TPC 401(k) vs. Traditional 401(k) options
All of the benefits of a 401(k) plan, without any of the hassle! A 401(k) is a great benefit to your employees, but the administration and paperwork can you leave you wondering if it is all worth it. Take a load off by becoming part of The Payroll Company 401(k).
Who is the Plan Sponsor?
- Traditional 401(k) - 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?
- Traditional 401(k) - 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?
- Traditional Plan - Census reporting processed by the Employer
- TPC 401(k) - TPC processes all Census re poring.
Who handles Contribution Reporting?
- Traditional Plan - Contribution Reporting is the responsibility of the Employer.
- TPC 401(k) - TPC takes care of all Contribution Reporting.
Who takes care of Form 5500?
- Traditional Plan - Form 5500 is processed by the Employer or Third Party.
- TPC 401(k) - TPC files one Form 5500 on behalf of the entire trust.
Is Discrimination Testing Required?
- Traditional Plan - Yes.
- TPC 401(k) - Is a Safe Harbor plan and does not need to go through discrimination testing.
What is the Cost Index?
- Traditional Plan - Plans very from a low cost structure to high depending on the complexity of the plan.
- TPC 401(k) - The plan is designed so that all costs are low and fees are completely transparent.
What is the maximum employee contribution deferral?
- Traditional Plan - The lesser of $16,500 for 2009 or 100% of compensation.
- TPC 401(k) - The lesser of $16,500 for 2009 or 100% of compensation.
Are all associated fees transparent to the participants?
- Traditional Plan - No.
- TPC 401(k) - Absolutely.
