What 401(k) Products Does Complete Payroll Solutions Offer?
If you’re ready to offer a 401(k) plan to help recruit, reward and retain talented employees and have narrowed your choices down to just a few potential providers, including Complete Payroll Solutions, you may be wondering just what we could offer you and your employees.
Complete Payroll Solutions is a 401(k) provider to thousands of companies throughout the Northeast. We offer two approaches to assisting with retirement plans depending on your needs. To help you understand how these different offerings compare in terms of cost, features and services, here we’ll look at each option:
- Retirement plan administration
- Full-service retirement plan services
After reading this article, you’ll know which Complete Payroll Solutions 401(k) offering is right for you so you can pick the best solution for your company.
Complete Payroll Solutions 401(k) Offerings
Retirement Plan Administration
Complete Payroll Solutions’ 401(k) offerings include retirement plan administration by acting as a third party administrator (TPA). If you’re planning to offer a 401(k) plan and want to outsource the day-to-day tasks involved with maintaining it, a TPA like Complete Payroll Solutions can take some of the responsibility off your plate.
Because of the complexities involved in managing a 401(k), relying on a TPA can be particularly valuable to small and mid-sized companies who lack the time and expertise in-house to take on these responsibilities needed to stay in compliance with the Employee Retirement income Security Act of 1974 (ERISA).
What do Complete Payroll Solutions’ TPA services include?
The 401(k) administrative tasks that we handle include:
- preparing and providing informational materials and statements to participants
- approving plan withdrawals and loans
- compliance activities like annual nondiscrimination testing and Form 5500 filing
In addition, our 401(k) TPA offering features:
- Custom plan design: As you design your plan, we’ll help you select employee eligibility, vesting and contribution parameters as well as any employer matching or profit sharing contributions you may decide to offer.
- Easy set up: We’ll draft required IRS-approved plan documents and communicate with your employees to ensure they understand your 401(k).
- Dedicated staff: You’ll have an experienced and knowledgeable retirement professional as a dedicated point of contact who will work with you one-on-one to make sure you have access to the support you need every step of the way.
- Payroll integration: We provide a seamless solution by linking directly with the recordkeeper on your plan for automatic and easy contribution processing to reduce potential regulatory penalties.
- Year-end data collection: Complete Payroll Solutions will handle gathering your employee census data for plan contribution and testing purposes.
If you choose to partner with Complete Payroll Solutions for administration of your 401(k), it’s important to note that you’ll also need to work with a recordkeeper. We can team with any recordkeeper and even help you find one that’s best for your business.
What do Complete Payroll Solutions’ TPA services cost?
Fees for 401(k) administration usually range from $750 to $3,000 a year plus a per-participant fee that may run between $15 and $60 a year for each person enrolled. At Complete Payroll Solutions, we charge a one-time $500 set-up fee and a quarterly plan administration fee of $275 plus $8 per participant.
In addition, there may be other costs involved depending on your plan activity. Our additional fees include $150 per amendment of the plan document, payable at the time the amendment is completed. We also charge a $75 one-time fee for distribution processing and a $150 one-time fee for loan processing, both payable from the participant’s account proceeds.
Full-Service 401(k) Plan Services
While you may be considering only our TPA services to help you manage your plan, another option you have with Complete Payroll Solutions is to take advantage of our full-service retirement plan services. We refer to this fully-bundled offering as Complete K.
With this approach, we’ll handle 4 primary tasks associated with managing your 401(k).
1. 401(k) Plan Administration
With Complete K, we’ll act as the TPA for your plan and take care of all of the administrative services we just described. The main difference with Complete K is that instead of having to select a separate recordkeeper, we bundle these services together.
One of the advantages of Complete K is that it provides integrated recordkeeping services. A recordkeeper is like a bookkeeper for your plan that uses a platform to value your employees’ 401(k) accounts on a daily basis. Employees will log into this platform to access information about their plan. Recordkeeping is also integrated with a trading platform so the recordkeeping fee paid by employees covers trading as well.
At Complete Payroll Solutions, our recordkeeping services include:
- daily valuation accounting
- unlimited intra-account transfers
- integrated contribution processing
- quarterly account statements
3. Fiduciary Oversight
As a plan sponsor, you are responsible for making sure you’re acting in the best interests of the participants. That includes offering a diverse mix of investment options and ensuring reasonable plan fees for your employees. If you lack the time and knowledge to handle this aspect of managing your 401(k), Complete Payroll Solutions can offer a 3(21) or 3(38) fiduciary service. A 3(21) fiduciary advisor can recommend investments but doesn’t have control or discretion over them while a 3(38) fiduciary advisor can help you minimize your fiduciary liability by having full authority to make decisions about your funds.
When it comes to investment options with Complete K, we provide a diverse array of over 2,000 no-load fund choices from dozens of the most respected names in the mutual fund industry such as American Funds, Fidelity, and Vanguard. That means employees can choose from a variety of investment categories and styles to build a diversified retirement portfolio. To make it easier for participants to make investment decisions, we offer online fund data, financial planning software, and other interactive tools.
What does Complete K cost?
Since there are various service components to Complete K, we’ll break down the cost by each category.
- Administration: As we described earlier, we charge a one-time set-up fee of $500 when you decide to offer a plan with Complete K. We also charge a quarterly plan administration fee of $375 plus $8 per participant. Keep in mind that age-weighted and new comparability plans incur an additional $200 annual fee. Other additional fees include $150 per amendment of the plan document, payable at the time the amendment is completed, a $75 one-time fee for distribution processing, and a $150 one-time fee for loan processing, both payable from the participant’s account proceeds.
- Recordkeeping and Trading: To serve as the recordkeeper for your plan, we charge an annual fee of 0.10%-0.50% of the plan assets. This fee is paid for by the plan participants but you still have a fiduciary responsibility to make sure what they’re charged is reasonable and validated.
- Investment Management: Any mutual fund your employees invest in will have fund management fees from the mutual fund company that are taken out of the returns of the mutual funds. The type of fund(s) your employees select will dictate the fee. For example, an index fund may be less costly for employees than an actively managed international fund because there’s less trading.
- Fiduciary Oversight: If you choose to utilize our 3(21) or 3(38) fiduciary oversight service on your plan-level investment choices, there is an annual charge of 0.05% of plan assets.
Optional Advisory Services
With either our retirement plan administration or Complete K, you have the option of accessing support from an in-house financial advisor at Complete Payroll Solutions, or partnering with another advisor. An advisor is an invaluable resource to both you and your employees who can:
- provide guidance and assistance in designing and setting up the plan
- conduct employee education and enrollment meetings to drive higher participation levels
- offer extensive, clear information about your investment options
How to Choose the Right 401(k) Solution for Your Business
With two different 401(k) approaches to choose from, one standalone and one bundled, we know it can be challenging to know what Complete Payroll Solutions 401(k) offering is best for your business.
Our TPA services are a good choice if you:
- already work with a recordkeeper
- want an administrator who specializes in meeting your legal obligations
- provides seamless uploads of 401(k) contributions to your product provider
Complete Payroll Solutions’ Complete K may be right for you if you want:
- to work with one company for your 401(k) plan
- an affordable plan for your company
- flexible plan design and cutting edge technology
Does one of these solutions sound like a good fit for you? The next step is to view our detailed pricing page.