Will your firm prepare the plan’s tax return (Form 5500) and Summary Annual Report?

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.

Will you please describe your daily valuation record keeping software?

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.

Will you please describe the information and transaction capabilities participants receive through the participant website?

Participants can view the following information on the web:

  • Total balance by source and fund
  • Vested balance by source and fund
  • Current investment elections
  • Mutual fund fact sheets from Morningstar
  • Rate of-return
  • Transaction history
  • Loan history
  • Statements
  • Forms

Participants can also change investment elections, initiate transfers, model loans, use a retirement plan calculator and update personal information.

Where will the plan assets be held?

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.

What timeline can I expect when establishing a new or existing plan at Employee Fiduciary?

Time Line Existing Plan Takeover - Download

Time Line New Plan - Download

What services does Matrix Trust Company provide to my plan?

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.

What is the minimum dollar amount/percentage allowed for transactions?

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.

What if I own multiple companies?

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.

What are the contribution limits?

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

How do participants receive benefits statements?

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.

How can participants and sponsors access information on the plan?

We provide both a participant and plan sponsor website.

How are employees trained on how to use the 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.

How are employee and employer contributions remitted to Employee Fiduciary?

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.

Does your firm accept trade instructions by phone?

No. We require that all trade orders are submitted via the participant or sponsor website.

Does the participant website support foreign languages?

The participant website is available in both English and Spanish.

Do you provide SSAE 16 reports on your internal operations, record keeping system and custodial systems in support of a limited scope audit?


Do you have a toll-free number for participants who need assistance?

Yes. The participant helpline (877) 401-5100 is open 8:00am-5:00pm Central Time.

Do you assign a single relationship manager to my plan?

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.

What types of insurance protection can I expect on my investments with Employee Fiduciary and Matrix Trust Company?

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.

What type of investments do you offer?

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.

What fund families does Employee Fiduciary offer?

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.

How do I look up available funds?

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.

Do you offer self-directed brokerage accounts?

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.

Do you offer investment advice?

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.

Are Exchange Traded Funds (ETFs) available through your program?

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.

What are my payment options and when is payment due?

Invoices are submitted on a quarterly basis and can be paid using several methods:

  • ACH
  • Credit Card
  • Deduct from Assets
What are Employee Fiduciary fees?

Plan Establishment Fees:

  • New (Start-Up) Plans – $500
  • Existing (Conversion) Plans – $1,000

Annual Administration Fees:

  • Plans with 1-30 eligible employees – $1,500 per year
  • Plans with > 30 eligible employees – $1,500 per year + $30 per year for each additional eligible employee
  • Asset-based fee of 0.08% per year
How do clients pay your 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.

How are Employee Fiduciary fees calculated?

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.

Does your firm refund any revenue sharing payments it receives from plan assets?

Yes. Revenue sharing payments can be used to offset our fees or reallocated to participant accounts

Can all expenses be deducted from plan assets?

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.

Are there any minimum account balances?

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.

Are there any fees associated with Matrix Trust Company?

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.

If I bring multiple plans to Employee Fiduciary will I have the same contact person?

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.

How will my fees be paid?

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.

Do you offer enrollment material?

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.

Can I rebalance the plans model portfolios on the plan’s website?

Yes. An instruction manual will be provided in your enrollment kit.

Can advisory fees be paid out of plan assets?

Yes. If the plan sponsor chooses to have advisory fees paid from plan assets.

As an advisor, will I have access to the plan’s website?

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.

Will you please describe the ownership structure and any common ownership and/or direct or indirect compensation or benefits received from any service providers you may use or recommend?

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.

Will you please describe a breakdown of your primary sources of revenue?

100% of our revenue comes from recordkeeping, administration and consulting of qualified plans.

What types of retirement plans do you service?

We can service the following types of retirement plans:

  • 401(k) / Profit Sharing Plans
  • Money Purchase / Target Benefit Plans
  • ERISA 403(b) Plans
  • ESOPs (recordkeeping-only)
  • Defined Benefit and Cash Balance Plans (recordkeeping-only)
What type of credentials do your employees have?

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.

What is your average plan size and is there a minimum?

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.

What differentiates Employee Fiduciary from competitors?

Key differentiators include:

  • We offer over 30,000 mutual funds with no mark up or proprietary investment requirements, including all the Vanguard Funds.
  • We charge low, transparent and flat fees.
  • We do not retain any “revenue sharing” payments and forward all money received from mutual fund companies and other sources to the plan or to participants.
  • All customers have a dedicated client relationship manager for their plan.
  • Our experience. Since 2004, Employee Fiduciary’s 401(k) experts have been helping small business owners create and operate the right, low cost plan based on their needs. With nearly 50 combined years of experience, our senior leadership team has been at the forefront of ensuring the satisfaction of every client while guiding them through the ever-changing 401(k) landscape.
Please provide some key statistics on how many retirement plan clients Employee Fiduciary services.

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.

How many employees do you currently have?

As of May 2021, we employ over 80 full-time employees.