PAi Retirement Services this week launched what it calls the CoPilot Prime Solo(k) with American Funds, a 401k saving solution designed specifically to support owner-only start-ups and small businesses.
“Owner-only businesses have unique retirement planning needs, and the CoPilot Prime Solo(k) solution meets the specific needs of micro and small businesses,” said Amy Hermann, director of sales and marketing at De Pere, Wis.-based PAi. “We are pleased to work with a trusted firm like Capital Group, home of American Funds, to play such a key role in helping business owners plan for and reach their retirement goals.”
The new 401k investment lineup leverages model portfolios utilizing underlying American Funds and is available to Solo(k) plan sponsors who are interested in CoPilot Prime’s investment fiduciary recordkeeping services in combination with the American Funds.
“Given the need for solutions that satisfy state mandates and improve coverage for employers of all sizes, we are excited to be the investment manager partner with PAi in providing this solution to the marketplace,” said Mike Bockstie, Senior Vice President, Institutional Retirement Sales, Capital Group.
This fully bundled Solo(k) service includes access to PAi’s Customer Care team and CoPilot Prime plan features that make saving for retirement relatable. The personalized alerts system works to keep business owners on track toward retirement readiness, while the Years of Retirement calculator provides information about their savings in years, not just dollars.
A solo 401k plan (or one-participant 401k) plan is relatively new and is a traditional 401k plan that covers a business owner with no employees or that person and their spouse. According to the IRS, the business owner wears “two hats” in a solo 401k plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both:
• Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit of $20,500 in 2022 or $27,000 if age 50 or over
• Employer nonelective contributions up to 25% of compensation as defined by the plan.
Total contributions to a participant’s account, not counting catch-up contributions for those age 50 and over, cannot exceed $61,000 for 2022.
For more information about the new Solo(k) visit pai.com/partner-offerings/american-funds.
SEE ALSO:
• 401(k) Specialist Knowledge Base: Solo 401(k) Plan
• Ubiquity Unveils Streamlined Recordkeeping Solo 401k
• 2022 Safe Harbor 401k Deadline Quickly Approaching
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
