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E*Trade Begins Touting WMSI's EGTRRA Service

Janurary 7, 2005 - E*Trade Securities has begun touting a new service that will enable 401(k) investors with small accounts to roll over their assets to an IRA seamlessly. In March, under new provisions of Economic Growth and Tax Relief Reconciliation, 401(k) sponsors will be required to automatically roll over accounts less than $5,000 unless the employee stipulates otherwise. E*Trade has signed a deal with Wealth Management Systems, a Madison, Conn.-based technology provider (www.fundmarketing.com, 9/3), and has started actively marketing the service to plan sponsors, said Michael Curcio, executive v.p. of retail brokerage. He said the firm may market the service directly to investors as part of its corporate services division eventually.

"We are talking to plan sponsors and plan administrators and walking them through the service," said Naveen Argawal, director. While several firms are shying away from these small accounts, E*Trade sees this as a business opportunity. "We feel that we can cross-sell products and not only grow our account base, but also our asset base with time," he said.

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