The all in one 401(k) retirement solution provider and Record-keeper for your Business
Most small retirement plans appoint the employer as plan administrator. Management of the entity may designate an individual or an entity to perform these functions. Due to the complexity and timing involved, most small employers appoint an independent third-party to assist with the plan administration and record-keeping services.
Our IRS approved 401(k) plan and bundled record-keeping services are specifically customized to small businesses with less than 50 employees, which allows us to better understand their specific needs and concerns.
The plan record-keeper is the person or entity responsible for the general day-to-day plan operations and administration. Record-keeping services include the following:
- Determining when an employee becomes eligible to participate in the plan
- Providing complete, accurate and timely information and approvals in the manner and within the time frames reasonably requested by the Company
- Providing all necessary employee census information for new employees and census updates for existing employees
- Computing plan contribution amounts
- Maintaining plan records
- Preparing and filing plan tax forms
- Preparing IRS Form 5500
- Performing actual deferral percentage (ADP) test (IRC Sec 401(k)(3) )
- Performing actual contribution percentage (ACP) (IRC Sec. 401(m) quarterly), if applicable
- Performing minimum coverage test (URC Sec. 410(b)(1)(A) and (B)) annually, if applicable
- Performing top-heavy test (IRC Sec. 416) annually, if applicable
- Monitoring elective deferrals limit (IRC Sec. 401(g)), if applicable
- Providing employee notices, information, and reports
401(k) record-keeping services should be performed scrupulously to ensure that all IRS and ERISA rules and requirements are satisfied so that the retirement plan remains in full compliance. Recent IRS and ERISA rules require meticulous record-keeping in order to track the various activities of the retirement plan and its participants. It is important that all retirement plan record-keeping be coordinated in order to track, separately, employee deferrals and after-tax voluntary contributions as well as employer matching, qualified non-elective and profit sharing contributions. Distributions may occur on separation from service, as loans or hardship withdrawals; since each of these involve different types of transactions, it is vital that a record-keeping service be in place to track all these activities separately.
In general, plan record-keeping services can be performed by various types of service providers. They can be performed in-house, by a third-party administrator, a separate record-keeping firm or a bundled service provider. Basically, in-house record-keeping will be feasible only for larger employers. In the case of small or mid-size businesses with less than a 100 employees, it is far more cost effective to have a third-party perform all plan record-keeping services.
401K Administration Services works directly with numerous investment providers committed to superior service. By combining our core record-keeping expertise with investment specialists who complement those strengths, we are able offer an “unbundled” investment approach.
By offering an “unbundled” approach, these investment providers are able to offer the following high quality options without any conflict of interest:
- A high quality – well diversified investment programs
- No fee and load fund options
- Easy to operate online account platform
- Helpful communication and education tools
- Dependable advisor support
401(k) Administration Services is pleased to offer services in partnership with several providers who consistently meet and exceed these standards. Additionally, we continually actively observe the quality of services and their ability to meet plan sponsor needs and expectations. We have a very close working relationship with Fidelity, TD Ameritrade , and Scottrade who have provided our clients with an individualized well balanced and diversified investment platform.
Let’s us take care of your Retirement Plan so that you can take care of your business!