Securian Financial Waives 401(k) COVID-19 and Hardship Distribution Fees, Offers Employers Free Fiduciary and Wellness Services

Business Wire

ST. PAUL, Minn.--(BUSINESS WIRE)-- Securian Financial is waiving all COVID-19 related 401(k) distribution fees for the retirement plans it serves as recordkeeper and, moving forward, will permanently make all hardship distributions fee-free to customers—regardless of the triggering event.

Additionally, Securian Financial will act as an ERISA 3(16) fiduciary for participant distributions and loans under the CARES Act, at no additional cost, for its existing full-service 401(k) employer customers. The company will also provide these customers with a suite of wellness services to make available to their employees, free-of-charge, through the end of the year.

“Many of our retirement plan customers are struggling and need help during this challenging time. We are here to support them and their employees by providing financial relief and one-on-one wellness counseling resources, at no cost, to those who need it most,” said Ted Schmelzle, Securian Financial’s senior director of retirement solutions.

Under the recently enacted CARES (Coronavirus Aid, Relief and Economic Security) Act, individuals younger than age 59½ can withdraw up to $100,000 from their 401(k) without paying the usual 10% penalty provided the distribution meets certain criteria. Securian Financial will not charge customers a fee for COVID-19 related 401(k) distributions, and to ensure equitable treatment, the company is permanently waiving all 401(k) hardship distribution fees.

For all full-service 401(k) employer customers who provide relief to their employees under the CARES Act, Securian Financial will assume the role of ERISA 3(16) fiduciary¹ at no additional cost—reducing employers’ administrative responsibilities and lessening their fiduciary burden. Securian Financial will also waive the ordinary applicable plan amendment fee.

The wellness services Securian Financial is making available free-of-charge to its 401(k) customers through the end of the year include access to professional financial and grief counselors, self-service tools to prepare legal documents such as a will, power of attorney or health care directive, and relevant education.

A history of retirement plan service excellence

Securian Financial has been helping people save for retirement since 1930. Its platform features long-tenured retirement specialists, fiduciary-friendly fee levelization practices and extensive administrative outsourcing, most of which is offered at no additional cost. Securian Financial provides services to employer-sponsored retirement plans through group annuity products issued by Minnesota Life Insurance Company.

ABOUT SECURIAN FINANCIAL

At Securian Financial, we’re here for family. And we’re here because of it. We’re guided by our purpose: helping customers build secure tomorrows. Since 1880, we’ve been building a uniquely diversified company that has outlasted economic ups and downs while staying true to our customers. We’re committed to the markets we serve, providing insurance, investment and retirement solutions that give families the confidence to focus on what’s truly valuable: banking memories with those who matter most.

1. Securian Financial’s Employee Retirement Income Security Act (ERISA) 3(16) fiduciary role as part of this free offer to its existing customers involves approving and processing loan and distribution requests resulting from the CARES Act. Plan Sponsors may outsource a variety of administrative tasks to accredited, independent professionals called 3(16) fiduciaries.

This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of voiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation.

This is a general communication for informational and educational purposes. The materials and the information are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional.

Securian Financial’s qualified retirement plan products are offered through a group variable annuity contract issued by Minnesota Life Insurance Company.

Securian Financial is the marketing name for Securian Financial Group, Inc. and affiliates. Minnesota Life Insurance Company is an affiliate of Securian Financial Group, Inc. Securities and investment advisory services offered through Securian Financial Services, Inc. registered investment advisor, member FINRA/SIPC.

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