TPC 401(k) vs. Simple IRA
Wish you and your employees could put more money away? Are your employees asking for a 401(k) and you just don't want to hassle with everything that comes with a 401(k)? The Payroll Company 401(k) is the answer. The simplicity of a SIMPLE plan, with the benefits of a 401(k) plan.
Who is the Plan Sponsor?
- Simple IRA - The Employer is the Plan Sponsor.
- TPC 401(k) - TPC is the Plan Sponsor shifting compliance responsibility from the Employer to TPC.
Who is the Fiduciary?
- Simple IRA - The Employer is the fiduciary.
- TPC 401(k) - TPC is the fiduciary, minimizing the employers exposure to potential lawsuits.
You can learn more about how the Department of Labor defines Fiduciary Responsibility and what it means to you by clicking here.
Who does the Census Reporting?
- Simple IRA - Census reporting processed by the Employer.
- TPC 401(k) - TPC processes all Census reporting.
Who handles Contribution Reporting?
- Simple IRA - Contribution Reporting is the responsibility of the Employer.
- TPC 401(k) - TPC takes care of all Contribution Reporting.
What is the maximum employee deferral contribution?
- Simple Plan - The lesser of $11,500 for 2009 or 100% of compensation.
- TPC 401(k) - The lesser of $16,500 for 2009 or 100% of compensation.
What is the maximum catch up contribution?
- Simple IRA - $2,500
- TPC 401(k) - $5,500
Are all associated fees transparent to participants
- Traditional Plan - No.
- TPC 401(k) - Absolutely.
