Plan Sponsor 401(k) Features

Plan sponsors (employers) also determine and use specific features that help them either manage the plan or support a retirement plan objective.

These can include:

• Auto-enrollment
• Compliance and year-end checklist tools
• Payroll Simplicity
• Automatic Pricing Discounts
• Automatic IRA rollovers
• Signature-Ready Form 5500s

Common features descriptions are further explained below.

Auto-enrollment

Automatic enrollment is a simple way to help your employees join your company’s 401(k) plan. Your employees are automatically enrolled in your plan, though they can opt out at any time. You determine what percentage of each employee’s gross pay to put in on a tax-deferred basis (we suggest 5%) into a qualified default investment alternative (QDIA), and that’s it.

A 2017 U.S. Census Bureau study found that of the 79% of Americans who are eligible to contribute to a 401(k), only 41% do so. Using the auto-enrollment feature can help to encourage more saving for your employees and potentially even reduce their tax burden.

Automatic Pricing Discounts

As your 401(k) plan assets grow, so do your savings. Once certain asset milestones are hit, your pricing is automatically adjusted to ensure your investment management pricing is appropriate.

Payroll Simplicity

Our 401(k) plan administration provides employers with comprehensive reporting and tools to ensure your retirement plan’s payroll is processed accurately, efficiently, and timely.

Our recordkeepers offer three payroll data submission methods for your ultimate convenience.

• Payroll file transfer - Upload your complete payroll file directly through your employer recordkeeping website portal
• Direct entry through the employer website - Enter your plan’s payroll contributions via the online interface within the employer website
• Payroll vendor interface - Our recordkeepers can integrate directly with many external payroll providers which will allow you to focus on other business needs