Keep the Benefit, Eliminate the Burden

A qualified retirement plan is a necessary benefit for attracting and retaining quality employees. However, there has never been more regulatory pressure for employers to properly address fiduciary responsibilities and plan administration for the 401(k) or 403(b) plans they sponsor. This increased regulatory compliance and audit risk have many employers seeking solutions to minimize the compliance burden and risk.

Each business has their own set of challenges in competing today. Below are some of the challenges that have brought employers to 401k SAFE:

  • Eliminating key employee involvement in non-profit generating functions
  • Mitigating personal liability of owners and management in regards to their 401(k) plan
  • Being accountable to an expert standard for investment oversight
  • Preparedness for the potential of a compliance audit
  • Current service providers cannot address the need

401k|SAFE Services

Highlighted services we provide when you outsource to 401k SAFE:

Fiduciary Protection

  • Serve as 3(16) Plan Administrator
  • Serve as Plan Trustee
  • Monitor ERISA 3(21) and 3(38) plan fiduciaries
  • Retain leading ERISA attorneys for plan oversight
  • Plan due diligence prior to joining to ensure plan is in compliance
  • Ongoing benchmarking that plan fees and expenses are reasonable
  • Review and manage all plan documentation to ensure plan is prepared for a compliance audit

Plan Communication

  • Monitor to ensure enrollment information is provided to new participants
  • Oversee the distribution of all required notices and plan documentation (SPD, Safe Harbor, SAR, etc.)
  • Provide secure web portal for all plan documents, quarterly investment reviews, fiduciary updates
  • Annual review of operational and administrative items during the plan year

Plan Administration Oversight

  • Sign and file annual 5500
  • Monitor eligibility
  • Monitor compliance and approval of distributions and loans
  • Provide optional plan audit services for audit status plans at a substantial cost savings
  • Collaborate with plan vendors to ensure best practices for administration
  • Flexibility with working with multiple payroll systems or providers
  • Periodically reconcile payroll data to identify mistakes before they become compliance problems

Why Employers use 401k Safe

Consider the Following:
  • 2008 - U.S. Supreme Court changes legal basis for litigating 401(k) plans, allowing individuals to seek damages against plan sponsors.
  • 2009 - The Department of Labor(DOL) added 1,000 audit enforcement agents, a nearly 10-fold increase in the number of agents auditing 401(k) retirement plans.
  • 2011 - The DOL implemented a random audit process, meaning your plan can be selected for a compliance audit without cause
  • 2012 - The fee disclosure rules, also known as the 408(b)2 regulations require plan sponsors to take a more active oversight role of plan fees and expenses.

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