CONNECT

Address:

155 E Boardwalk, Suite 470
Fort Collins, CO 80525

Phone:

970-225-2001

Fax/Other:

970-225-2095

Plan Management Process

Retirement Income
3(38) Investments
402 Named
Vendor Benchmark
Plan Design
Employee Financial
403 Trustee
Online Document Vault
3(16) Plan

Plan Process Goals:

  • Improve Outcomes – Increase Plan Success Metrics
  • Reduced Liabilities – Fewer ER Fiduciary Responsibilities
  • Comprehensive Plan Governance – Over 100 items
  • Save Time – 3 Hrs. per year
  • Participant Education – Engaging & Convenient

Plan Management Process Summary:

Sponsor Challenge:

•  Using a series of tools, checklists and workflows, 401k Extra and Dynamic Wealth Advisors (DWA) have the objective of efficiently executing a comprehensive process to effect Fiduciary best practices and improve outcomes wherever possible for Sponsors.

•  We provide Sponsors with an online client portal for tracking your plan success and viewing plan documents via the document vault in the client portal.  Our goal is to help make your document vault IRS and DOL audit ready.
 

Sponsor Solution:

401k Extra – (DWA) and team offer Sponsors complete retirement plan solutions that are designed with the following objectives:


1.) To Help Save Sponsors Time and Money; 

2.) To Help Improve Sponsors Plan Governance Structure and Processes; 

3.) To Help Greatly Reduce Sponsor's Fiduciary Responsibilities and Liabilities;

4.) To Help Strive to Improve Participants Understanding and Appreciation for their Retirement Plan;

5.) To Help Strive to measurably Improve Participant's Retirement Readiness and / or Plan Success Metrics – and may cost less than the Sponsor was previously paying.

 

 

 

 

Fiduciary Overview

 

Fiduciary Comparison

 
  • 402 Named Fiduciary –
  • 403 Trustee –
  • 3(16) Admin Fiduciary–
  • 3(38) Invest Fiduciary –
  • 3(21) Plan Fiduciary –
  • 3(21) Plan Fiduciary _
Before



Sponsor

Sponsor

Sponsor

Sponsor

Broker-Agent

Education


 
After



Outsourced

Outsourced

Outsourced

Outsourced

Outsourced

Advice


 
3rd party vendors, not affiliated with 401k Extra or

DWA, provide 402, 403 and 3(16) fiduciary services.
Fiduciary Overview Summary:
Sponsor Challenge:

•  Sponsors often and unknowingly serve as the 402 Named Fiduciary, 3(16) Administrative Fiduciary, 403 Trustee and the 3(38) Investment Fiduciary when they may be able to minimize or eliminate their responsibilities and liabilities by outsourcing these duties to Independent Fiduciaries.  

•  In addition, most financial representatives that Sponsors currently use do NOT serve in a fiduciary capacity leaving the Sponsor to retain the maximum responsibility and liability.  

Sponsor Solution:

•  401k Extra – DWA and our strategic partners offer Sponsors solutions that are designed with the objectives to help reduce or eliminate Sponsor's fiduciary responsibilities and liabilities – and may cost less than the Sponsor was previously paying. 

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.

•  401k Extra – DWA does not provide 402 Named Fiduciary, 3(16) Administrative Fiduciary or 403 Trustee solutions. Third party vendors provide these services when a sponsor elects them.



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Retirement Income

How Can EE's Increase Potential Retirement Income?

VIDEO

 
 

1% Matters a LOT!!!

•  A 1% improvement can dramatically increase your retirement balance and monthly retirement income (see videos above)

•  3 common ways to achieve a 1% improvement in retirement income: 

     1. Reduce Costs

     2. Increase Your Savings Rate

     3. Higher Rate of Return (performance is not guaranteed)
 
Sponsor Challenge:

•  Journal of Employee Assistance Q1 2009 report that employees who are not on track toward achieving their retirement goals are more stressed, sleep less, are more likely to have health related issues and are more likely to skip work. 

•  In turn these symptoms can cost employers higher health care costs, loss of productivity, higher turnover, lower moral, etc... 

Sponsor Solution:

•  Because 401k Extra – DWA serves sponsors and participants from a Fiduciary perspective, we are obligated to do what is in YOUR best interest first.

•  401k Extra – DWA may be able to help Sponsors and Participants money by reducing costs through efficient and competitive processes.

•  401k Extra – DWA's education and communication programs are designed to help Participants increase their savings rates.

•  401k Extra – DWA's plan solutions are designed to help Sponsors and Participants improve their retirement outcomes – and may cost less than the Sponsor was previously paying.

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals to sponsors. 



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402 Named Fiduciary

Are You Your Plan's Named Fiduciary?



 

 

402 Named Fiduciary Overview

  • Complete plan governance and compliance
  • Service vendor selection, monitoring and replacement
  • Owner is 402 Named Fiduciary by default
  • ERISA Statutory exemption available to reduce Sponsor responsibility and liability
402 Named Fiduciary Summary:
Sponsor Challenge:

•  By default, Sponsors serve as their plan's 402 Named Fiduciary.  As a result, the Sponsor retains full responsibility for plan oversight, management, compliance and engagement of service professionals. 

•  This responsibility exposes the owner or key employees to personal liability.


Sponsor Solution:

•  Sponsors may be able to relieve themselves of most of ERISA's 402 Named Fiduciary responsibility and liability by engaging experienced and professional ERISA Fiduciaries.

•  401k Extra – DWA does not provide 402 Named Fiduciary solutions. Third party vendors provide 402 Named Fiduciary services when a sponsor elects these services.

•  401k Extra – DWA's plan solutions may be able to help Sponsors absolve the maximum ERISA 402 Named Fiduciary responsibility and liability allowable by ERISA – and may cost less than the Sponsor was previously paying.

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.



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Plan Design

Potential to Reduce Taxes and Increase Retirement Savings

 

Plan Design Solutions:

  • Does Your Retirement Plan Allow You to Save $200,000 per year?
  • Help Sponsor Accelerate Their Retirement Plan
  • Help Sponsor Reduce Current Income Taxes
Sponsor Challenge:

•  Sponsors (business owners) often want to defer more taxable income and accelerate their retirement savings. However, 401(k) plan rules limit these amounts to approximately $59,000 per year in 2016 for those age 50 or older.

Sponsor Solution:

•  Depending on Sponsor's age and circumstances, Sponsors may be able to defer over $200,000 per year or up to approximately $2.7 million over 10 years.  

•  401k Extra – DWA's plan solutions may be able to help Sponsors accelerate their retirement goals and reduce their tax liabilities – and may cost less than the Sponsor was previously paying. 

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.



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403 Trustee

Who is Your Plan Trustee?


403 Trustee:

  • Does Your Retirement Plan Comply with Trust Laws?
  • 403 Directed Trustee
  • 403 Discretionary Trustee
Sponsor Challenge:

•  By default, Sponsors are the trustee for their retirement plan, imposing personal responsibility and liability on owners and employees they frequently are not trained or equipped to handle or manage.

Sponsor Solution:


•  ERISA provides a statutory exemption allowing Sponsors the ability to outsource Trustee responsibilities and liabilities to experienced ERISA fiduciary professionals in either a Directed or Discretionary capacity.  

•  401k Extra – DWA's plan solutions may be able to help Sponsors reduce Trustee responsibilities and liabilities – and may cost less than the Sponsor was previously paying. 

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.

•  401k Extra – DWA does not provide 403 Trustee Fiduciary solutions. Third party vendors provide 403 Trustee Fiduciary services when a sponsor elects.
 



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3(16) Plan Administration

Who Has Personal Liability for Your Plan Administration?

 

Sponsor Responsibilities Overview:

  • Disclosures: 408(b)(2), 404(c), 404(a)(5), etc.
  • Notices: SAR, SMM, SPD, Eligibility, etc.
  • Payroll, Eligibility
  • Distributions: Loans, Terminations, QDRO's, Hardships, etc.
  • Compliance: Testing, 5500, Audits, etc.
 3(16) Plan Administration Summary
Sponsor Challenge:

•  Even when Sponsors understand how to complete many of their 3(16) Administrative Fiduciary responsibilities, they usually do not understand Fiduciary rules and requirements leaving them personally liable for errors. 

•  DOL reports that approximately 40% of 5500's filed have errors.  

•  Many Sponsors currently serve as the plan's 3(16) Administrative Fiduciary by default.
 
Sponsor Solution:

•  ERISA allows sponsors a statutory exemption to outsource most of their 3(16) responsibilities to experienced and professional ERISA fiduciaries.

•  401k Extra – DWA does not provide 3(16) Administrative Fiduciary solutions. Third party vendors provide 3(16) Administrative Fiduciary services when a sponsor elects these services.

•  401k Extra – DWA's plan solutions are designed with the objective of helping Sponsors absolve the maximum 3(16) Administrative fiduciary responsibility and liability allowable by ERISA – and may cost less than the Sponsor was previously paying.

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.


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3(38) Investments

3(38) Investments – Key Benefits

 

Investments Key Benefits:

  • 3(38) Investment Fiduciary
  • Investment Policy Statement
  • Fiduciary Driven Process
  • Results Focused
  • No Revenue Sharing
  • Lower Cost Potential
  • Custom Solutions
  • Risk Based Model Allocations
  • Asset Types: MF, ETF, Collective Trusts, Target Risk, Target Date, Managed Accounts, Self-Directed
3(38) Investments Summary
Sponsor Challenge:

•  Many Sponsors make their own investment decisions or rely on a financial representative who is not a fiduciary.  As a result, the Sponsor retains responsibility for investment decisions.

Sponsor Solution:


•  Sponsors may relieve themselves of this responsibility and liability by engaging a financial representative who is a 3(38) Investment Fiduciary.

•  401k Extra – DWA's investment process is designed to be independent and client centric, which allows us to serve client's best interests. Also, we can serve as a 3(38) Investment Fiduciary.
 

Investment Process:


•  Client Goals, Time Frame, Risk and Resources Analysis

•  Asset Allocation Alignment with Client Goals

•  Asset Class Assignment and Weights Confirmed

•  Investment Selection (MF, ETF, Collective Trust, etc.)

•  Investment Monitoring, Rebalancing and Replacement



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Vendor Benchmark

How Competitive Is YOUR Plan?

 

Vendor Benchmarking:

  • DOL has increased plan auditors approximately 10 fold
  • ERISA 408(b)(2) Requires Sponsors to prove reasonableness or face significant personal penalties and / or fines.
  • Fiduciary (RIA) vs Suitability Standard (Broker / Ins Agent)
  • Fiduciary Best Practices
  • Conflict of Interest Policy Statement
  • Code of Ethics Policy Statement
Vendor Benchmark Summary
Sponsor Challenge:

•  Sponsors often rely on financial representatives who may not experienced ERISA fiduciaries or fiduciaries at all, which exposes the owner and certain employees to unnecessary personal liability.

Sponsor Solution:


•  401k Extra – DWA's plan solutions help to provide Sponsors with comprehensive vendor benchmark reports which evaluate total plan costs vs similar plans based on participant count, asset size, features, locations & other factors. 

•  We can also benchmark service details by vendor types so Sponsors may be better equipped to make INFORMED decisions about a service provider's fee reasonableness – an ERISA 408(b)(2) compliance requirement.

•  401k Extra – DWA's plan solutions help to provide Sponsors with vendor benchmark analysis needed to help them make informed decisions efficiently – and may cost less than the Sponsor was previously paying.

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.



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Employee Financial Well-Being

EE's Want to Retire, We Can Help!


EE Communication Tools:

  • ERISA 404(c) Compliance
  • Education Policy Statement
  • ERISA 408(g) Participant ADVICE 
  • Employee Surveys, Catch-up Strategies
  • Gap Analysis, Retirement Preparedness
  • Newsletters, Webinars, Videos
  • Education – Communication Calendar
  • Group Meetings, One-on-One Meetings, Webinars & More
EE Financial Well-Being Summary
Sponsor Challenge:

•  Whether Sponsors feel it is their responsibility or not to educate employees regarding their finances, when a Sponsor elects to offer a retirement plan, ERISA 404(c) has minimum education requirements for Sponsors to minimize Sponsor liabilities.

•  Some financial representatives are not equipped or licensed to provide advice, rather they can only provide broad based financial education.


Sponsor Solution:

•  401k Extra – DWA employee education and advice solutions provide Sponsors a statutory exemption (408(g) Participant Advice) while offering participants what they want and need – ADVICE and answers to their questions!

•  Depending on a plan's size, demographics and details, 401k Extra – DWA may advise the Sponsor to use an unaffiliated 3rd party vendor for participant advice solutions.

•  401k Extra – DWA's participant education solutions can help Sponsors reduce fiduciary liability while helping participants get the answers they want and need – and may cost less than the Sponsor was previously paying.

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.



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Online Document Vault

 

Sponsor Document Vault:

  • 3(16) Administrative Fiduciary (RK – TPA, Payroll)
  • 3(21) Plan Advisor 
  • 3(38) Investment Fiduciary
  • 402 Named Fiduciary 
  • 403 Trustee
  • Benchmark Reports and additional Folders
 Document Vault Summary
Sponsor Challenge:

•  Document Access, Consistency and Compliance

•  Are you ready for a DOL or IRS plan audit?

•  How do maintain plan document consistency, accuracy and completeness so that when the DOL or IRS audits your plan, you are prepared – regardless of whether your HR Director left your firm recently or your team didn't properly setup or retain your plan document files? 

Sponsor Solution:


•  401k Extra – DWA's online document vault helps Sponsors maintain consistent plan folders, files and documents annually with the goal to be IRS and DOL audit ready at all times.  

•  Each Sponsor is provided with access to a secure online document vault that captures critical documents from all related plan service providers each year.  

•  401k Extra –  DWA helps Sponsors save time and effort by working diligently with each service provider to retain documents in a uniform and consistent format – and may cost less than the Sponsor was previously paying. 

•  Each plan's costs vary depending on each plan's unique circumstances and multiple factors. Costs are outlined in proposals provided to sponsors.



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