We know 401(k) plans can be confusing. To demystify them for you and your employees, our plan administration services are designed to be consultative, transparent, and timely. Key features of our plan administration services include:
The pairing of affordability and customer service is a hard combination to find these days. Our consultative services include a dedicated relationship and custom plan design.
401(k) providers come in two basic types - bundled or unbundled. Bundled (or "full-service") providers deliver all of the administration services a retirement plan needs - asset custody, participant recordkeeping, and Third-Party Administration (TPA) - while unbundled providers must ally with at least one other firm to deliver all of the necessary services.
Employee Fiduciary is a bundled 401(k) provider. That means we are the only company you need to hire to offer a plan to your employees unless you also want a financial advisor for investment advice.
Employee Fiduciary is employee-owned and fully-independent. Our guiding principles are transparency and simplicity because we know 401(k) confusion often leads to lower investment returns for plan participants and unnecessary time and expense for business owners.
Our services are designed to make it easy for business owners to offer a cost-efficient plan that meets the needs of their employees and company. For more details, please check out our FAQs below or request a proposal.
Starting a new 401(k) can seem overwhelming. We’re going to lay it out for you in a way that’s straightforward and transparent. Here are the steps.
“I can now sleep at night knowing that Employee Fiduciary has no hidden charges. My bookkeeper who processes the contributions each week has commented how simple it is.
Thank you EF”
“We have been very pleased with Employee Fiduciary. They’re responsive and great at demystifying 401(k) management. The fee structure is low-cost and transparent and they offer a broad range of investment options. They’ve worked very well for us.”
“With all of the headaches associated with running a business, you have far exceeded my expectations in completing this conversion process.”
Don't let 401(k) confusion come between you and your retirement. With Employee Fiduciary, you’ll feel confident that you’re not being taken advantage of and are on the right path to retirement.
Have questions about Employee Fiduciary or our services? Check out our FAQ. Need further assistance? Contact us.
Third-Party Administration involves completing the annual tasks necessary to keep a 401(k) plan in compliance with the Employee Retirement Income Security Act of 1974 (ERISA). Under our care, your plan will meet every regulation to the letter of the law, on or before the applicable deadline.
Our services include:
- Keeping your plan document up to date with applicable law
- Completing annual nondiscrimination testing (as applicable)
- Preparing a signature-ready Form 5500 and Summary Annual Report (SAR)
- Calculating year-end contribution allocations
- Preparing any necessary participant notices (e.g., safe harbor 401(k) notice)
A 401(k) recordkeeper is essentially the bookkeeper of your 401(k) plan. A recordkeeper’s responsibilities include allocating the assets of your plan to participant accounts and executing participant trades. We leave nothing to chance when performing this important job, reconciling all participant accounts to the penny each day to ensure no trades are missed.
Our services include:
- Providing 24/7 online account access to participants and the plan sponsor
- Updating share prices, and individual account balances daily
- Processing plan trades, including contributions, distributions and fund transfers
- Preparing quarterly benefit statements
- Originating and maintaining participant loans
- Providing participant fee disclosure notices
At Employee Fiduciary, we don’t sell cookie-cutter 401(k) plans. Instead, we start every plan setup with a consultation where our experts will...
- Walk you through the plan design process step-by-step
- Help you decide if a Safe Harbor 401(k) is right for you
- Discuss plan features that can save you money, minimize admin work, and help you pass annual compliance tests
- Design an optional employer contribution scheme, including non-elective, matching, or profit-sharing contributions
Once your plan is designed, a new business consultant will do all the heavy lifting to get your plan set up.
- Prepare a plan document and Summary Plan Description (SPD)
- Establish participant and trust accounts
- Receive investment approval from the custodian
- Prepare participant enrollment materials
- Establish website access for you and
- Provide website and contribution submission training
Takeover plans only:
- Coordinate the transfer of plan assets
from your outgoing provider.
- Prepare the blackout notice for
- Reconcile the plan assets transferred
from your outgoing provider.
Maybe. The SECURE Act permits an eligible small business to claim a tax credit for adopting a new 401(k) plan and/or a new automatic enrollment feature.
- Qualified startup costs - Before the SECURE Act, a small business could claim a tax credit equal to 50% of their “qualified startup costs,” up to a $500 limit. Now, the limit is the greater of (1) $500 or (2) the lesser of (a) $250 multiplied by the number of non-Highly Compensated Employees (non-HCEs) eligible for plan participation or (b) $5,000. This credit is available for up to three years.
- Automatic enrollment - Small businesses can earn an additional $500 tax credit by adding an automatic enrollment feature to a new or existing 401(k) plan. The credit is available for each of the first three years the feature is effective.
When combined, these credits can total up to $5,500 per year ($16,500 for 3 years).
Employee Fiduciary fees can be paid by the plan sponsor - via Automated Clearing House (ACH) or credit card - or deducted from participant accounts pro rata based on account balance.
About 80% of clients pay our fees by ACH or credit card to help participant accounts grow faster.
Many 401(k) providers limit your investment options to high-priced mutual funds that pay them hidden compensation (known as "revenue sharing"). Not us.
With Employee Fiduciary, you get access to all NSCC-tradeable funds on the market - nearly 30,000 share classes from 377 fund families.
This includes low-cost options such as:
- Index Funds
- Exchange-Traded Funds (ETFs)
You can also elect to include a self-directed brokerage account from TD Ameritrade, which allows you to invest in any fund on the market - even those outside your plan's fund lineup.
With Employee Fiduciary, you have two basic options for professional investment advice - Target Date Funds or a financial advisor. To choose the best option for you plan, you should understand their pros and cons.
Our Knowledge Center provides unbiased retirement plan education for both employers and employees.
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