Millennium Trust Company has entered into an agreement to acquire The Bancorp Bank’s automatic rollover business for $65 million.
According to a press release, The Bancorp, Inc. will transfer all of its rights and obligations as custodian and trustee of its Safe Harbor IRA account portfolio to Millennium Trust. The transaction, which includes approximately 160,000 individual retirement accounts totaling more than $400 million in deposits with respect to which Millennium Trust will become the successor custodian, allows both companies to focus on growth within their respective areas of expertise.
Millennium Trust, which has provided solutions to accommodate distributions from ongoing, terminated or abandoned defined contribution plans since 2005, will assume The Bancorp Bank’s custodial and administrative duties under the automatic rollover program.
Millennium Trust’s automatic rollover program is designed to comply with the safe harbor regulations promulgated by the Department of Labor pursuant to Section 657(c) of the Economic Growth and Tax Relief Reconciliation Act of 2001.