Setting up ERISA plans
Plan Design and Selection
Financial firms can help employers choose the most suitable retirement
plan for their business, such as a 401(k), SEP IRA, SIMPLE IRA, or other options. They consider factors like
the company's size, goals, budget, and employee demographics.
Customization
Financial firms can tailor the retirement plan to align with the company's unique
needs. This might involve deciding on contribution limits, vesting schedules, and other plan features.
Regulatory Compliance
Retirement plans are subject to various regulations and compliance
requirements, such as ERISA (Employee Retirement Income Security Act) rules. Financial firms ensure
the plans design and administration adhere to these regulations to avoid legal issues.
Investment Selection and Monitoring
Financial firms can help select a diverse range of investment
options for the retirement plan, including mutual funds, target-date funds, and more. They also monitor
these investments to ensure they align with participants risk profiles and market conditions.
Employee Education
Financial firms can provide educational resources, workshops, and seminars to
help employees understand the retirement plans benefits, investment options, and how to make
informed decisions.
Enrollment Support
Financial firms assist in the enrollment process by providing guidance to
employees on how to join the retirement plan, choose appropriate investment options, and set
contribution levels.
Plan Administration
Financial firms handle administrative tasks such as recordkeeping, contribution
tracking, and ensuring that required documents are filed with relevant authorities.
Participant Communication
Financial firms communicate plan updates, changes, and important
information to participants, ensuring transparency and keeping employees informed about their
retirement benefits.
Fiduciary Support
Some financial firms offer fiduciary services, meaning they take on legal
responsibility for managing the plan in the best interests of participants. This can help protect the
employer from potential liabilities.