- Can employees defer both pre-tax and Roth?
Yes, but there may be reasons to restrict the plan from allowing both. This is covered in detail during Plan Design.
- Can fees be paid by the company or the plan?
Yes. The employer can elect how to pay plan fees. Some fees must be paid by the employer until the plan assets exceed a certain threshold. Fees are assessed quarterly.
- Does Worker401k/AR receive revenue sharing from the plan investments?
No. In the event a fund is chosen by a 3(38) Investment Fiduciary that includes revenue sharing, revenues will be allocated back to the plan.
- Since Worker401k/AR is a Limited 3(16) Administrator, is the employer relieved of all fiduciary requirements?
No. Worker401k/AR is appointed as a named fiduciary for most administrative duties, which does reduce fiduciary liability for these functions; however, the plan sponsor still has the ultimate fiduciary responsibility.
- Can Owners and Highly Compensated Employees (HCEs) maximize contributions?
Yes (generally). The means and methods of designing the plan to allow for this, and making it a financially realistic option, are covered in detail during Plan Design.
- What types of employers can utilize Worker401k/AR?
An employer that wants to utilize their 401(k) plan as a tool for their company. Properly designed, a 401(k) plan can be used to:
- attract and retain specific employees
- maximize contributions for owners and Highly Compensated Employees (HCEs)
- comply with prevailing wage regulations in a cost-effective manner
Which objective(s) are of most importance to a company, and how the 401(k) plan accomplishes them, are covered in detail during Plan Design.
- Does Worker401k/AR prepare the plan’s tax return (Form 5500) and Summary Annual Report?
- Where will plan assets be held?
Plan assets are held at MG Trust (d/b/a Matrix Trust Company), who serves as plan custodian.
- What is the process for participants receiving benefits statement?
Quarterly participant statements are posted online at the end of each calendar quarter. These quarterly statements are also printed and mailed directly to each participant.
- Do you offer investment advice?
No. Investment advice is available via the Investment Advisor Representative (IAR) of a Registered Investment Advisory (RIA) firm.
- How are sponsors and participants trained about their plan?
We utilized a variety of training vehicles:
- group employee meetings (offered quarterly or as needed)
- one on one employee meetings (with the plan’s Investment Advisor Representative)
- instructional manuals and booklets (both participant and sponsor)
- instructional videos (both participant and sponsor)
- remote training session capability