401k Matrix

Answers to frequently asked questions.

How much does 401k MATRIX cost my client?
The normal annual charge for a 401(k) plan comes in two parts-set-up charges and the annual on-going administration. The setup fee ranges between $500 to $1,500. The annual, on-going administration charges range from $1,000 to $2,000. Fees can be higher for more complex plans. The New EGTRRA legislation allows up to a $500 credit for new plans being established.

How much does the broker make?
As a broker, you make .5% to 1% on first year contributions and rollovers. It's an opportunity to become a full-service benefits consultant and to cement your broker-client relationship.

What is 401(k)?
401(k) stands for the Internal Revenue Code under Section 401 for qualified plans and (k), which is a Profit Sharing plan that allows employees to make cash deferrals.

Who is eligible?
Employers with one or more employees.

What does 401k MATRIX offer?
401k MATRIX, LLC, is a pension consulting firm that sells 401(k) and Profit Sharing plans. Its services are designed to alleviate the burden of administration and plan design from the employer. 401k MATRIX provide full service 401(k) and Profit Sharing plans that are custom selected to fit a client's specific needs.

Who needs 401k MATRIX's services?
Brokers who want to have experienced pension consultants available to serve their client's needs. The pension marketplace is full of pitfalls that can create a lot of trouble for the inexperienced. 401k MATRIX is an out-source option that's comprehensive and professional. It's also fast, easy, and affordable.

How does a company know if it has a problem with their existing 401(k) plan?
These are just a few of the points that should be reviewed to see if a 401(k) or Profit Sharing plan has a problem:

Does the plan have a surrender charge?
Does the plan provide employee education? Is it just in the form of printed material or do the employees have access to a qualified person? Is the employee education provided each year?
Does the company maintain documentation of employee meetings and a file of the material given and subjects covered for compliance purposes?
Is the company's staff trained in administrative responsibilities?
Are the combined investment fund fees and asset charges over 2.00%?
Is the current investment choice a single-fund family provider or multiple-fund family provider?
Are the investment funds valued on a Daily Basis?
Do employees have access to their investment performance via Internet, Voice Interactive System and by statement? Can they make changes via these systems?
How efficient can your 401(k) provider secure needed payroll information for your payroll provider?

How can I assess my clients' 401(k) and Profit Sharing plan needs?
Brokers can call 401k MATRIX at 866.470-401k.

What is my client has an existing plan with a surrender charge?
A common problem in the marketplace, 401(k) Matrix has providers that will effectively offset and credit back the charge to make the client whole upon transfer.

How much work will it be for my client?
A qualified plan requires a certain amount of work on the part of the employer and/or staff. There is no getting completely away from it. Yet the right plan can reduce this to a manageable level, as well as the wrong plan will create an unnecessary burden.

Once a client is signed up, they simply provide 401k MATRIX with certain relevant information about their current employee situation and desired contribution and/match requirements. Then they must keep 401k MATRIX informed of new hires, plan enrollees, qualifying eligibility events, terminations, etc.

How can a company check its company information with 401k MATRIX?
The selected pension provider will work with you to develop access to whatever information is appropriate for the employer.