401(k) Retirement Plans
Offering a 401(k) plan shows that your small business values more than just the work your employees do on behalf of your company. It demonstrates that you care about and are investing in their long-term wellbeing.
Small and mid-sized businesses sometimes shy away from offering 401(k) plans, however, because some providers make these plans expensive to set up. When you rely on Axcet HR Solutions for retirement plan services in Kansas City, you’ll discover that 401(k) benefits can be robust and accessible for your employees and affordable and worry-free for you.
Competitive employee benefits packages include 401(k) retirement plans – one of the most-coveted job perks. But when smaller companies manage 401(k) plans on their own, it can get expensive fast. They may be required to pay a third-party administrator setup charges and legal fees for drafting summary plan documents, among other costs.
Small businesses don’t have these plan expenses when they engage Axcet HR Solutions, a certified professional employer organization (CPEO), for retirement plan services in Kansas City.
Axcet handles every aspect of setup, oversight and administration without additional cost, and our flexible plan is customizable based on your company’s specific needs and objectives.
We offer a variety of options, including after-tax and pre-tax contributions, along with a strong investment lineup with plentiful choices for your employees.
Participants have 24/7 online access to their accounts and – unusual among 401(k) providers – the availability of free, one-on-one consultation and education by certified financial planners.
Axcet relieves the administrative and compliance burdens of managing a 401(k) plan, which includes handling plan auditing and U.S. Department of Labor (DOL) 5500 annual tax filings.
With Axcet’s retirement plan services, employers can offer high-value 401(k) benefits for employees without worry or extra costs.
Plan Design and Consultation
Before designing a 401(k) plan, Axcet experts meet with employers to learn their retirement benefit goals. For example, some smaller companies may want to maximize contributions for the business owners, while others may prioritize encouraging all employees to participate by establishing matching goals.
Then, we tailor plans to each employer’s individual objectives and manage every complicated detail, such as making sure the plan complies with DOL regulations, including safe harbor rules.
When business owners want to lower their taxable income through contributions or otherwise participate in the company’s 401(k) plan, we make sure that, as required by law, the plan doesn’t disproportionately benefit them. If necessary to achieve this goal, Axcet develops a safe harbor plan to ensure that all employees – regardless of salary level – can equally benefit from the company’s 401(k) retirement plan. This non-discrimination compliance can be difficult to achieve without the kind of specialized expertise Axcet professionals offer.
Axcet’s flexible plan gives employees the option to make contributions to a traditional 401(k) plan on a pre-tax basis or to a Roth 401(k) using post-tax dollars. Employers also may choose profit-sharing opportunities, the amount of their company match contributions and the length of waiting periods for employee participation and vesting in the plan.
With Axcet’s help, smaller companies enjoy not only lower expenses, but also customized 401(k) benefits for employees, higher participation levels and worry-free compliance.
Loans and Hardships
Under Axcet’s 401(k) plan, employees may borrow against the amount they have invested at any time for any reason and avoid taxes and penalties by paying back the loan within a set timeframe. The availability of these loans is an advantage for employees who experience unexpected, short-term financial needs.
Axcet seamlessly facilitates the process for clients, allowing employees to request loans online, setting up deductions from their paychecks, updating payroll accordingly and ensuring employees are not exceeding annual borrowing limits based on their account balances (loans cannot exceed half that amount). We also educate employees about how soon they have to repay the funds and send reminders to help them meet those deadlines.
Employees also may make hardship withdrawals from a 401(k) plan account balance for financial emergencies like a major medical expense, response to a natural disaster or impending home foreclosure. While employees do not have to pay back 401(k) hardship loans, they do have to pay taxes and penalties on the amount they withdraw.
Under either loan scenario, Axcet handles all administration and documentation.
Offering 401(k) benefits for employees requires adherence to complex rules and regulations. Axcet’s retirement plan services in Kansas City alleviate the strain of compliance and ensure your small business’s plan adheres to all regulatory requirements.
Axcet conducts the annual testing required by the federal government to confirm your plan’s compliance year over year – namely, that it does not favor highly compensated employees or discriminate against lower-income workers. Companies that handle this testing in-house and make mistakes or miss a deadline could face hefty IRS penalties or be disqualified from the plan.
Axcet clients can check those concerns off their lists. We take care of all activities required for ongoing 401(k) plan compliance, including:
- Creating summary plan descriptions
- Sending out fee disclosures
- Distributing other required notices that provide:
- transparency around the plan’s investments;
- the costs to employees for being invested in a certain fund; and
- specific fees are for various transactions.
Axcet client companies rest easier knowing that we handle all of these 401(k) plan compliance and related administrative tasks accurately and on time.
There are so many advantages to business owners who rely on Axcet’s expert retirement plan services. We take care of day-to-day administration, including record-keeping, payroll deductions and automated contributions and data submission.
Our client companies also enjoy high-value employee investment options at a low expense ratio, thanks to the significant assets in Axcet’s plan. That saves employers and employees money on plan administration, because 401(k)s often are priced by volume – the bigger the plan, the lower the expense ratio.
Axcet creates a turnkey approach for employers, so they can offer 401(k) retirement plan benefits without the overwhelming task of administering them. All employers have to do is enjoy the goodwill and increased engagement they create by offering employees an efficient and effective way to invest in their retirement.
Small and mid-sized employers who offer 401(k) retirement plan benefits through Axcet gain the peace of mind that comes from knowing they can depend on our fiduciary expertise and responsibility for the plan.
We provide plan oversight – from investment selection and monitoring, to ensuring the plan is fiscally healthy and continuing to operate in the best interest of employees and their beneficiaries.
A fiduciary committee comprised of financial professionals regularly evaluates Axcet’s 401(k) plan to ensure it is meeting or exceeding desired performance standards. The committee tracks and manages funds, taking full responsibility for investments within the lineup and for removing any with below-market performance.
Without Axcet, small business owners must somehow monitor the productivity of plan funds themselves – a difficult and daunting task for those without investment prowess. But with Axcet’s trusted retirement plan services, employers and employees alike have access to a powerful retirement-savings tool in the form of a fully diversified, high-performing 401(k) plan – without ever reading a single Morningstar report. (And, if you just asked yourself out loud, “What is a Morningstar report?,” that is a strong indication you should not try managing your 401(k) plan yourself!)