401(k) Administration Services
Sponsoring a 401(k) plan doesn't need to be stressful or time-consuming.
Third Party Administration (TPA)
There are many tasks that must be completed each year to legally maintain a retirement plan. Nevont Adminsitrators works on behalf of our clients to keep their plans compliant with the Employee Retirement Income Security Act of 1974 (ERISA). Our services are offered year round and are ailabale for employers of any size.
Plan Document:
Nevont Administrators will draft your plan document based on your preferences. As the needs of your organization and regulations change, we will work to keep your plan in compliance.
The plan document should reflect your organization’s objectives in sponsoring the 401(k) plan, including information such as plan eligibility requirements, contribution formulas, vesting requirements, loan provisions, and distribution requirements. As regulations change or your organization changes plan features and/or rules, the plan document will need to be amended.
A 401(k) plan is considered a qualified retirement plan by the Internal Revenue Service (IRS), and as such, must meet certain requirements to take advantage of significant tax benefits. Every 401(k) retirement plan is required to have a plan document that outlines how the plan is to be operated.
IRS Nondiscrimination Testing:
Nevont Administrators provides testing to on 401(k) plans for clients. To give everyone an opportunity to save for the future, a 401(k) plan can’t favor highly compensated employees or key employees (such as owners). Nondiscrimination tests make sure everything is fair by looking at how much of their income different employees defer, how much the company contributes to employee accounts, and what percentage of assets in the plan belong to the highly compensated employees and key employees. According to the IRS 401(k) Plan Overview: “These tests verify that deferred wages and employer matching contributions do not discriminate in favor of highly compensated employees.”
There are two annual nondiscrimination tests a 401(k) sponsor must pass:
The Actual Deferral Percentage (ADP) test
The Actual Contribution Percentage (ACP) test
Generally, plans must also pass a third compliance test, the Top-Heavy test, each year, or else they are subject to additional employer contributions to keep the plan in qualified status
Form 5500:
Most 401(k) plans are required to file a Form 5500 with the DOL to report their financial condition, investments and operations. Unless an extension is filed, the Form 5500 filing deadline is the last day of the seventh month after the plan year ends (July 31 for a calendar-year plans). Since 2010, Employee Fiduciary has processed 100% of these returns on time for timely filing.
Request a Proposal
Complete this form to receive a low-cost retirement plan proposal from
Employee Fiduciary.