I read numerous posts on this site and other sites and have some understanding of what I need in a 401k plan for a small business with a highly compensated owner and other non HCE employees. The basic building blocks are:
A good plan design to maximize employer contributions while lowering costs that can withstand cross testing.
An independent TPA that charges flat fee.
A good record keeper/custodian.
Access to low cost index funds
A plan adviser that keeps everything smooth.
Coming to the plan itself, a safe harbor 401k with profit sharing meets most of the requirements but employer contributions vest immediately. I have seen some 401k plans with 6yr vesting schedule. Can that vesting schedule be flexible in the plan design to make it less restrictive(say 4 years instead of 6)?
If you have a fee only financial adviser with appropriate fiduciary responsibilities already, can you select a good TPA, record keeper etc and build a 401k plan with out the need for yet another adviser who oversees just the retirement plan? If so, what are some good TPA and record keeper options to look in to?
Appreciate your feedback.
A good plan design to maximize employer contributions while lowering costs that can withstand cross testing.
An independent TPA that charges flat fee.
A good record keeper/custodian.
Access to low cost index funds
A plan adviser that keeps everything smooth.
Coming to the plan itself, a safe harbor 401k with profit sharing meets most of the requirements but employer contributions vest immediately. I have seen some 401k plans with 6yr vesting schedule. Can that vesting schedule be flexible in the plan design to make it less restrictive(say 4 years instead of 6)?
If you have a fee only financial adviser with appropriate fiduciary responsibilities already, can you select a good TPA, record keeper etc and build a 401k plan with out the need for yet another adviser who oversees just the retirement plan? If so, what are some good TPA and record keeper options to look in to?
Appreciate your feedback.
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