As a participant in your employer’s retirement plan, you are always in control of your investments, and you are responsible for making all decisions about whether to participate in your retirement plan and where to invest your account. Vestwell does not provide legal, tax, accounting, or any personal investment advice to any participant. We provide fee disclosures and other notices to help you understand the plan's benefits, rights, and features. You should read them carefully; they are all located in the participant portal on the platform and we sent them to you with your welcome email. You may also wish to consult with your own financial or other professionals before making any investment decisions. All transactions on our platform will be subject to these Trading Policies. If you have any questions about these policies or need technical assistance, please contact email@example.com.
1. Changing Investment Selections and Allocations
After enrolling in the plan, you can select initial investments using various methods to accommodate participants' comfort levels with choosing their investments:
- Core Lineup – provides a diverse lineup of low-cost funds.
- Age-Based Investments – A set of Target Date Funds aligned to the number of years before participants turn age 65. Participants can select more or less conservative options.
- Risk-Based Investments – A series of model portfolios that allow participants to select from a range of conservative to aggressive strategies.
- Goal-Based Investments - This is Vestwell's Managed Accounts feature where your Plan's investment fiduciary has selected investment options for your Plan. Based on information that you or your employer provide to us, the service suggests a possible investment allocation that you can accept or change at any time. This feature is not available for all Plans on our platform at this time.
Investment education materials with information about these options are available on the participant portal of our platform.
After selecting initial investments, participants can change their selections at any time by logging into their accounts. Participants can make one change per day by following instructions on your platform. Changes submitted before 1:00 pm EST will usually be executed that same business day; selections submitted after that time will be executed on the following business day. If a participant submits multiple changes in one day, only the last of those changes submitted prior to the cut-off time will be implemented.
The only time participants cannot change their investment selection is when the plan is in a temporary blackout period and, in that instance, changes can not be made to existing plan assets that are being transferred to our platform from a prior recordkeeper. Participants will receive a Blackout Notice if restrictions apply to them.
2. The Investment Fiduciary's Role in Monitoring and Changing Investments
Offered by your Plan
Your plan’s investment fiduciary is identified in fee disclosure notices provided to you with your welcome notice and annually. The investment fiduciary selects and monitors the investment options available to participants and will also review the performance, fees, and other aspects of the investment options and may make changes to the investment menu. If any material changes are made to the investment options available to your plan, they will be communicated to participants. When your plan’s investment fiduciary makes a change to the allocations of a model strategy or Target Date Fund that you are invested in, your vested account balance may be automatically rebalanced to reflect the new allocations. If your Plan offers the Managed Account feature, our platform will base your suggested asset allocation on the information provided by your employer (such as your age, account balance, and contribution rate). You can provide additional information to your profile at any time, and the suggested allocations may change. Likewise, you can accept or change those suggested allocations at any time.
3. Account Rebalancing
Over time, and due to market fluctuations, the value of one or more of the Target Date Funds (these are listed in the Age-Based Investments), model portfolios (these are listed in the Risk-Based Investments), or other investment options available to you may drift from its original target allocations. For instance, the Moderate Aggressive Strategy has a target allocation of 20% fixed income and 80% equity. A Target Date Fund has an asset allocation that is aligned with the target retirement date you select. Stocks generally increase in value faster than fixed income instruments so the stock portion of the Model Portfolio or Target Date Fund could increase in value faster than the fixed income portion. If that occurs, your account will be rebalanced by taking appropriate steps to buy, sell, and/or reinvest dividends to rebalance the investment accordingly.
If you use the Core Lineup function to select your investments, you will set an allocation for your investments. As with a Target Date Fund or Model Portfolio, the balance between your selected investments can shift over time due to market fluctuations, changes in the amount you contribute to your plan, or other factors. Rebalancing your plan is a way for you to reset your existing vested balance and/or future contributions to the allocations that you have selected to best suit your financial goals. We will not rebalance your Core Lineup of investment options to adjust your account portfolio to your initial desired allocations unless you enable Account Rebalancing on your account. Once enabled, you can select to have Account Rebalancing applied on a quarterly basis going forward until you turn off Account Rebalancing or you may select a one-time rebalance only.
If you are using the Managed Account service of our platform, your account will rebalance if you enter additional information into your profile. Participants using this feature are not permitted to turn off automatic rebalancing or access rebalance settings on our platform.
Please note that for any account rebalancing submission, it can take several days for trades to settle and for your account balance and allocation to be properly displayed in your Vestwell account portal. If you have any questions about account rebalancing, please contact firstname.lastname@example.org.
4. Changes to Models and Core Lineup
Our platform requires advisors to submit the initial investment lineup or changes to it in a specific format. In general, changes made within a model (including fund additions/removals as well as allocation changes) take at least 10 business days to process after submission in Good Order. Changes to the core lineup take a minimum of 45 days to process because we are legally required to send a notice to affected participants and eligible employees at least 30 days ahead of the change.
5. Investment Performance
Participants can view investment performance for all holdings in their retirement plan by logging into their account and accessing the “Portfolio” tab. Beginning approximately 30 days after your plan is onboarded to our platform, investment performance is updated on or about the seventh business day of the month.
Within the “Portfolio” section of the portal, participants can also view the names, allocation, market value, and expense ratio of the individual funds in their account. Each fund's name includes a link to the fund’s factsheet, where additional information specific to each fund is available. Factsheets are updated on a monthly or quarterly basis.
Additionally, by clicking on “Transactions,” participants can view all activity within their account. This includes contributions, withdrawals, dividends, rebalances, fees, and any other account activity. The Transaction Log is updated as of the close of the previous business day. If you notice any activity that you do not recognize or did not authorize, you must contact us immediately at email@example.com or call (917) 979-5358.
Participants are provided with account statements each quarter. Unless you have instructed us otherwise, all statements will be posted shortly after the end of each calendar year quarter in the “My Plan” section of the participant portal. These statements provide participants with details regarding the previous quarter's contributions, holdings, investment earnings, and balance. If you notice any activity that you do not recognize or did not authorize, you must contact us immediately at firstname.lastname@example.org or call (917) 979-5358.
Your Plan may allow participants to borrow against their vested retirement plan account balance to purchase a primary home or for other purposes. Please refer to your plan document and Loan Policy Statement to confirm whether your employer adopted a loan feature and instructions about obtaining one. Please note that your plan may impose limits regarding how many loans one participant can take at any time as well as the maximum amount of any loan. Participants who wish to borrow against their retirement plan balance can submit an application on our platform. It generally takes seven to ten business days to review a loan application. Please note: If you have terminated your employment with the company whose plan was serviced by Vestwell, you are no longer eligible to take a loan from your account.
8. Hardship Withdrawals
Your plan might also permit participants to withdraw from their vested account balance in case of a financial hardship. The IRS requires certain documentation or confirmation from the participant in order to obtain a hardship withdrawal. Participants can submit an application on our platform. It generally takes seven to ten business days to review a hardship application. You must be a current employee to be eligible to take a hardship withdrawal.
9. Proxy Voting
We do not provide services with respect to voting proxies for securities held by the plan nor take other action related to the exercise of shareholder rights regarding such securities.
If you have any additional questions about these Trading Policies and Procedures, please contact us anytime at email@example.com.
This article was updated in October 2021