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Custodian transfer FAQs

LAST REVIEWED Sep 23 2022 9 MIN READ

By The Human Interest Team

Editorial Policy

Your Human Interest account recently transitioned to a new recordkeeping system. As part of that change, your funds have been invested with a new custodian. 

What is recordkeeping?

Recordkeeping is an essential aspect of 401(k) and 403(b) plans. A recordkeeper is responsible for tracking contributions, earnings, and investments and directing the custodian to execute trades. This is essentially the bookkeeping function of the plan, where all the figures stay up to date.

What is a custodian?

A custodian is a financial institution such as a bank or a trust company that holds plan assets and executes trades, as directed by the recordkeeper. 

How does a custodian change impact my account?

Your investments were liquidated so they could be transferred between custodians as cash. Once your cash was received by the new custodian, it was re-invested based on your current investment elections. All transactions associated with the transfer will be displayed as a “Custodian Transfer” in the activity feed on your Human Interest dashboard.

If your portfolio allocation differed from your investment elections prior to the custodian transfer, your portfolio allocation may have changed. An example of how this might happen is if you made a change to your investment elections and opted to apply that change to future investments only, and not rebalance your account. 

If you would like to change your portfolio to the prior allocation, please email us at [email protected] and we will walk you through the steps.

What do I need to do?

No action is required on your part. Your account has been transitioned automatically. 

Have another question?

Email us at [email protected]

We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees. Human Interest offers a low-cost 401(k) with automated administration, built-in investment education, and integration with leading payroll providers.

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Disclosures

The content in this blog post has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Human Interest's investment advisory services are provided by Human Interest Advisors, LLC, an SEC-Registered Investment Adviser. Investing involves risk and may result in loss. Past performance is no guarantee of future results, and expected returns may not reflect actual future performance.