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Advisor Portal

Keep the Benefit,
Eliminate the Burden

Is your 401(k) a benefit or a burden?
Offering a 401(k) retirement plan for your employees is a necessary benefit for attracting and retaining quality employees; however there has never been more regulatory pressure than there is today for employers to properly address fiduciary responsibilities and proper plan administration. Increased regulatory compliance and audit risk in recent years are creating significant complexity for employers with no comprehensive service options to minimize that burden until now.

Each business has their own set of challenges in competing today. Below are some of the challenges that have brought employers to 401k SAFE:

  • Eliminating key employee involvement in non-profit generating functions
  • Mitigating personal liability of owners and management in regards to the 401(k) plan
  • Being accountable to an expert standard for investment oversight
  • Addressing concerns with potential audits and compliance
  • Current service providers cannot address the need

401k|SAFE Services

Below are the highlighted services we provide when you outsource your 401(k) to 401k SAFE:
Fiduciary Protection
  • Serve as 3(16) Plan Administrator
  • Monitor institutional investment managers
  • Monitor ERISA 3(21) and 3(38) plan fiduciaries
  • Retain leading ERISA attorneys for plan oversight
  • Plan due diligence prior to joining to ensure plan is in compliance
  • Ongoing validation that fees and expenses are reasonable
  • Participant deferrals and Plan contributions deposited directly to institutional custodian
Plan Communication
  • Provide enrollment information to new participants and coordinate enrollment support
  • Distribute all required notices and plan documentation (SPD, Safe Harbor, SAR, etc.)
  • Secure web portal for all plan documents, quarterly investment reviews, fiduciary updates
  • Disseminate annual 404(a)(5) Fee Disclosure to participants
Plan Administration
  • Complete, sign and file annual 5500
  • Track eligibility and send enrollment packets for new participants
  • Administer distributions for terminated employee accounts
  • Administer participant loans and hardships
  • Administer defaulted participant loans
  • Flexibility with working with multiple payroll systems or providers
  • Periodically reconcile payroll data
Participant Servicing
  • Phone support for participant questions and requests
  • Review and process loan requests and hardships
  • Process requests for QDRO's
  • Process participant distributions and rollover requests
  • Assist participants with plan information and web navigation

  • 2008 - U.S. Supreme Court changes legal basis for litigating 401(k) plans, allowing individuals to seek damages against plan sponsors.
  • 2009 - The Department of Labor added 1,000 audit enforcement agents, a nearly 10-fold increase in the number of agents auditing 401(k) retirement plans.
  • 2010 - DOL's enforcement division created the Contributory Plans Criminal Project (CPCP), which is the agency's first national criminal enforcement project.
  • 2012 - The fee disclosure rules, also known as the 408(b)2 regulations will take effect requiring plan sponsors to take a more active oversight role of plan fees and expenses.
"An estimated 70% of retirement plans audited by the Department of Labor (DOL) in 2009 and 2010 were fined, received penalties or had to make reimbursements for errors" Read more...
Source: "Plan Sponsors Getting Big Fines from DOL", Jim McConville, Financial Advisor Magazine, February 21, 2012
"Even the most diligent employers are often ill-equipped to deal with the regulatory complexities of qualified retirement plans because they lack the internal resources to execute their fiduciary responsibilities."
Source: Fred Reish and Bruce Ashton, Partners with Drinker, Biddle & Reath, LLP, and recognized as two of the leading ERISA attorneys in the U.S
"We take great comfort in knowing that outsourcing with 401k SAFE has substantially mitigated our exposure as a fiduciary for our 401(k) plan. It has also allowed me to focus my time in areas other than 401(k) administration."
Source: CFO with Florida-Based Pharmaceutical Company
1919 Oxmoor Rd Suite 104 Birmingham, Alabama 35209