Enrollments and Roll-In Common Terms

Question 1

Advice Eligible

Answer 1

Designation indicating a plan is eligible for advice interactions with Workplace Planning and Advice (WPA)

Question 2

Annual Increase Program (AIP)

Answer 2

Customers who enroll in the AIP agree to increase their contributions by a certain amount on an annual basis. On the scheduled increase date, Fidelity sends the employer the new contribution amount based on the increase increment

Question 3

Automatic Enrollment

Answer 3

Plan-specific process where customers are automatically enrolled into the plan at a default deferral percentage and place funds into a default fund

Question 4

Auto-enrollment Unwind

Answer 4

Plan-specific withdrawal that allows customers to opt out of automatic enrollment within 90 days of their automatic enrollment date and have contributions returned to them after applicable taxes are withheld

Question 5

CheckScan

Answer 5

Mobile application that allows customers to deposit checks into their designated accounts by taking a picture of their check through the NetBenefits smartphone app

Question 6

Default Fund

Answer 6

Customers who do not actively direct their contributions into a specific fund have their money invested into a default fund selected by the plan

Question 7

Education Only

Answer 7

Designation indicating a plan is not eligible for advice interaction with WPA

Question 8

Enrollment

Answer 8

Customers decide to participate in their employer-sponsored retirement plans and contact Fidelity to indicate how much to contribute from each paycheck and how to invest those contributions

Question 9

Financial Engines (FE)

Answer 9

An independent third-party advisor specializing in providing advice and managed account services to select employer-sponsored plan customers

Question 10

Letter of Acceptance (LOA)

Answer 10

Custom letter that lists the type of investments Fidelity can roll into a plan

Question 11

Letter of Determination (LOD)

Answer 11

The IRS sends 401(k) plan sponsors this letter to indicate the plan meets the necessary requirements to be “qualified”. Most often needed when customers are rolling money out of the plan

Question 12

Letter of Qualification

Answer 12

Letter created by Fidelity’s legal department based on the IRS determination letter saying the plan meets the requirements to be qualified. Most often needed when customers are rolling money into the plan

Question 13

Model Portfolio Recordkeeping Service (MPRS)

Answer 13

A model portfolio is a preselected asset allocation, constructed from the plan’s core investment options by the plan’s named fiduciary or investment manager, if applicable

Question 14

Plan Sponsor Designation

Answer 14

Designation indicating whether the plan is education only or advice eligible

Question 15

Plan-to-Plan Transfer (PTOP)

Answer 15

Internal transfer of funds from one employer-sponsored plan to another when Fidelity record keeps both plans. The transfer consists of a rollover from one plan and a roll-in to another plan

Question 16

Prospectus

Answer 16

Document that provides important fund details, such as fund objective and fees. The SEC requires customers to read the prospectus and agree to its terms before purchasing a mutual fund

Question 17

Roll-In

Answer 17

Transfer of one retirement plan (an employer-sponsored plan or an IRA) into another retirement plan

Question 18

Verbal Trigger

Answer 18

Customer statements made by customers that might indicate a need for advice

Question 19

Visual Prompt

Answer 19

FocusPoint displays an exclamation point icon and the words Advice Log: Candidate as a visual trigger to offer advice. A visual audit might prompt a transfer to WPA if the PSD is advice eligible