401(k) and Investment Options

Employees Only is a Full-Service HR Management Company

Offering investment options such as 401(k) to your employees is crucial as you try to attract and retain top talent.  This is why Employees Only has partnered with one of the top firms in the field of 401(k) design, implementation and service.  With over 50 options from which to choose, ranging from guaranteed funds to aggressive international stocks, we can create a custom-tailored plan designed to fit both the business and the employees.

Employer Advantages

Your Employees Only retirement plan will produce multiple benefits including:

Expert Administration with Less Expense

Your organization avoids paying the fees for annual testing, annual 5500 return filings, preparation of plan document and other third party administrator fees. Funds are deposited bi-weekly in employee accounts.

A Retirement Savings Plan - Just right for your organization

Your Employees Only retirement plan will be customized to fit your organization’s specific needs, including enrollment times (quarterly), profit sharing components and matching options. Alternate investment opportunities can be included to suit your needs. Employees may invest pre-tax up to 15% of their income to the maximum government allowance.

Individual Counseling and 24/7 Account Access:

Independent, licensed financial advisors will meet one-on-one with employees. We offer individual allocation of funds for each employee, Internet access for employees to view funds and receive daily updates and make changes to their accounts (an 800 number is also available for employees to make changes). Matching plans and Profit Sharing Options as well as ongoing and discretionary company matching options available.

Plan Compliance:

Semi-annual testing of your plan to evaluate your results for 401(k) compliance. A safe harbor feature and other options to assist in plan compliance, and to help management staff maximize their contributions. For maximum advantage to owners, profit sharing plans are integrated with Social Security.

Employee Advantages

Your employees will enjoy numerous advantages with our plans including:

  • Wide variety of investment options to choose from
  • Loan options available
  • 24×7 online portfolio access
  • Self-directed
  • Pre-allocated portfolios
  • Access a registered investment advisor
  • Weekly email account balances and market commentary
  • Low cost participant fee

Frequently Asked Questions

 A 401(k) plan is a voluntary, pre-tax savings retirement program. Under current plan provisions, eligible employees can elect to have a specific deferral amount of their pay deposited into the 401(k) plan, up to a current maximum of $18,000 and an over 50 age of $6,000 additional ($24,000) per year. The income earned on the 401(k) account is not taxed until you withdraw it.
 If you plan allows 401(k) Roth contributions, you can defer after tax monies to invest and grow tax-free. After reaching 59 ½, all the money that is withdrawn is tax free.
 The Employees Only 401(k) plan offers you a wide range of investments you have the choice of many different mutual funds specializing in growth, aggressive growth, fixed income, money market and international stocks and bonds
 Yes, there are restrictions since 401(k) plans are designed to encourage long-term savings. Since the money you withdraw is subjected to income taxes and a possible 10% penalty if you are under 59 ½ years of age at the time of withdrawal, many individuals will take a loan or hardship withdrawal from their 401(k) accounts to help them purchase new homes, make home improvements, pay for un-reimbursed medical expenses, pay for tuition and to pay for funeral expenses. You can also take a withdrawal if you separate service from the employer, but taxes and penalties may apply. If you default on the loan, you may be responsible for taxes and penalties.
 Employees Only has designated a licensed financial planner as an agent for our 401(k) plan.
 You can take up to 50% of your vested balance with a minimum loan amount of $1000. You can have up to 10 years to repay a loan if used for a down payment for a purchase of a new home or 5 years for all other reasons. The loan is repaid by a payroll deduction and all the interest earned is paid back to you and deposited into your 401(k) plan. There is a loan-processing fee of $75.00. The loan will take approximately 5 – 10 business days, from the time the 401K Company receives the application to process. Once the application is approved, you will receive a check. You can contact Employees Only for an application and further information.
 Employees Only submits all testing information to our Third Party Administrator on an annual basis. This is submitted in mid-January and all testing results are complete and forwarded to Employees Only within a month or two. The compliance testing is performed on each client individually. Once the results are determined, we will contact you to let you know if you passed or failed. The Top Heavy rules are as such: the Highly Compensated Employees which are determined by all owners and family members of owners or any employee that owns more than 5% of the company or in the top 20% of compensation and made over $120,000, when their annual contributions exceed the annual contributions of all non-highly compensated employees, the plan is generally considered top heavy and could possibly fail the testing. There are other factors that are also tested to determine the final result. If your group does fail the compliance testing, any excess contributions that were made for that year could be returned to the designated employees.
Yes, you can adopt a Safe Harbor. A Safe Harbor allow employers to guarantee their compliance in the 401(k) plan by the following two ways: First option is you would be required to provide a match of 4% to all participating employees. It is broken out as 1% on the first 3% and ½% on the next 2%. The other option is a 3% contribution for all eligible employees even if they are not currently participating. All matching contributions for the employees in a Safe Harbor are immediately vested. Just providing the match will not guarantee your compliance. You must also adopt the Safe Harbor. There are only certain times when a safe harbor can be adopted to put into place. If you are interested, please contact Employees Only for more information.

How is Employees Only Different?

Our 401(k) plans and investment options reside within a multiple employer plan which helps to reduce the responsibilities of our clients so that they can spend more time concentrating on their business.

Want a FREE Custom Quote?

To receive a no obligation quote that contains a customized solution of Investment Options designed to meet your unique needs, Contact Us today.