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Help is just a call away.
For more information about 401(k) and Profit Sharing plans - compliance and administration services, or 401k MATRIX, e-mail 401k MATRIX Sales Support or phone us at 866.470.4015.
And check out our helpful resources.
401k MATRIX
401k MATRIX
2091 Hallmark Pl.
Escondido, CA 92029
Phone: 866 470-4015
Fax: 760 432-9604
Noel Trias
Ntrias@401kmatrix.com
Jim Holly
jholly@401kmatrix.com
Even the best way can sometimes seem like an upward climb. With your knowledge of your organization's culture and our knowledge of the employee benefits landscape, together we will find the successful solution to your specific challenge. With the MATRIX's winning combination of client focus, strategic approach, and competitive pricing, we can help your client reach their goals.
INFORMATION ABOUT QUALIFIED PLANS
To understand what you need in a plan you must understand the components of a 401(k) plan. These components are:
- Administration
- Compliance
- Recordkeeping / Investments
- Trust
401k MATRIX understands how a plan works and which providers in the marketplace do the best job in each area or in a combined package. Plans are segmented by Bundled, Unbundled, Integrated and Alliance providers. 401k MATRIX will select the right plan for your client.
- Bundled plans means all four components are done in-house.
- Unbundled means separate companies perform the separate components.
- Integrated plans are just like Unbundled only they have electronic links to expedite the transfer of data.
- Alliance is another form of Unbundled but with strategic agreements between major name providers
Another criteria in the MATRIX for determining the right plan is by number of employees or the amount of total assets.
401k MATRIX conducts a search of the top providers - funds comparing over 100 separate items of interest. As search consultants we can find the plan that meets your client's specific requirements and needs.
401k MATRIX helps you to:
- To avoid plans with surrender charges - a surrender charge is assessed whenever an employer moves their plan before the start-up cost is fully amortized by the current 401(k) provider. One of the biggest challenges we face is when a firm realizes their plan isn't working very well and tries to move, only to find they will incur a surrender charge based on the assets.
- Match the right investment provider, recordkeeper and administration firm.
- Provide custom plan design - such as eligibility, employer matches, Safe Harbor to name a few criteria.
To accomplish this we need to know what are the goals of the employer:
- To attract and retain quality employees? Top employees are usually responsible for most of a firm's profits. Employee turnover, recruiting and training expense will eat away at profits.
- Generate the most tax deductions possible?
- Enjoy investment fund flexibility by offering:
- hundreds of top funds
- single and multiple fund family choices
- personal brokerage account option.
One of the biggest reasons for the success of a 401(k) plan is employee education of the opportunity presented to them. To accomplish this 401(k) coordinates:
- Employee education/enrollment meetings - provide assistance for employees in proper asset allocation including on-site enrollments, investment, and asset allocation models information.
- Find providers that offer assistance in Fiduciary and 404c reviews. Do you have the ERISA-mandated Investment Policy Statement? Many small firms do not even know how extensive this area is, nor of the penalties that the Department of Labor can impose when they do an audit and discover problems. Proper documentation of requirements is crucial.
QUALIFIED PLANS INCLUDE:
- 401(k)
- Profit Sharing - employer-only contributions up to the Section 415 limitations.
- Safe Harbor 401(k) - eliminate ACP and ADP testing with higher contributions.
- Double Advantage Safe Harbor 401(k) - eliminate ACP and ADP testing and Top Heavy problems with higher contributions.
- Social Security Integration - simple and low-cost way to get higher income employees more of the employer contributions.
- New Comparability, Tiered, Cross-Tested plans - very popular integration formulas which allow greater contributions for older and / or top income executives.
- ESOP - giving employees the chance to experience ownership without costing a firm all of their profits.
- Defined Benefit - The right owner or executive in smaller firms can leverage the highest contributions amounts possible.
- 412(i) plans - one of the new hot plans for executives with several specific advantages.
One of the advantages of the new EGTTRA tax law effective 1/01/2002 is that employees can consolidate their IRA, SEP or SIMPLE money into their 401k or other Qualified Plan
401(k) and Profit Sharing Plans Helpful Resources
More Reading
On The Web
Information on The pension marketplace is readily available on the Internet. Here are several reliable sites you might check out:
For Pension questions
Call the Department of Labor at 202.219.8776.
©
2002 401k Matrix. All Rights Reserved.
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