Short answer – for our clients, wasting money. See below for more info. 3(16) services are administrative services performed by someone else on behalf of the Plan Administrator (usually the employer) – essentially, outsourcing administrative duties such as maintaining and interpreting the plan document, providing notices, etc. We do all of this for our clients, […]
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What is a Prohibited Transaction?
There are certain “transactions” that are not allowed to happen in certain retirement plans. An example would be the Plan Sponsor (say, the owner of a small business) borrowing money from the plan to purchase something – maybe a house or car. These types of transactions are prohibited because the IRS/DOL want to make sure […]
401(k) providers are aiming at the small market…
A recent (8/1/2016) Wall Street Journal article notes that startups are going after the “forgotten” small 401(k) market. No worries here; in fact, it’s probably good for our business because we do a lot of takeovers of plans started by other companies. In a typical scenario, a payroll company sets up a plan for a […]