More than half of the 55 million Americans who are not offered a retirement plan through their employers work for small businesses. While many in the industry see this as a major coverage- gap problem, at TPC 401(k), we see it as a great opportunity. We specialize in helping small businesses establish the same high-quality retirement program for their employees that they’d expect working for a much larger company. At the same time, we’re able to keep costs low, while offering service and support that is second-to-none.
How do we accomplish this?
The TPC 401(k) MEP Solution.
What is a MEP?
The TPC 401(k) MEP is an open Multiple Employer Plan which allows multiple, unrelated employers to enter into a retirement plan sponsored by TPC Qualified Plans LLC. TPC Qualified Plans LLC is responsible for administering the plan and serves as the plan sponsor and trustee.
Why the MEP ?
This plan is an attractive option for employers looking to offer a retirement benefit, while reducing the administrative burden and mitigating fiduciary risk and responsibilities for their 401(k) plan. Other advantages to the MEP:
- IT’S SIMPLE – You adopt, we manage! Leave the compliance and oversight of the plan to the experts at TPC 401(k) and you focus on running your business.
- IT’S AFFORDABLE – The MEP provides economies of scale, lowering expenses, allowing us to offer you pricing below industry standards.
- IT’S EFFECTIVE – We will design a plan created with your specific goals in mind.
- IT’S EASY – With on-line enrollment, risk-based portfolios, and education/enrollment support for your participants, it is easy for employees to take advantage of this valuable benefit.
We will help you establish a plan design model to achieve your specific goals, putting you on the fast-track to success:
Goal: Enhance Benefit Offering and Provide for Employee Tax -Savings
Basic 401(k) Plan: A 401(k) plan allows employees to contribute traditional pre-tax deferrals or after-tax Roth. Employers have the ability to make contributions at their discretion. This plan is subject to annual testing which may limit the deferrals of HCE and Owners.
Goal: Recruit and Retain Key Employees and Increase Corporate Tax-Savings
Safe Harbor 401(k) Plan: Along with employee contributions, a safe harbor 401(k) plan provides for an employer match of 4% or a company non-elective contribution of 3%. By providing this contribution the plan satisfies certain non-discrimination rules, allowing the owner and highly compensated employees to contribute up to $18,500 (as indexed), or up to $24,000 (as indexed) for individuals age 50 and over.
Goal: Maximize Owner Retirement Savings
Cross Tested 401(k) Plan: A cross-tested 401(k) plan provides for traditional and Roth employee contributions and an employer profit sharing contribution which is designed with the goal of reaching a total annual owner contribution of $55,000 (as indexed), or $61,000 (as indexed) for those age 50 and over.
Who Can Join the MEP?
Any employer is eligible to participate in the MEP. We have plans that range from start-up to multi-millions from a variety of industries. The MEP is a good fit for companies looking to save money on administrative costs and to have relief from fiduciary liability. The MEP is most appealing to small-businesses due to the administrative cost savings.
How is the MEP Different from a Traditional 401(k)?
Overall, you’ll find the MEP to be more cost-effective than a traditional 401(k) plan. For starters, you don’t have to handle the administrative costs associated with managing your own plan. In addition, we choose from investment options with generally lower fees. And lastly, placing multiple employers into a group has proven much more cost effective when compared to an individual plan.
Ready to discover the retirement plan solutions we can offer you and your business? Contact us today! We look forward to working with you!