Yes. Form 5500s are prepared to a signature-ready level for the sponsor to submit to the IRS website. Employee Fiduciary also prepares Summary Annual Reports for each client. This service is included in our annual fee.
Employee Fiduciary uses the latest release of SunGard Relius Administration (ASP). SunGard provides recordkeeping services for more than $25 trillion in banking and retirement plan assets worldwide.
Participants can view the following information on the web:
Participants can also change investment elections, initiate transfers, model loans, use a retirement plan calculator and update personal information.
All plan assets are held at Matrix Trust Company who serves as the plan’s custodian. We do not administer any plans with life insurance contracts or assets which cannot transfer to Matrix Trust Company.
Confirm with your Sales Associate if you have questions regarding any specific existing plan assets.
Matrix Trust Company is responsible for the collection and crediting of plan level dividends and capital gains as well as reporting realized/unrealized gains and losses. As custodian they prepare and submit all tax withholdings and prepare Form 1099R’s for benefit payments from your plan. As a directed trustee Matrix Trust Company will not exercise any oversight of plan administration, investment selection, or performance. Annual certified trust statements are provided to Matrix Trust Company directed trustee clients.
Participants must provide investment election instructions in whole percentages (1% minimum increments). Trade instructions can be provided in either whole percentages or in dollars. Employee Fiduciary does not limit trades to a minimum size.
Depending on your ownership percentage in each company you may be required to offer the plan to the employees of all companies. Please inform us of all companies you own any percentage of during the sales process so we can assist you in determining plan coverage requirements. Also check out our blog, Is Your Company Part of a Controlled Group? You Need to Know or Risk 401k Plan Disqualification.
Contribution limits are set by the IRS annually. Currently applicable limits can be found at http://www.irs.gov/Retirement-Plans/COLA-Increases-for-Dollar-Limitations-on-Benefits-and-Contributions
Quarterly participant benefits statements are posted on-line within 15 business days of quarter-end. If requested, Employee Fiduciary will also mail statements directly to participants, for an additional fee of $1.50 per statement mailed.
We provide both a participant and plan sponsor website.
We will provide you with a copy of our Participant Website Instruction booklet. You will provide this to participants during enrollment meetings and as new employees become eligible for the plan. The website is designed to be intuitive and includes help-icons and embedded tutorials.
All employee contributions and most employer contributions are submitted via our website. As plan sponsor you will designate a payroll contact who will receive a detailed personalized training by your New Business Analyst during installation. We will also provide a detailed manual.
No. We require that all trade orders are submitted via the participant or sponsor website.
The participant website is available in both English and Spanish.
Yes. The participant helpline (877) 401-5100 is open 8:00am-5:00pm Central Time.
Yes. At plan establishment, an installation specialist will be assigned to your plan to manage its onboarding process. Once the onboarding process is completed, a relationship manager will be assigned to your plan as a day-to-day contact.
Employee Fiduciary maintains liability and E&O coverage. Matrix Trust Company also maintains liability and E&O coverage with a limit of $10 million. In addition, Matrix Trust Company carries a STAMP Bond with a $5 million limit. Also included is a Financial Institution Bond providing $10 million in coverage for losses resulting from employee or third-party dishonesty and robbery, and first-party computer crime.
We offer all mutual funds that are NSCC-tradable, available through our custodial platform and open for new investing, including all Vanguard Funds. There are nearly 30,000 share classes from 377 fund families to choose from. Availability is subject to rules set by each fund distributor.
With our open architecture fund availability, you can select funds from various fund families. For example, you can offer your employees funds from Vanguard, T Rowe Price, Fidelity, and many others.
Employee Fiduciary offers an open architecture fund line-up, with no mark up or proprietary investment requirements. Any mutual fund that is NSCC tradable, available through our custodian (Matrix Trust Company) and open for new investing can be selected for your plan. Searching Morningstar.com for information on mutual funds can assist you in determining funds for your plan. Details included on Morningstar.com include the fund’s performance, ratings & risk, and investment minimum. Also included will be information regarding any fees associated with the fund. Your Conversion/Set Up Specialist will assist you in determining if a fund you have selected is available to offer inside of your plan.
Yes. Optional self-directed brokerage accounts (SDBA) are available through TD Ameritrade. Employee Fiduciary charges $100 per SDBA per year. TD Ameritrade may also charge an additional fee.
No. We work with over 200 investment advisors across the country. About 40% of sponsors hire an investment advisor. This matches national industry averages. See our Advisor Directory. Your sales consultant can help you navigate the different options available and help you select the best one for your business.
Yes. We offer every major exchange traded fund. ETFs, unlike mutual funds, are bought and sold like a stock and consequently have trading costs and other fees to allow the purchase and sale of fractional shares. These trading and fraction share reporting services are provided by the plan’s custodian and trading agents, who charge additional fees. While ETFs are much less expensive than the typical mutual fund offered in the typical 401k, most sponsors and advisors prefer lower cost mutual funds to ETFs because lower cost mutual funds do not have any additional trading costs. Currently trading costs on ETF’s are $.01 per share traded.
Invoices are submitted on a quarterly basis and can be paid using several methods:
Plan Establishment Fees:
Annual Administration Fees:
Ongoing fees may be deducted out of plan assets or billed to the company. Any fees deducted from plan assets are allocated pro-rata based on account balances, in keeping with best practice recommendations from the Department of Labor.
Employee Fiduciary calculates fees based on eligible employees (whether the employee has an account balance or not). The number of eligible employees reported on the previous year Form 5500 is used for determining number of eligible employees for current year billing.
Yes. Revenue sharing payments can be used to offset our fees or reallocated to participant accounts
Most expenses related to the daily operation of the plan can be deducted from plan assets. Examples of fees which cannot be deducted from plan assets include fees associated with the calculation and processing of any refunds due to non-discrimination testing failures, any employer requested plan amendments, and calculations on late contributions.
No. Minimum purchase requirements, if any, are 100% dependent upon the policies of the mutual fund companies. Minimums, if applicable, are always set at a plan level, not per participants. If you have questions about specific fund availability, please let us know.
All fees associated with Matrix Trust Company are directly billed to Employee Fiduciary. Employee Fiduciary will pay the custodian fees from the asset based fee that is included in our annual administration fee.
Yes, you will have the same client relationship manager for all your plans. This allows both you and Employee Fiduciary to strengthen relationships to better serve your clients.
Advisors may choose to submit an invoice each quarter for direct payment, or submit a continuing arrangement for calculation of fees on a pre-approved percentage of plan assets. We'll collect your fees and remit them to you or your OSI.
Employee Fiduciary will provide an enrollment kit which includes an enrollment form, beneficiary designation form, Summary Plan Description, and annual fee disclosure/notice. Customized enrollment booklets can be ordered for an additional fee.
Yes. An instruction manual will be provided in your enrollment kit.
Yes. If the plan sponsor chooses to have advisory fees paid from plan assets.
Yes. As a part of the implementation process the plan sponsor will grant access to the plan’s website. You can opt to have view only access or access to make trade and allocation changes on the behalf of the participants.
We are 100% employee owned. We have no ownership stake, nor receive any direct compensation or benefit from any service providers, investment managers or mutual fund companies with whom we work.
100% of our revenue comes from recordkeeping, administration and consulting of qualified plans.
We can service the following types of retirement plans:
Many of our employees have earned industry credentials from the American Society of Pension Professionals and Actuaries (ASPPA), including 16 Qualified 401(k) Administrators (QKA), 3 Certified Pension Consultants (CPC) and 3 Enrolled Retirement Plan Agents (ERPA). All staff members are required to receive baseline and ongoing training and are encouraged to further their education thru additional coursework and examination by ASPPA.
Many of our plans range from 5-30 participants and from $0 (startup plans) to $10 million in plan assets. There are no minimum requirements for assets or number of participants. Startup plans are welcome.
Key differentiators include:
As of May 2021, we serve over 4,600 plans nationwide with more than $4.8 billion in assets. Approximately 135,000 participants are covered by these plans.
As of May 2021, we employ over 80 full-time employees.