4 features to look for in your Retirement Withdrawal Software

For a retirement plan provider, withdrawals or distributions are the key liquidity events in the entire plan management cycle. Given the number of participants that every plan provider manages, withdrawals also take a significant scale. Digitization of retirement withdrawal management can significantly improve efficiency and accuracy.

If you’re in the market for retirement withdrawal software, here are some of the most important features you need to look for.

1. Withdrawal Options

Withdrawals may be of different kinds, including required minimum distributions (RMDs), hardship withdrawals, in-service withdrawals, and more. Multiple delivery channels, including wire transfers, checks, and electronic fund transfers (EFTs), exist. A retirement withdrawal software that supports all these makes the process significantly more streamlined.

2. Rules-based Automation

Large volumes of paperwork requiring repetitive processing present ideal opportunities for automation. A retirement distributions system that allows you to define processing rules based on criteria like employee eligibility, plan, source, etc. can play an important role in understanding participant preferences in withdrawals.

3. Integrations

While distribution management is essential for a plan provider, it is far from an isolated requirement. Given the cross-dependencies between withdrawals and other aspects of the plan management process – such as enrollment, payroll, loans etc. – your retirement withdrawal software needs to integrate seamlessly with the other applications you are likely to deploy.

4. Documentation and Logs

It’s no secret that the retirement plan industry revolves around compliance! Audits are an important part of the life of a plan provider, and the software package you choose needs to cater to this need. For this, retaining supporting documents for each stage of the withdrawal process and maintaining comprehensive audit logs are important considerations.

Congruent’s CORE Distributions solution offers each of the features above and several more to deliver reliable, accurate and highly efficient withdrawal management with streamlined document and information flows. Contact us to know more.

Date Published: October 6, 2022

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