Our small business solution is exactly what it sounds like. Belpointe has designed a 401k plan to be cost effective and efficient for Small Business.
FAQ
Take our assessment to determine how fiduciary outsourcing can benefit your plan.
FAQ: Small Business 401k
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There are 2 partners involved in managing this small business solution. Belpointe LLC (3(38) investment monitoring and plan advisor) and 401kGO (record keeping, administrator, TPA, 3(16))
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This plan was designed to be efficient and cost effective for companies looking to start up a 401k as well as smaller companies that already have retirement plans.
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There are only 3 fiduciary responsibilities left for the individual business owners under this plan
- monitor service providers,
- submit payroll in a timely fashion
- provide updated census data to a record keeper.
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Yes you must be a member of a participating chamber to join this plan.
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Yes you can keep your current advisor as the participant advisor for your company if you choose to do so. Your advisor must also be a member of a Connecticut Chamber of Commerce.
FAQ: Mid Sized Aggregation Plan
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This plan was designed for previously established plans who are looking for a more transparent/cost efficient model, who are interested in reducing administrative responsibilities/fiduciary risk.
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There are multiple partners involved in managing this MEP. Belpointe acts as the 3(38) investment manager and plan advisor. We use an independent record keeper and custodian, an independent TPA/3(16) service provider, as well as a participant adviser who can differ from employer to employer.
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The mid sized aggregation plan was designed to provide a custom, flexible plan design. It capitalizes on the benefits of fiduciary outsourcing, without an MEP structure. This plan is designed as a single employer plan with individual IRS 5500 filing per employer.
FAQ: Multiple Employer Plan (MEP)
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This plan was designed for companies with existing plans, who are approaching the eligible participant limit, to require an annual financial audit (this audit is a limited scope financial audit, NOT a full IRS audit).
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The Connecticut Chamber’s Multiple Employer Plan is a multiple employer plan designed exclusively for Connecticut Chamber of Commerce members across the state.
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A multiple employer plan is a 401k plan that allows unrelated employers to aggregate plan assets to participate in economies of scale and to obtain the benefits of acting like a larger plan.
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- One of the key differences is our fee structure. The plan advisory fees charged to each plan decrease as the total assets of the MEP increase. Each employers fee is based on the aggregate plan assets not on their individual company plan assets. This allows us to lower fees for every plan as more members join or assets increase due to market growth and additional contributions.
- Another cornerstone of our MEP is collaboration with other advisors. Although Belpointe will be acting as the plan advisor, we have separated the plan advisor fees from the participant advisor fees for the sole purpose of letting adopting employers maintain the existing service and relationship with their current advisor.
A major benefit to an MEP is that it reduces the fiduciary liability for the individual company plan sponsor. It does this by outsourcing administrative responsibilities, employee eligibility tracking, distribution processing, plan compliance, nondiscrimination testing, annual reporting and participant enrollment to a TPA (third party administrator) who specializes in these tasks. The TPA 316 also prepares and signs the form 5500. Along with reducing risk, this reduces the workload for a company’s HR professional saving them time to focus on other priorities.
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There are multiple partners involved in managing this MEP. Belpointe acts as the 3(38) investment manager and plan advisor. We use an independent record keeper and custodian, an independent TPA/3(16) service provider, as well as a participant adviser who can differ from employer to employer.
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The MEP reduces fiduciary liability for the individual company plan sponsor by outsourcing administrative responsibilities, employee eligibility tracking, distribution processing, plan compliance, nondiscrimination testing, annual reporting and participant enrollment to a TPA (third party administrator) who specializes in these tasks. The TPA also prepares and signs the form 5500 as the plan sponsor. Along with reducing risk, this reduces the workload for a company’s HR professional saving them time to focus on other priorities.
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Typically the MEP structure allows employers to reduce administrative fees, advisory fees and in some cases investment fees. Each employer has a unique situation, so Belpointe will do a comparison of our plan’s fee structure with your current 401k fee structure to see if our MEP is a good fit for your company.
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There are only 3 fiduciary responsibilities for the individual business owners who join the Chamber MEP
- monitor service providers
- submit payroll in a timely fashion
- provide updated census data to the record keeper
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Our fee structure is flexible. The fees from service providers are a combination of flat fees, per head fees, and assets under management (AUM) fees. These fees can be paid from the assets of the plan, as a corporate billable or a combination of the two.
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Yes, There are three levels of 3(16) administrative services available:
- Supplemental, non-fiduciary (“ministerial”) support services such as document mailing and “hands free” processing of loans and distributions.
- Limited scope acceptance of some of the functions of the plan administrator but not all.
- Broad scope acceptance of the administrator role, to include being named as the plan administrator in the plan document and other governing documents and contracts.
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The recordkeeper’s responsibilities include allocating the assets of your plan to participant accounts, executing participant trades, maintaining contribution records, providing internet access to accounts, and providing statements at least on a quarterly basis.
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The 3(38) advisor has discretion to make investment decisions and model allocations. This allows the plan sponsor to reduce liability, as they offload fiduciary risk for investments decision making to the advisor; however, employers retain a fiduciary duty to choose a good 3(38) and monitor performance of the advisor.
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Yes, you must be a member of an adopting chamber of commerce to participate in the MEP
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Yes you can keep your current advisor as the participant advisor for your company if you choose to do so. Your advisor must also be a member of a Connecticut Chamber of Commerce.
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If a member’s chamber fees lapse, the member will be contacted to see if they wish to maintain membership. If the employer no longer wishes to be a chamber member, their plan will be removed from the MEP with proper notice and Belpointe will advise on the stand alone 401k plan. However all plan fees and the fee structure are likely to change.
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Redwood Private Wealth | 3930 E. Ray Road, Suite 155 | Phoenix, AZ 85044