Iowa Admin. Code r. 781-16.7 - Program administrator rights and responsibilities
(1) The program administrator reserves the
right to:
a. Freeze an account or suspend
account services or do both when a plan has received reasonable notice of a
dispute regarding the assets in an account , including notice of a dispute in
account ownership or when the plan reasonably believes a fraudulent transaction
may occur or has occurred;
b.
Freeze an account or suspend account services or do both upon the notification
to the plan of the death of an account owner until the plan receives required
documentation in good order and reasonably believes that it is lawful to
transfer the account ownership to the successor account owner ;
c. Redeem an account , without the account
owner 's permission, in cases of threatening conduct or suspicious, fraudulent,
or illegal activity; and
d. Reject
a contribution for any reason, including contributions that the plan believes
are not in the best interests of the plan , a portfolio, or the account
owners.
(2) The risk of
market loss, tax implications, penalties, and any other expenses, as a result
of such an account freeze, account redemption, or contribution rejection, will
be solely the account owner 's responsibility.
(3) The contractor will provide each account
owner a fourth-quarter statement. In addition, the program administrator will
provide each account owner that had an account with either contributions or
withdrawals in the first, second, or third quarter with a quarterly statement
for that account .
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(1) The program administrator reserves the right to:
a. Freeze an account or suspend account services or do both when a plan has received reasonable notice of a dispute regarding the assets in an account , including notice of a dispute in account ownership or when the plan reasonably believes a fraudulent transaction may occur or has occurred;
b. Freeze an account or suspend account services or do both upon the notification to the plan of the death of a participant until the plan receives required documentation in good order and reasonably believes that it is lawful to transfer the account ownership to the successor participant ;
c. Redeem an account , without the participant 's permission, in cases of threatening conduct or suspicious, fraudulent, or illegal activity; and
d. Reject a contribution for any reason, including contributions that the plan believes are not in the best interests of the plan , a portfolio, or the participants.
(2) The risk of market loss, tax implications, penalties, and any other expenses, as a result of such an account freeze, account redemption, or contribution rejection, will be solely the participant 's responsibility.
(3) The contractor will provide each participant a fourth-quarter statement. In addition, the program administrator will provide each participant that had an account with either contributions or withdrawals in the first, second, or third quarter with a quarterly statement for that account .