401K Analysis & Administration

If run properly, the employer receives some credit from employees in recognition of the benefit being provided to them. Contrarily, a plan that performs poorly, or is hard to work with, can actually hurt the employer/employee relationship. We are here to provide you with the former, rather than the latter. 

For smaller employers, a properly structured retirement plan can provide significant tax and wealth accumulation advantages. Employers must understand that a plan that is run inefficiently or negligently will become a liability to them, rather than an asset. 

How do I know what type of 401k plan will work best for me and my business?

Every company and employer plan is unique. Plans are not a one-size-fits-all matter. We think these questions should be tantamount in your mind when evaluating your current plan:

  • How much does my plan cost?
  • What am I getting for my money?
  • How does my plan’s performance compare to alternatives?
  • Am I maximizing MY benefits in the 401k Plan?
  • Is my plan compliant with Department of Labor and IRS rules and regulations?

Let a Qualified 401k and Pension Administrator show you how to improve service and save you thousands of dollars over your current plan!

401k Analysis and Administration Services

When was the last time you saw your 401k Analysis and Administration or Pension Plan representative? How often do they visit your company and employees? When was the last time you received investment advice that was sound and specific to your needs? TTG Financial will change all of this with regular visits by Registered Investment Advisors who give investor specific advice. 

401k Analysis and Administration Fees

Fees, especially asset-based fees, affect investment performance. Employers have a fiduciary responsibility to make certain the fees they and their employees are paying are competitive. If your plan is a Retail Commissioned-Based Product, then you should look at your fees very closely. It is easy to bury fees or make them confusing enough that you just give up investigating. This is particularly true for plans with a Bank or Insurance Company. 

TTG Financial offers true Institutional (wholesale) Pricing! Here’s an example to compare the two: 

Plan A, a $1,000,000 balance 401k plan, owns shares of ABC Funds. Their annual expenses are equal to 1.2% per year, plus ABC’s R Share fund fees. 

Plan B: A $1,000,000 401k plan, owns shares of ABC Funds. Their annual expenses are equal to .55% per year, plus ABC’s Institutional fund fees. 

These plans may sound similar, and many would say they are similar. But, each year Plan A could pay as much as $10,000 more in fees than Plan B. If each plan were invested identically, assuming an average return of 6% per year, Plan B could have over $170,000 more in the fund at the end of 10 years!

The only difference between the two plans is that Plan A uses a Retail Product versus an Institutional/Wholesale Product in Plan B. That’s a significant difference! It may be worth looking into your current plan to figure out which product you are using. 

401k Investment Options

Although investment management expenses are important, perhaps the most expensive mistake a plan can make is to utilize underperforming investment options or to not have enough options so as to allow their employees to properly diversify. Simply having multiple funds to choose from does not ensure proper diversification. In many cases, employers carry many funds that all behave similarly. TTG Financial uses a proprietary asset allocation program to help employers select the funds that allow for proper diversification. 

401k Structure and Communication

It is not enough to offer diversified investment options with competitive expenses. The employer is also responsible to provide education to its’ employees regarding the specifics of its’ plan as well as education about the investment options it offers. Most litigation with regard to an employer’s retirement plan stems from miscommunications or a simply lack of communication. 

401k Analysis and Administration Experience

As you can see, there’s a lot of responsibilities and options when it comes to administrating your 401k plan. At TTG Financial we are here to help you navigate these waters and turn your plan into a valued asset of your business. 

TTG Financial and its principals have conducted hundreds of 401k and pension educational meetings and have experience to properly communicate the employer’s plan to employees. 

Is Your Plan Administrator a Qualified 401k Administrator (QKA)?

A good place to start may be: What is a Qualified 401k Administrator (QKA)? Qualified 401k Administrators receive their designation from the American Society of Pension Professionals. These individuals have an expertise in defined contribution plans, recordkeeping, nondiscrimination testing, and 401k Analysis and Administration. A QKA will support the needs of the Plan Sponsor and plan participants and interact with the technical aspects of the plan frequently.

Talk with us at TTG Financial to learn more about 401k Analysis and Administration, and find out if our services could benefit you and your business!

401K Analysis & Administration