401k, Profit Sharing, Cash Balance & Defined Benefit Plan administration and actuarial services.

The TPA services needed to maintain your 401k Plan each year are delivered promptly and accurately.

Annual Administration

Recordkeeping Services

CB and DB plans potentially allow the highest tax-deductible contributions often well in excess of $100,000 annually.

Many business owners and partners are seeking larger tax deductions and accelerated retirement savings. Cash Balance plans may be the perfect solution. Also known as “hybrid” plans, CBs combine the high contribution limits of traditional Defined Benefit plans with the flexibility and portability of a 401(k).

Thanks to recent regulatory and legislative changes, Cash Balance plans have become the fastest growing sector of the retirement plan market, with thousands of professionals, farmers and successful business owners across the country adopting these plans each year.

A Cash Balance plan is a form of a Defined Benefit plan that specifies both the contribution to be credited to each participant and the investment earnings to be credited based on those contributions. When combined with a 401k Profit Sharing plan, the highest allowable tax-deductible limit can be reached.

New Plan Set Up

Establishing a CB or DB plan can be a complex task. At SPS, we strive to ensure the process is as easy as possible. We gather information about the employer to create a study that calculates the maximum or other target contribution and benefit levels, along with calculating the potential required contributions to non-owner employees. SPS will help design the optimal Plan design for the employer’s goals with respect to the employee demographics.

The Plan installation steps are:

Cash Balance & Defined Benefit Plan Administration

Each year, SPS gathers from the employer compensation figures, employee census data, and other relevant business information to calculate a contribution range, complete the actuarial work, and ensure the Plans are in compliance with IRS regulations. These steps include:

Outsourcing Plan Tasks and Responsibilities

Our 3(16) Administrative Fiduciary Services can help alleviate the day-to-day burden associated with an employer’s administration of a 401k plan. Certain tasks for which an employer is typically responsible are completed on the employer’s behalf in accordance with a separate service agreement. Using a 3(16) Fiduciary can never completely eliminate an employer’s fiduciary liability for the plan, but using 3(16) Administrative Fiduciary Services can lessen the burden of time-consuming administrative functions to allow business owners to focus on their business and its future.

Employers operating with a lean in-house staff benefit greatly from this service and can be confident that their plan is being administered correctly.

SPS 3(16) Fiduciary Services include:

SPS provides comprehensive services for all phases of your Plan.

Plan Termination (Closing) Services

The laws, rules, and regulations governing 401k, profit sharing, defined benefit, and other qualified plan terminations are very specific and enforced by the US Department of Labor and the IRS. It is important to utilize professional assistance to navigate the plan termination process. Failure to follow regulations regarding plan termination can result in substantial penalties and fines, or even worse, plan disqualification. SPS provides plan termination services to guide employers through the plan termination process.

Delinquent Filer Services

SPS provides administration services and 5500 preparation for plans that have not made timely filings. A customized quote can be prepared after discussing the services needed to bring a plan up to date. Services include:

Plan Document Amendments & Restatements

SPS provides employers with an IRS preapproved Plan Document along with compliant forms and notices. SPS can restate Plan Documents or amend the design of a Plan for an employer at a fair and affordable rate.

Lost Participant Location Services

Throughout a plan’s cycle, there may be times when separated employees must be located. SPS conducts the search and verifies that the required steps necessary to locate a participant have been satisfied.