Mrs401k Launches PEP with No Cost to Employers

Mrs401k PEP, pooled employer plan

Image credit: © Diego Vito Cervo | Dreamstime.com

401kAdministrators.com, first in the country to register as a 401k Pooled Plan Provider with the U.S. Department of Labor, has unveiled a new pooled employer 401k plan through its Mrs401k.com brand, a 401k management reporting system, with no fees or costs to employers.

Investments are provided through self-directed brokerage accounts allowing for investments in thousands of stocks, bonds, mutual funds, passive funds, index funds, exchange traded funds and target date funds. 401kAdministrators.com works with multiple investment providers, all low-cost major U.S. based brokerages, which use state of the art technology and offer no cost, low cost and flat rates for online market and limit orders.

“Even before employer matching or other employer 401k contributions, employers have faced costly administrative and recordkeeping fees that often deterred them from offering a 401k plan at all,” said Craig Lewis Gillooly, Esq., Attorney and CEO of 401kAdministrators.com. “Employer 401k fees are history with our new pooled employer 401k plan. Concerned that many industries could not afford to offer a 401k plan, we have decided to do away with any administrative and recordkeeping fees to employers to encourage widespread adoption of our pooled 401k plans, especially in industries such as hospitality, restaurant, service and retail that have traditionally not offered a 401k plan.

401kAdministrators, founded in 2003 in La Jolla, Calif., serves as the Pooled Plan Provider, plan administrator and named plan fiduciary, prepares all plan documents, forms and notices, conducts enrollment and sets up and monitors the investment accounts, handles distributions and files all plan returns, such as IRS Form 1099R and IRS Form 5500.

The plan has zero ($0) start up and termination costs. Additionally, 401kAdministrators.com receives zero ($0) in sub-transfer agency fees, zero ($0) in 12(b)(1) fees, and zero ($0) in placement fees (i.e. marketing fees, finders fees etc.). Employees are charged 1/4th of one percent annually for the plan itself and may incur additional fees at the brokerage depending on the nature and extent of their chosen investments.

“Saving one or two percentage points a year in costs on the way to retirement makes a huge difference in how much you have accumulated when you finally get there,” Gillooly said.

401kAdministrators.com new pooled 401k plan allows employees to deduct up to $26,000 per year (in 2021) from their taxable income and save or invest that amount tax deferred for retirement. Employers may match or not at their discretion and receive a tax deduction for doing so. All employees are eligible to participate.

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