Fiduciary Plan Design - the only logical choice

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IS YOUR PLAN'S ADVISER A 3(38) ADVISER - AND IS THAT FIRM LOOKING AT THE BUSINESS AS A WHOLE?

DON'T LEAVE THIS IMPORTANT DECISION TO THOSE BROKERS, REPS, AND INSURANCE AGENTS OUT THERE THAT CALL THEMSELVES "FINANCIAL ADVISORS."


When helping with THIS important aspect of your business, NPV Advisory acts as an ERISA section 3(38) adviser - MORE important we view ALL business and business owner objectives as the drivers in plan design.


The Employee Retirement Income Security Act (ERISA), the body of law that governs qualified retirement plans, such as 401(k) plans, has a mechanism by which a plan sponsor can shift its responsibilities and liabilities for the selection, monitoring and replacement of plan options to the adviser. 


NPV Advisory accepts that responsibility - Very Few Plan Designers are willing to be fiduciaries.


HAVE YOU REALLY CONSIDERED ALL OF THE PLAN DESIGN OPTIONS?

 

The starting point is to understand the basic plan types:

  • Traditional IRAs
  • Roth IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • Qualified Plans (profit sharing, 401(k) plans, etc.)
  • Defined benefit pensions
  • 401(A) Non-Qualified Deferred Compensation
  • 403(b) Accounts
  • Qualified Excess Benefit Arrangements
  • 529 Plans
  • Education Savings Accounts
  • 457 Plans for government entities
  • Supplemental Employee Retirement Plans (SERP)
  • Money Purchase Plans
  • Employee Stock Ownership Plans

But let's not stop there...

Don't implement a "cookie-cutter" plan.

  • Vesting schedules, 
  • how any profit sharing might be allocated,
  • whether or not employee turnover is high,
  • loan and hardship provisions, 
  • who should participate, 
  • distribution options, 
  • securing non-qualified deferral plan benefits, 
  • makeup of employee profile between highly compensated and non-highly compensated, 
  • whether to include designated Roth accounts, 
  • family members in the business, 
  • flexibility of rolling into other tax deferred accounts, etc., etc. ... 

ALL of these things (and more) should be considered