Step 1: Adopt the Sterling Trust 401(k) Plan

Complete the Sterling Trust 401(k) plan adoption agreement. Sterling Trust’s Customer Service Representatives available to assist you with the completion of this form and to answer any questions you may have. If you wish to maintain your existing plan without changing your plan documents, only Sterling Trust’s service agreement should be completed.

Step 2: Review the Conversion Checklist and Provide Requested Information

The adoption agreement includes a step-by-step explanation of the required information. It is important that this information be provided initially and that you maintain copies for your records.

Step 3: Choose the Type of Conversion

Cash Conversion - You may elect to liquidate all assets of participants and transfer cash directly to Sterling Trust. The cash will then be allocated according to the investment elections signed by participants during enrollment.

Mapped Conversion - With the aid of your financial professional, you can select similar funds as your new investment options within your Sterling Trust 401(k) plan. There will then be a direct transfer of assets into the new funds from the existing funds. Once completed, the participants can then begin rebalancing through our web site, our voice response unit or by telephone to one of Sterling Trust’s Customer Service Representatives.

Step 4: Scheduling of Conference Call

Upon receipt of the adoption or service agreement, Sterling Trust will schedule a conference call with the plan sponsor and investment professional to address any questions before we begin the transfer process.

Step 5: Terminate Existing Services

Your prior record keeper may have requirements in place regarding notification of termination. These could be as much as 120 days or as little as 30 days. Notify your prior record keeper of the change as well as Sterling Trust to allow for proper planning. Remember…your prior record keeper may not share the incentive to terminate the services and transfer the plan to Sterling Trust and follow up may be needed.

Step 6: Provide Prior Reports to Sterling Trust

Sterling Trust will need the prior year-end report and any quarterly reports from the prior record keeper (if transfer is made during mid year). All transactions to the date of actual transfer will also be required. In addition, provide all contact information (name, phone number, etc.) to Sterling Trust for the individual that will be responsible for the administration of the plan. This will aid with the information flow of the transfer.

Step 7: Request Files

Request electronic conversion files from your prior record keeper if they are available. Electronic files will greatly reduce the time necessary to complete the conversion as well as reduce any black out period on the plan. The previous record keeper may charge an additional fee for electronic files. If electronic files are not available, hard copy reports are required and must be provided to Sterling Trust.

Step 8: Plan Reports Must Balance

Please make sure that all participant records balance with your total plan asset report. Should they not balance, Sterling Trust will assist you in working with your prior record keeper to resolve the discrepancy. It is very important to review these plan reports to avoid potential delays.

Step 9: Provide Payroll Files

Verify with your payroll provider that electronic payroll files can be provided to Sterling Trust on an ongoing basis. Though not required, electronic payroll files will speed the investment of cash for your participants.

Step 10: Enrollment and Blackout Periods

In conjunction with your financial advisor, host your enrollment meeting. Make sure you understand the blackout period and the reasons for it prior to the meeting. The conversion process will go more smoothly if the participants understand the blackout and why it is necessary.

Step 11: Communication and Review

Finally, make sure there is open and timely communication between your company and Sterling Trust. Sterling will contact you if we need additional information or help. Timely communication will speed up the process. In addition, review daily the steps taken during the process of transferring. This will insure accuracy from the first day with your new Sterling Trust 401(k) plan.

Remember: No Conversion is perfect, and open communication and follow-up will help reduce the issues that arise as the conversion is made.