Page 18 - PRO_2023 Client Benefits Guide

401(k) Retirement Plan
One of the primary reasons companies offer 401(k) plans is to attract and retain top talent at every level of an organization. A 401(k) is attractive to employees because it provides an easy, cost effective way to plan for retirement by making tax-deferred contributions
to an investment fund. Employees are not the only ones who receive tax benefits from
a 401(k) plan – employers can also deduct contributions made to employees’ 401(k) accounts.
Third Party Administrator
Slavic Integrated Administration (SIA) serves as a Third Party Administrator to qualified retirement plans. They were founded in 1995 to concentrate on Multiple Employer Plan administration and compliance.
Options
You are able to determine which options you would like to include with the design of the 401(k) plan. These options include:
} Profit Sharing
} Safe Harbor Plan Design
} Choose your Vesting Schedule
} Determine your Eligibility
} Determine your Company Match, if any
Fees
Company Costs
Set-up: $0
Old Plan Takeover (one time cost): $350 plus $3 per participant Annual Fee: $350 minus $39 for each participant.
Example: There are 5 employees contributing to 401(k), so your annual fee would be $155 ($39 x 5 employees = $195 x $350 - $195 = $155 annual fee)
Participant Costs
} Non-Prorated Administration - $39 annually ($9.75 deducted from their account each quarter)
} Loans - $150 set-up plus $50 annual loan maintenance
} Distributions - $40
2023 Limits
} 401(k) deferral - $20,500
} Catch-up contribution for age 50+ - $6,500
} Contribution limit (deferral, match, profit sharing) - $57,000 (plus catch-up if applicable)
} Salary definition of highly compensated employee -
$130,000 (also includes +5% owners and lineal family regardless of compensation)
} Maximum Annual Compensation Limit - $285,000
SIA and PRO believe in absolute fee transparency. The participant fees are disclosed as a line item on the partici¬pant’s statement. Fees are not “hidden” in the investment returns. 12b-1 fees paid to SIA are credited back to the individual participants that own the fund. This ensures absolute objectivity in fund recommendations.
DISCLAIMER: The material in this benefits brochure is for informational purposes only and is neither an offer of coverage or medical or legal advice. It contains only a partial description of plan or program benefits and does not constitute a contract. Please refer to the Summary Plan Description (SPD) for complete plan details. In case of a conflict between your plan documents and this information, the plan documents will always govern. Annual Notices: ERISA and various other state and federal laws require that employers provide disclosure and annual notices to their plan participants. The company will distribute all required notices annually.
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