A Recordkeeper is a company that maintains all of the records associated with your account. Envoy TPA and Recordkeeping, Inc. is your Recordkeeper.
The Recordkeeper tracks and reports on the investment selections, contribution amounts, contribution sources, account balances, and other important items for the account. The Recordkeeper also produces the quarterly account statements and maintains the website.
Another significant aspect of recordkeeping services is the safekeeping and trading of your investments. Envoy Choice IRAs are held in Custodial Accounts. In other words, Envoy does not handle the cash. Nor do we hold the mutual fund shares that are purchased with the cash. Instead, Envoy contracts with an independent institutional custodian for these services. Matrix Trust Company is your Custodian.
Recordkeeping costs include two components – a fixed dollar cost and an asset-based cost. We refer to the fixed cost component as “administration” and the asset-based cost as simply “recordkeeping."
The administration costs are a fixed dollar amount of $35 per year. This expense is deducted from your account on a monthly basis.
The recordkeeping costs are 50 basis points per year, or 1/2 of one percent on an annual basis. This expense is deducted from the Participant’s account on a monthly basis at a rate of 4.16 basis points (approximately 42/100ths of one percent) multiplied by the ending account balance for the prior month.
Example: If you have an account balance of $10,000, you could expect to pay an annualized recordkeeping expense of $50.00 per year, or $4.16 per month. In addition, you could expect to pay an administration expense of $35.00 per year, which would be deducted from your account at the rate of $2.92 per month.