• Headquarters: 949-223-8397
  • 401k Support: 877-960-6003 x303
  • Headquarters: 949-223-8397
    401k Support: 877-960-6003 x303
PlanPerfect | Third Party Administrator for Business Retirement Plans
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  • Services
    • Plan Design
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  • Plans
    • Choosing The Right Plan
    • 401k Plan
    • Profit Sharing Plan
    • Defined Benefit Pension Plan
    • Cash Balance Plan
    • Combo Plan
  • About Us
  • Case Studies
    • Case Study: Sole Proprietor
    • Case Study: Small Business
    • Case Study: Family Owned Business
  • Resources
    • Articles
    • Which Retirement Plan Is Best?
    • Helpful Links
    • Dates & Deadlines
    • 2023 Contribution Limits
    • Forms
    • FAQs
    • ERISA BOND
  • Contact

Partner With PlanPerfect

Partner With PlanPerfect

We look forward to talking with with you.
Contact us today!






    Partner With PlanPerfect

    We look forward to talking with with you.
    Contact us today!






      Frequently Asked Questions

      Resources

      Frequently Asked Questions

      What are the benefits of using a boutique third party retirement plan administrator?

      A boutique third party administrator makes a plan sponsor’s life easier through competent administration, efficient plan design, and administrative expertise. They also ensure plan sponsors submit accurate data for their annual compliance testing so the plan remains qualified (tax deferred).

      Learn More

      Should I use my payroll providers as my company’s retirement plan administrator?

      Other than salary deferrals and W-2 compensation, 401(k) plan administration has little to do with payroll. Payroll providers that get into retirement plan administration often add investment advisory, insurance, and legal documentation services to support plan administration business. This “synergy” can lead to average or poor plan administration and investment returns as well as conflicts of interest.

      What’s wrong with one-stop shopping when it comes to picking a third party retirement plan administrator?

      In a one-stop shopping arrangement, a single firm provides all the services and investment advice—advice that might be less than objective since it can benefit the firm’s bottom line. With no objective party watching over, a plan sponsor can’t be sure that the third party administration (TPA) firm is putting the sponsor’s interests above its own.

      What is a Traditional 401(k) plan?

      A traditional 401(k) plan is a defined contribution plan, which allows employees to make contributions, to a 401 (k) account, most often from his or her paycheck, before taxes are taken out. With a 401 (k) contributions and earnings are taxed when the money is withdrawn. Often, employers will match up to a certain amount per dollar, for a certain percentage of employee contributions to a 401 (k).

      What is a Roth 401(k) Plan?

      Roth 401 (k) Plan combines the features of a traditional 401(k) with those of a Roth IRA. A Roth 401 (k) is offered by employers (similar to a 401(k)), but like a Roth IRA, contributions are made with after-tax dollars rather than pre-tax dollars. However, at retirement contributions and any earnings are tax-free. A Roth 401(k) cannot stand alone as a retirement plan, it must be added to an existing 40 (k) plan.

      What is a Defined Benefit Pension & Profit Sharing Combination Plan?

      Combination Plan marries features from Defined Contribution Plans, (such as profit sharing and 401 (k) plans), and a Defined Benefit Pension Plan. This hybrid retirement plan design can substantially increase the annual maximum dollar amount allocated to an individual compared to a stand-alone profit sharing plan. Combining these plans also allows businesses to maximize the benefits for owners and highly compensated employees and provides a minimum type of benefit formula to younger employees.

      What is a Simplified Employer Pension (SEP) plan?

      With a SEP, the employer makes contributions on a tax-favored basis to individual retirement accounts (IRAs) owned by the employees. If certain conditions are met, the employer is not subject to the reporting and disclosure requirements of most retirement plans. The SEP is a great choice for self-employed people or owner/spouse businesses that want to contribute up to 25% of their earnings or 20% of net income up to the contribution limit.

      What is a 401(k) Profit Sharing plan?

      401(k) Profit Sharing Plan allows the employer each year to determine how much to contribute to the plan (out of profits or otherwise) in cash or employer stock. The plan contains a formula for allocating the annual contribution among the participants. Among other advantages, a 401 (k) Profit Sharing Plan allows for potentially greater retirement contributions than a SEP at the same income level and tax-free loans are permitted up to $50,000.

      What is an Open Architecture plan?

      Open Architecture plans allow retirement plans to invest in funds from a wide variety of mutual fund families. In an Open Architecture fund inclusion is based on the individual merits of each fund.

      How can an Open Architecture plan benefit my company’s retirement plan?

      With an Open Architecture 401(k) platform, all fees are transparent. In addition, the Plan Sponsor (the business owner) can select from the entire mutual fund marketplace, including many institutional class funds.

      What is revenue sharing?

      Revenue sharing refers collectively to fees that service providers (insurance companies, payroll providers, banks, brokerage houses, mutual funds) charge to plan sponsors and participants. Sometimes these fees are referred to as “hidden fees” other times “indirect payments”. For good reason, these fees can be so complex and “under the radar” that many retirement plan sponsors are either unaware of their existence or don’t have a sense of their real cost.

      What is an Investment Policy Statement (IPS)?

      An IPS is a written document that provides guidance for a retirement plan’s trustees and investment professionals regarding the selection and management of investment assets based on established and documented investment goals and objectives. When used properly, this document can limit liability, provide consistency, and set expectations for investment performance.

      What is ERISA?

      Employee Retirement Income Security Act, (ERISA), is a Federal law that sets standards of protection for individuals in most voluntarily established, private-sector retirement plans.

      Do you have a glossary of retirement plan terms?

      Yes, we do!

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