You'll need to select one of each of the 401k Companies listed below for you to get started with a 401k. If you need recommendations for any of the provider types, we can help with that too. After we go through the companies involved in setting up a company 401k, we'll talk about what your next step should be.
Retirement plans are a team sport. If you’re ready to start a retirement plan we want to help you understand the various retirement plan providers so you can keep the players straight and understand their roles. We recommend that companies look for providers who are an expert in their respective role, and who communicate openly with the other plan providers. This will create a well-run plan and allow peace of mind for the company sponsoring the plan.
TO START A 401K - YOU'LL NEED:
1.) A PLAN SPONSOR (that's you or your client if you are a financial advisor)
The company that offers the plan for their employees is considered the Plan Sponsor. When starting a retirement plan everything with respect to the design of the plan should revolve around what the Plan Sponsor's needs are. Ultimately the day-to-day responsibility for the Plan lies with the sponsor, but a good TPA will help you with these responsibilities:
Plan Sponsors rely on the assistance of professionals to help them fulfill their responsibilities. Those various providers are described below.
2.) A FINANCIAL ADVISOR
The financial advisor is a person or company that helps you select the right investment mix and provider for your plan. A responsible advisor will perform some of the following functions:
3.) AN INVESTMENT CUSTODIAN
Investment Custodians hold the money for the Plan and its participants. Custodians perform a variety of functions for a Plan including some or all of the following:
4.) A TPA (Third Party Administrator) - That's what we do.
An independent TPA assists the Plan sponsor in meeting their responsibilities for setting up and administering the plan. We will design the plan around your needs, set it up and maintain it. Just like a good CPA helps you follow tax law, a good TPA helps you follow ERISA laws. The TPA reviews activity during the year to confirm that the Plan Sponsor followed the rules and regulations including:
We are the premier online 401k company, we answer the phone and know our clients by name, not account number.
5.) A CPA
Plans with more than 100 eligible Participants must have the Plan’s financial statements audited by a CPA each year. Auditors have very specific guidelines, and they provide a valuable service to the Plan Sponsor to confirm eligibility, payroll deposits, posting details and the like. They confirm that the correct data is being provided to the TPA for testing purposes, that the investments are being reported accurately on the financial statements and reports being provided to the government.
THINGS TO CONSIDER
The reasons why you’ve decided to learn how to get a retirement plan set up for your company will help you design the right plan for you. Remember the four “R”s to help you get a handle on what’s important to you and decide how to get a retirement plan set up that meets your needs:
CHOOSE PLAN DESIGN AND DOCUMENTS - design options are listed below, but if you'd rather just have someone walk you through each of these one the phone with you, request contact here for personalized help deciding on these options.
Once you have outlined your goals for what the plan will look like, you can figure out how to have your retirement plan set up to fit your needs. Even prototype plans offer options for employers to draft a semi-custom document:
Give us a call at 916.922.3200 and we will get you on your way. Having multiple providers for your Plan, like the ones listed above, brings strength in each specialty to provide you with the best possible outcome. 401k Companies who bundle services may have a weak link that isn’t identified until you are already deep into the process – then it may be difficult or impossible to swap out that weak player.
TAKE ACTION!
We would be proud to help walk you through the process of starting a retirement plan, and help you find the right providers for your needs. Click here to have one of our pension consultants contact you!
You might also like:
The Complete Guide to Choosing, Setting Up & Maintaining A Company Retirement Plan
Best Retirement Plans for Small Business Owners