Retirement Cash Management AccountTM (RCMA® Investment Only Account)
The Merrill Lynch Wealth Management RCMA® Investment Only account is a retirement plan account that offers a broad range of investment solutions, professional managed money services and the investment guidance of a Merrill Lynch Financial Advisor who can help you and your employees reach your retirement goals.
WHO CAN BENEFIT FROM AN RCMA INVESTMENT ONLY ACCOUNT?
The RCMA Investment Only account can accommodate new or existing retirement plans for businesses of any size. It may be best suited for plan sponsors seeking an investment-only solution who may not be satisfied with standard investment selections and seek a more robust alternative. The Investment Only account works well with a variety of qualified retirement plans including 401(k), profit-sharing, defined benefit and money purchase plans. Since the RCMA is an investment-only account, recordkeeping, administrative duties, tax reporting and trustee arrangements must be handled by an administrator of your choice.
HOW CAN AN RCMA INVESTMENT ONLY ACCOUNT BENEFIT YOUR PLAN?
Investing and managing your retirement plan assets are complex and challenging responsibilities. Your Financial Advisor and the RCMA Investment Only account could make meeting those responsibilities easier. The chart below highlights some key benefits, depending on the account type you select.
INVESTMENT
CHOICES | - A broad array of stocks, bonds and mutual funds to optimize the potential to reach your retirement goals.
- A variety of professional managed money solutions, ranging from nondiscretionary programs to customized investment consulting. With managed money solutions, you place day-to-day trading and investing decisions in the hands of an experienced professional, freeing up time for your other responsibilities.1
- The Automated Investment Program (AIPS) allows you to systematically purchase shares of most mutual funds at a designated frequency and dollar amount.2 AIPS facilitates disciplined, long-term investing for plan sponsors and participants.
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INVESTMENT
SOLUTIONS | - A Financial Advisor to help you choose the investment solutions that best match your financial needs and goals.
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CASH
MANAGEMENT | - A daily sweep of uninvested cash into a BIF® money market fund* to help keep your money working at all times.
- Check-writing privileges for plan trustees or authorized designees.
- Fund transfer capabilities that can be used for any purpose that normally requires a check, including plan contributions and benefit payments or other deposits and disbursements.
* An investment in the fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. |
ACCOUNT
MANAGEMENT | - Monthly statements that track plan expenses and activity.
- Fiscal summary statement that details account activity throughout the year.
- Merrill Lynch Web site, an Internet-based service that allows you to access account information, research, quotes, market data, news and e-mail.
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ELECTRONIC
CONTRIBUTIONS | - Merrill Lynch E-Contribs for Small Business Retirement AccountsTM enables you to make electronic contributions to plan sponsor and participant RCMA plan accounts.
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WHAT ACCOUNT TYPES ARE AVAILABLE?
Merrill Lynch offers three different RCMA account types that were developed with your needs in mind. Each has different features and costs, allowing you to choose the services that are most appropriate for your plan.
- The RCMA Premium Account offers the most flexibility and services for cash management, including a choice of money fund options, check-writing privileges and an annual fiscal statement for business owners who seek a full-service investment-only account.
- The RCMA Master Financial® Service links at least one or multiple RCMA SubAccounts® to one RCMA Master Account. This option is best suited for business owners who seek a full-service investment-only account yet want to segregate their plan assets according to investment objectives or participant direction.
- The RCMA II is a lower-cost alternative to the premium service for business owners who require fewer cash management capabilities yet seek a robust menu of investment solutions and the guidance of a Financial Advisor.
The following chart illustrates the services you can receive from each RCMA account type:
| Features | Premium/Master
Account | RCMA
SubAccount | RCMA II
Account |
| Daily sweep of cash balance | Yes | Yes | Yes |
| Money market sweep choice | Yes | Yes | BIF Money Fund only3 |
| Check-writing privileges | Yes | No | No |
| Funds transfer service | Yes | Yes | Yes |
| Monthly statement | Yes | Yes | Yes |
| Annual fiscal statement | Yes | Yes | No |
| Merrill Lynch Web site | Yes | Yes | Yes |
| AIPS | Yes | Yes | Yes |
WHAT ACCOUNT STRUCTURES ARE AVAILABLE?
RCMA accounts can be established in a trustee- or participant- directed structure.
- In a trustee-directed structure, one or more accounts may be established for all plan assets, based on your investment strategy.
- In a participant-directed structure, separate accounts are established for each plan participant who directs how assets are invested.
HOW CAN YOU GET STARTED? If you want to optimize your company's retirement plan assets, call your Financial Advisor to discuss Merrill Lynch's RCMA Investment Only account. Your Financial Advisor is committed to understanding your specific needs and can help you develop customized strategies that meet the retirement planning objectives of you and your employees. |
1Minimum investment amounts apply to managed money services.
2AIPS allows you to take advantage of dollar cost averaging, which, along with other periodic investment plans, does not assure a profit or protect against loss in declining markets. Such a plan involves continuous investment in securities regardless of their fluctuating prices. Investors should consider their financial ability to continue their purchases through high or low price periods.
3An investment in the fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.
For a current prospectus of Merrill Lynch money funds, which contains more complete information, please call your Financial Advisor. For more complete information on the investment options, including their management fees and other charges and expenses, please consult the prospectuses and other comparable documents. Investors should carefully consider the investment objectives, risks, charges and expenses before investing. This and additional information about the investment options can be found in the prospectuses, which can be obtained by calling your Merrill Lynch Financial Advisor. Please read these documents carefully before investing.