Outline of Defined Contribution Plan Administration

We perform the following services in order to provide smooth and efficient plan operation:

  • Requesting employee census information as they are hired so we are able to assist our clients in tracking eligibility and providing “reminder reports” before an employee becomes eligible for plan participation.
  • Maintain participant vested percentage records.
  • Audit each payroll, processing contributions and loan payments according to each participant’s deferral election and/or loan amortization schedule. (Auditing employee deposits before they are submitted to the investment company allows payroll issues to be addressed throughout the plan year. This procedure allows for immediate correction of an error in payroll withholding.)
  • Process fund transfers in accordance with participant elections for non-daily valued assets.
  • Determine eligibility for allocation of employer contributions and forfeitures.
  • Allocate employer and employee contributions.
  • Allocate plan earnings for non-daily valued assets.
  • Allocate forfeitures, if applicable.
  • Review of ADP/ACP test on a monthly or quarterly basis. If either test is projected to fail at plan year end, adjustments can be made before the end of the plan year avoiding costly corrective distributions.
  • Distribution processing: Calculation of distribution amount, preparation of required distribution notices, release forms and IRS Form 1099-R.
  • Loan processing: Set up of loan accounts, preparation of promissory note and amortization schedule and tracking loan repayments.
  • Hardship withdrawal processing: Determination of hardship distribution amount and preparation of application forms.
  • Reconcile trust accounts.
  • Prepare customized participant statements for non-daily valued assets.
  • Monitor participants who are required to receive age 70œ distributions and notify client before distributions are due from the plan.
  • Sending communication to our clients utilizing the Safe Harbor 401(k) feature before the annual Notice is required; allowing them to review their ability to afford the contribution before they are locked into funding it.


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