstar Retirement Manager is based on information provided and limited to the investment options available in the defined contribution plan. Projections and other information regarding the likelihood of various retirement income and/or investment outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of future results. Results may vary with each use and over time.

All investments involve risk, including the loss of principal. There can be no assurance that any financial strategy will be successful. There is no guarantee that the results of their advice, recommendations or objectives of a strategy will be achieved.

The financial services industry is fiercely competitive, which means customer retention isn’t just desirable—it’s essential. With IRALOGIX’s cloud-native solutions, institutions can offer strategic IRA features that transform simple transactions into long-term relationships, allowing clients to engage with a trusted partner as they navigate their financial journeys.

Transform Customer Loyalty

Well-crafted IRA solutions enable financial institutions to deepen customer loyalty by recognizing and addressing the unique needs of each client. By leveraging technology and tailored features, strategic IRA offerings elevate customer satisfaction levels and foster deeper connections.

Step 1. Decipher Customer Needs and Preferences

Financial institutions face growing pressure to offer new features and conveniences to remain competitive. While Traditional, Roth, and SIMPLE IRAs remain fundamental retirement saving tools, the demand for enhanced account features has evolved as modern technology revolutionizes the IRA industry.

• Consumers expect to access their financial accounts on mobile-friendly portals, with real-time updates and seamless transactions.
• Job changers and retirees are looking for rollover IRAs features that compare to employer-sponsored plans, including model portfolios, managed accounts, and institutional share class investments.
• Younger investors may be seeking higher risk investments with the potential for higher returns and value personalized recommendations on savings rates.
• Baby Boomers often prioritize low-risk, income-generating options and draw-down strategies.
• Competitive fee structures make products more attractive, while flexible contribution methods and systematic withdrawals add convenience.

Customizing IRA solutions to address diverse client needs is mission-critical. Conducting surveys and focus groups can reveal these nuanced preferences, providing invaluable insights for tailoring your offerings.

Step 2. Implement New IRA Features

Offering a multi-featured IRA program requires a large investment for financial institutions. However, industry partnerships can provide cost-effective solutions, allowing financial institutions to offer desired features without the heavy investment in building and maintaining proprietary technology or managing compliance and regulatory updates internally. By partnering with specialized providers, financial institutions can streamline administrative processes, reduce operational burdens, and deliver a more comprehensive and efficient IRA experience. This approach frees institutions to focus on their core strengths while leveraging external expertise for the back-end complexities of IRA administration.

Step 3. Boost Awareness of Strategic IRA Solutions

Promotion is crucial to the success of any strategic offering. Using multiple channels like webinars, newsletters, educational initiatives, and social media can significantly increase the visibility of your solutions. For example, a well-executed social media campaign that highlights the benefits of your innovative IRA features can reach thousands, if not millions, of potential customers. A webinar can provide valuable industry insights to advisors and explain how your IRA features can benefit their clients.

Staff training is another vital component of your marketing efforts. Well-informed employees who can effectively communicate the advantages of various IRA products or features foster a deeper sense of trust and loyalty with your customers. They can answer questions and personalize the benefit of each feature to the customer, enhancing customer satisfaction—and take-up rate of new features.

The Value of Strategic IRA Offerings

Adding strategic IRA offerings can be a pivotal growth strategy for financial institutions. When customers understand the benefits of consolidating their retirement assets in an IRA that offers the features they’re looking for, you can deepen relationships with existing clients, acquire new clients, increase assets, and differentiate your brand in a crowded market.

Leveraging specialized providers and technology solutions to implement new features can reduce internal labor and development costs to administer IRAs and build or maintain systems. In addition, the right partnership will provide streamlined processes, compliance support, account holder support, and an advanced platform to simplify the customer experience and optimize outcomes.

Institutions that fail to innovate risk losing customers to competitors and missing key opportunities, like rollovers.

Embrace Innovation for Lasting Loyalty

In today’s competitive IRA market, financial institutions must stay ahead of evolving customer needs. With increasing demand for personalized services and ever-changing compliance requirements, now is the time to evaluate your IRA program.

IRALOGIX can help you enhance your IRA program and customer retention. With our cloud-native platform, compliance expertise, and strategic IRA features, we make it easy for institutions to offer cutting-edge technology solutions, streamline administrative processes, and stay ahead of consumer expectations in the rapidly changing IRA market.

Enhance your customer retention strategy with strategic IRA solutions designed to meet today’s challenges. Contact IRALOGIX  to explore how we can help streamline your offerings and drive long-term loyalty.

Advances in technology and innovative IRA solutions, such as those offered by IRALOGIX, provide financial advisors with a significant opportunity: help more clients simplify and optimize their retirement portfolios with IRA rollovers. IRALOGIX’s proprietary, cloud-native solution makes consolidating and managing retirement accounts easier, more efficient, and cost-effective for both advisors and investors.

The Strategic Opportunity

Individual Retirement Accounts (IRAs) are essential tools for effective retirement planning. They can be used to accumulate tax-deferred and tax-free wealth. They also facilitate tax-free consolidation of retirement accounts, enhance investment options, and help clients better manage retirement income goals.

But many retirement savers struggle with multiple, fragmented retirement accounts, which often creates confusion and inefficiencies. The perception that consolidating funds in an IRA is too complex or costly prevents job changers and retirees from taking proactive steps toward a more streamlined financial future. Depending on account balance, many savers struggle to find the right assistance. The solution for advisors who want to help—and increase their share of the growing IRA market—lies in a straightforward yet transformative IRA rollover strategy.

Unlock the Potential

The key to a transformative IRA strategy is unlocking a range of opportunities by partnering with an IRA program that allows you to retain your clients and AUM/AMA and offer a tiered business model. Consider how many more clients you could say “yes” to with an IRA program that enables you to offer an IRA with no minimum threshold, low-cost institutional share class investments, and a digital advice engine. With the flexibility to offer an IRA rollover to any prospect with any size account balance, without adding more hours to the workday or taking time away from servicing your wealth management clients, you can open new avenues for client engagement and revenue growth. Clients benefit from each level of your services depending on their needs.

1. Avoid Common Rollover Pitfalls

Despite the advantages, rollovers can present challenges if not executed properly. Common pitfalls include premature cash-outs, misunderstanding tax implications, missing critical deadlines, and high IRA fees. Advisors can easily assist clients with the IRA search and the rollover process by offering an IRA program that allows account holders to roll over their assets and manage their IRAs through an easy-to-use, paperless platform with low cost investments.

2. Expand Investment Support Opportunities

Unlike the often-restricted choices available in employer-sponsored plans, like single fund family offerings, IRAs should offer a diverse range of investments and investment providers. This allows advisors to use IRAs to craft tailored investment portfolios for wealth management clients as well as model portfolios or managed accounts that can be used by many clients.

Modern technology platforms enhance this capability, providing tools that enable advisors to manage investment portfolios efficiently. Digital solutions that automate investment management enable advisors to scale their services while still empowering low-touch clients with personalized investment insights.

3. Maximize Tax Efficiency

IRAs also present opportunities for strategic retirement income planning. Unlike 401(k) plans, IRAs offer greater flexibility in managing Required Minimum Distributions (RMDs) and converting pre-tax savings into tax-free income for retirees and their heirs. By strategically timing rollovers, conversions, charitable giving, and withdrawals, advisors can help clients minimize tax burdens, preserve wealth, and enhance long-term returns.

Mastering the Art of IRA Rollovers

A successful IRA rollover strategy is more than just helping retirement savers move money; it’s about providing a comprehensive service that enhances their financial well-being and strengthens your firm’s position in the market.

• Select the Right IRA Platform: Look for an IRA platform that offers a variety of investment selection and management features so you can expand your IRA rollover prospects without having to modify your advisory services business model.
• Select a Favorable Fee Structure: IRA fee structures are a critical component of determining whether a rollover is in a saver’s best interests, depending on their particular needs. Consider an IRA program with low-cost investments comparable to those typically available in a retirement plan so IRA fees don’t become a deal-breaker.
• Leverage your Expertise: Enhance client satisfaction and trust by positioning your services as an indispensable resource for navigating rollovers, investments, and tax-planning. As workers and retirees seek clarity and control over their retirement savings, advisors are uniquely positioned to guide them through this transition.

Empower Your Clients, Grow Your Business

Partnering with a specialized IRA service provider, like IRALOGIX, allows you to access an IRA program on an advanced digital platform that provides the investments, fees and features retirement savers need, while enabling you to scale your business effectively. Our white-labeled platform allows firms to design and brand an IRA product that integrates with the firm’s existing systems architecture. We also provide full IRA administration, a streamlined enrollment process, access to strategic partnerships, compliance support, and customer care—all designed to enhance the client experience and optimize outcomes.

Unlock the potential of IRA rollovers to enhance and grow your revenue and service offerings. Contact IRALOGIX to learn more about how we can support you in delivering tailored rollover solutions that drive client success and business growth.

Determining when an investment professional is subject to a fiduciary standard of care for making a rollover recommendation to a retirement saver is challenging. Multiple agencies’ overlapping compliance requirements and fiduciary definitions complicate this determination. And the Department of Labor’s (DOL’s) thwarted efforts to revise its fiduciary rules leaves a trail of pockmarked guidance.

Below is an overview of the rules for brokers and advisors working with retirement savers today. Under these rules, a one-time recommendation to roll over retirement plan assets to an IRA is not fiduciary advice that requires a prohibited transaction exemption (PTE). But brokers and registered advisors providing securities recommendations must still meet the SEC’s requirements. These requirements are similar to the DOL’s PTE conditions with a few significant differences.

…a one-time recommendation to roll over retirement plan assets to an IRA is not fiduciary advice that requires a prohibited transaction exemption (PTE). But brokers and registered advisors providing securities recommendations must still meet the SEC’s requirements.

The DOL

The DOL’s latest fiduciary rule and amendments to existing PTEs are now on hold while two Texas courts determine whether to vacate these rules. Consequently, investment professionals working with retirement savers should look to the 1975 five-part test under ERISA and the Internal Revenue Code to determine what is considered fiduciary investment advice. Under this test, an investment professional will be a fiduciary if they render advice for a fee or other compensation and meet all five elements:

1. Render advice to a plan or IRA as to the value of or the advisability of investing in securities or other property;

2. The advice is on a regular basis;

3. Advice is given pursuant to a mutual agreement, arrangement, or understanding; that

4. The advice will serve as a primary basis for investment decisions with respect to the plan or IRA assets; and that

5. The advice will be individualized based on the needs of the plan or IRA.

If an investment professional meets this test (or otherwise assumes fiduciary status), they cannot engage in prohibited transactions that create conflicts of interest for themselves or their financial institution/firm. If there is a conflict of interest, such as earning commissions or other compensation that is dependent on the advice provided, the fiduciary (and their firm) must operate under a PTE.

While several PTEs are still available (pending the Texas courts’ decisions), most ERISA/Code fiduciaries will look to PTE 2020-02. The PTE’s conditions should be familiar to firms and advisors because full compliance has been required since June 30, 2022. The conditions that must be met under PTE 2020-02 have not changed from the original version. However, the DOL’s re-interpretation of the “regular basis” prong of the five-part test in the preamble to PTE 2020-02 has been vacated for one-time rollover recommendations from an ERISA retirement plan to an IRA.

The preamble to PTE 2020-02 re-interpreted “regular basis” to include a rollover recommendation to a new client if there would be an ongoing advice relationship after the rollover. The DOL reasoned that the same provider is giving advice to the same person with respect to the same assets (or proceeds of those assets), pursuant to identical five-part tests. The DOL reiterated this position in Q&A 7 of its 2021 FAQs on how to meet PTE 2020-02. But, in 2023, a Florida court vacated Q&A 7 and the applicable parts of the preamble, ruling that advice to an investor on ERISA plan assets could not be combined with advice on IRA assets to meet the “regular basis” test.

…if there is not an existing advice relationship with an ERISA plan or participant, a recommendation to roll over plan assets to an IRA will not meet the regular basis prong of the 1975 test…

As a result, if there is not an existing advice relationship with an ERISA plan or participant, a recommendation to roll over plan assets to an IRA will not meet the regular basis prong of the 1975 test, even if an advice relationship will be established with the IRA. This type of rollover recommendation is not fiduciary advice under the DOL’s rules in effect today, so the conditions of PTE 2020-20 do not need to be met.

The SEC

The SEC adopted “Regulation Best Interest” (Reg. BI), effective June 30, 2020, to create greater consistency in standards of conduct for brokers and Registered Investment Advisors (RIAs). RIAs are subject to fiduciary standards under the Investment Advisers Act of 1940. Reg BI affirms this standard for RIAs and holds brokers to a “best interest” standard when making recommendations to retail customers regarding any securities-related transaction or strategy. These rules apply when making recommendations to retirement savers, including transfer and rollover recommendations.

Comparing PTE 2020-02 and Reg. BI Requirements

Investment professionals who are subject to the SEC’s requirements must satisfy both the SEC requirements and the conditions of PTE 2020-02 (or another PTE) if providing fiduciary investment advice under ERISA or the Code and receiving conflicted compensation. The SEC’s and DOL’s compliance requirements and standards of care are similar but not the same. Both require investment professionals to put the investor’s interests ahead of their own and to compare relevant factors for the existing and recommended accounts to determine that a rollover is in the retirement saver’s best interests. However, the SEC does not require brokers to claim fiduciary status nor disclose the rollover analysis to the customer.

Agency – Rule	SEC – Reg. BI	DOL – PTE 2020-02
Applicable to	Brokers recommending securities transactions to a retail customer, including a retirement investor	Investment professionals providing nondiscretionary fiduciary advice or a fiduciary rollover recommendation to a retirement investor for conflicted compensation
Fiduciary status	N/A, but must disclose capacity in which broker is acting in the Client Relationship Summary (CRS)	Advisor & firm must acknowledge fiduciary status under ERISA &/or the Code in writing to the investor
Standard of care	Act in the best interest of the customer at the time the recommendation is made, without placing the broker or broker-dealer’s interests ahead of the customer’s interests	Adhere to Impartial Conduct Standards – Provide prudent & loyal advice in the best interest of the retirement investor – Charge only reasonable compensation – Avoid misleading statements
Financial institution compliance	Follow written policies & procedures to ensure compliance with Reg. BI & identify & eliminate or mitigate & disclose conflicts of interest	– Follow written policies & procedures to ensure compliance with Impartial Conduct standards & to mitigate conflicts of interest – Conduct annual retrospective review, with a written report certified by a senior executive officer
Disclosures	Provide written disclosures of services, fees, material conflicts of interest & material limitations on the securities that may be recommended	Provide written disclosures of services, fees & material conflicts of interest
Rollover analysis	Analyze relevant factors to determine if a rollover is in the best interest of the customer; documentation recommended to prove compliance	Analyze relevant factors to determine if a rollover is in the best interest of the retirement investor; documentation & disclosure to retirement investor required

For more details, see the SEC’s Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Conflicts of Interest and the DOL’s PTE 2020-02 Improving Investment Advice for Workers & Retirees Frequently Asked Questions (except Q&A 7).

Investment professionals should work with their compliance staff to evaluate their business model and compensation structure to determine their compliance requirements under the SEC, the DOL, and any other governing agencies or state law.

[25-year Finance Executive of High-Growth Private and Public Tech Companies]

Pittsburgh, PA, September 10, 2024 – IRALOGIX, a leading retirement industry fintech provider, today announced the appointment of Keith Haas as Chief Financial Officer. Haas assumed his new position September 3 and reports to Peter de Silva, Chief Executive Officer.

“We are excited to welcome Keith to the IRALOGIX team and are eager to leverage his passion, expertise, and financial acumen to drive our continued growth,” said Peter de Silva, IRALOGIX CEO. “With his extensive background in the tech industry and a proven track record of financial leadership, Keith is the perfect fit to help us achieve our strategic objectives. We are confident that his insights and contributions will play a pivotal role in accelerating our growth and strengthening IRALOGIX’s position as a leader in the marketplace.”

“I’m excited to join IRALOGIX as CFO, especially at such a transformative time for our technology solutions to benefit the massive individual retirement account space. I look forward to shaping our business and financial strategy to fuel growth and deliver outstanding value to both customers and stakeholders,” Haas said.

Most recently, Haas served as CFO for FutureView Systems, a leading provider of solutions that empower financial transformation of management and accounting processes through innovative technology.

Previously, Haas held CFO positions at LeaseAccelerator, an enterprise SaaS company; Bridgestreet, a travel-tech platform; and Snagajob, a hiring and talent management solution for employers.

He has led multiple acquisitions and raised equity and debt totaling over $500 million across more than 15 transactions. Haas played a key role in the $1.3B sale of GeoEye, a commercial satellite data and imagery company, named the “Hottest Exit” by the Northern Virginia Technology Council in 2013.  “As IRALOGIX grows, Keith’s experience leading financial transformations will be critical,” said Pete Littlejohn, CRO and one of IRALOGIX’s founders. “Keith’s proven track record in driving operational efficiency and creating sustainable growth will ensure that we continue to deliver exceptional value to our clients while scaling our business to new heights.”

Haas is a Certified Public Accountant and has an MBA in finance. He resides in Virginia.