Category Archives: Finance and Investment

Retirement plan

A Plan for Retirement

What is a qualified retirement plan?

A qualified retirement plan is a popular savings tool that millions of Americans use to help prepare for retirement.

An example of this is a 401(k) plan. Employees in this type of plan make pre-tax contributions to their retirement plan accounts through automatic deductions from their paychecks. Over time, savings may grow, helping you prepare for retirement. Your qualified retirement plan can provide you with a number of savings advantages, such as the potential for reduced taxes, the ability to take advantage of compound earnings and more.

Retirement plan

And why is it important?

This plan has been set up by your employer. By participating in your company’s retirement plan, you’ll be able to take greater control of your financial future. You’ll also be able to take advantage of some attractive benefits the plan offers.

The potential to pay less in taxes

The more you contribute to your plan, the larger your retirement savings (and tax savings) may be.

Each 401(k) dollar you contribute to your retirement plan is taken from your paycheck before taxes are applied. This may lower your taxable income. It might even put you in a lower tax bracket.

The earnings on contributions to your plan grow tax-deferred until withdrawn. And since you may be in a lower tax bracket in retirement, you might pay less tax when the money is withdrawn than if you were taxed today.

Retirement plan

What Makes Us So Unique? There Are a Lot of Reasons

The decision to outsource your retirement plan to experienced industry professionals should be pretty straightforward. Either you want to retain total flexibility and responsibility (and liability) for plan oversight, or you’ve decided you would rather hand off almost all of the fiduciary duties and liability to a third party. Once that decision has been made, the next decision – who best to take over these duties – is equally important. We think this is where we have a huge advantage over the rest of the industry.

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The Platinum 401K is unique in its ability to have brought the first multi-provider solution to the 401k Outsourcing marketplace. Our annual recurring plan revenue – which is fully disclosed in the personalized proposal we generate for your plan – is identical regardless of which provider is selected. We also rebate back all recurring “revenue sharing” as a credit against our annual asset based compensation fees. This strategy lowers your costs and increases your plan returns. Where it’s contractually possible, we will simply carve out” all revenue sharing fees completely. Your custom plan proposals will provide complete details and additional information that you should read carefully.

We were also the first program of our type in the country to utilize a CEFEX-Certified 3(38) Investment Manager on a multiple employer plan of this type. The Centre for Fiduciary Excellence (CEFEX) is an independent global assessment and certification organization. They work closely with investment fiduciaries and industry experts to provide comprehensive assessment programs to improve risk management for institutional and retail investors. CEFEX certification helps determine the trustworthiness of investment fiduciaries. This is an important point of differentiation that you and your employees need to fully appreciate. The annual CEFEX audit of fiduciary practices of the Investment Manager provides a high level of confidence and protection for the plan and the participants.

Center for Fiduciary Excellence

Finally, we are industry leaders in terms of both experience and expertise in these types of programs. When the U.S. Department of Labor’s ERISA Advisory Council sought input on Outsourcing Employee Benefit Plan Services in 2014, The Platinum 401k CEO Terrance Power was asked to provide expert testimony before the group in Washington, D.C.

The findings of the Council have already led to several bipartisan legislative proposals in Congress that are expected to greatly expand the availability and benefits of these types of programs across the country.

We look forward to continuing to work with our supporters and friends in Washington to help broaden retirement plan coverage for working Americans. Read More

Retirement Plan Outsourcing Allows You to Focus on Your Business

Increasing operational and compliance concerns are causing employers to consider alternatives to traditional “single employer retirement plan” programs. In the past, employers needed to assume full responsibility for investment fund selection and monitoring, changing regulatory requirements, approval of QDRO’s, employee hardship requests, beneficiary payments, Form 5500 filings, plan documents, annual notice requirements, and much more. Quarterly investment and plan committee meetings tie up senior employee schedule time as employers struggle with what seems like an ever-increasing workload of regulatory and compliance hurdles. Additionally, in most cases employers shoulder personal financial responsibility for any mistakes that might be inadvertently made in operating their plan. This is unacceptable when there are other options available to the employer.

The Platinum 401k Can Handle All Of These Challenges And More!

Our unique multi-provider program is the leader in the retirement plan industry. With over 25 years of experience in working with multiple employer plan clients and with the flexibility to tailor investment providers – and pricing – to each client, our professionals enjoy a unique reputation for retirement plan excellence across the country.

Multiple Employer Plan

What Does All Of This Mean To You And Your Company’s Retirement Plan?

Investment Provider Flexibility

The Platinum 401k allows you the ability to choose from a selection of leading investment providers.

Plan Design Flexibility

Our program can seamlessly accommodate any existing prototype document plan design.

Pricing Flexibility

By custom pricing each adopter individually, clients can receive pricing concessions as assets grow.

Reduce Your Fiduciary Liability and Focus On Running Your Company

You can eliminate your role as a Plan Trustee, and also reduce or eliminate many of the traditional duties associated with running a retirement plan. Save time, save money, and enjoy peace of mind.

Lower your costs, lower your liability, and have less headaches. Run your 401k plan just like you run all of your other employee benefit programs – hire a provider who then assumes the responsibility for virtually all of the day-to-day fiduciary oversight! Read More

Multiple Employer Plan

It’s Time for the DOL to Rescind their Advisory Opinion 2012-04A

On May 29, 2012, the U.S. Department of Labor issued Advisory Opinion 2012-04A.

This document explained the Department of Labor’s position, at that time, on the use of multiple employer plans as they relate to companies who did not have any specific commonality or nexus that would otherwise tie them together.

It did not change the Internal Revenue Code Section 413(c) one bit, nor did it appear to change the position of the Internal Revenue Service on these types of programs. It did require multiple employer plan adopters to file individual Form 5500’s, incur the cost for an individual annual plan audit as required under current regulations, and to possess an ERISA bond for their portion of the plan.

Perhaps a walk down memory lane might offer some perspective as to why the Advisory Opinion was issued in the manner in which it was.

Multiple Employer Plan

In April 2012, noted “fiduciary expert” and multiple employer plan proponent Matthew Hutcheson was indicted on charges of stealing millions of dollars from a multiple employer plan that he oversaw (Hutcheson was eventually found guilty and sentenced to 17 years in federal prison for his crimes in 2013). The DOL issued a press release on June 14, 2012 (two weeks after the Advisory Opinion 2012-04A was released) announcing that they had obtained an injunction against Hutcheson relating to ERISA violations surrounding that case. They were right to do so.

Why is this timeline important? Clearly, during the time that the DOL was considering attorney Robert Toth’s request for a favorable opinion from them, the entire Hutcheson mess came to light…..and had the kneejerk effect of creating an “all multiple employer plans are bad” reaction from the DOL.

While on the surface, this could appear to be a rational reaction to the theft of millions and millions of dollars from plan participants.

A deeper dive into the Department of Labor’s own records of enforcement from their website, however, show much greater problems with operational compliance and theft occurring from single employer defined contribution and defined benefit plans when compared to multiple employer plan by an enormous margin.

It’s not even close. It’s not the plan structure that led to the theft, it was the criminal who was running the plan. Read More...

The Platinum 401k Open Multiple Employer Plan

Happy Business People In Meeting

The Platinum 401kAmerica’s Multiple Employer Plan and 401k Outsourcing experts! With over 35 years of industry experience, we help employers focus on running their businesses instead of their 401k plan!

Learn more about us at http://www.theplatinum401k.com/.

We assist retirement plan trustees in reducing their fiduciary responsibilities and liability by outsourcing many of the duties to experienced independent ERISA fiduciaries. We also work with retirement plan advisers all across the country to provide them with an outstanding multi-provider fiduciary solution for their clients.

If you are responsible for overseeing a corporate retirement plan and would like to lessen your liability, responsibilities, workload, and expenses, we probably need to talk.

Contact Terrance Power, at 813.774.3366 or tpower@theplatinum401k.com for more information about our multiple employer plan solutions!

The Pep Talk – What’s Coming for MEP’s

I was recently interviewed by Ary Rosenbaum for his web blog site, that401ksite.com, concerning recent developments that impact multiple employer plans.5khikk4ydtogbmotlxtltzl72ejkfbmt4t8yenimkbvvk0ktmf0xjctabnaljim9

Proposed bipartisan legislation will allow “open multiple employer plans” to be replaced by “pooled employer plans” – “PEPs” beginning in 2020 if the U.S. Senate Finance Committee has its way. Pooled Plan Providers – “PPP” or “P3” will be able to oversee these plans according to yet to be released regulations.

We’ll be making a new website that discusses the conversion process live shortly after the legislation is enacted, which is anticipated to be as early as December 2016 or early in the next Congress. Look for an announcement about http://www.MEP2PEP.com down the road. Read More

What Should Be Done When Selecting a 401k Investment Manager?

The process of choosing a 401K investment manager depends on the plan so as the services to be given. Choosing the best retirement plan may result to either retiring happy or working longer than you should be. Selecting the best 401K administrator is a very important aspect in this process. Typically, a 401K plan is being governed by the employer.401k-to-gold

In majority of cases, the employers assign a certain 401K plan administrator who will take care of the entire plan, looking over all employees or plan members who invested with the available retirement plan. Most of the 401K plan administrator contracts have expiration dates. Thus, if the retirement plan is not meeting the expectations, the employer has the right to look for a replacement firm, which of course, should perform much better.

Majority of the investment management firms have a section of the business devoted to 401K plan administration. One excellent method of searching for an appropriate 401K plan manager is looking in the region where the company or business is based. Nowadays, there are a lot of firms that offer 401K investment management service.

The internet is an explicit source for searching such firms just is entering certain keywords, like money manager, investment manager, or 401K plan provider. Another great trick to find the soundest 401K manager is to see the company or companies that majority of successful 401K plans are utilizing as their 401 plan provider for example http://www.theplatinum401k.com/.

Most of the private and public retirement plans divulge the portfolio of their plan at someplace. Typically, a public plan will showcase the investment managers who are engaged by the plan on their site, specifically through a yearly reported which is posted on the website. Aside from that, usually, the investment performance is outlined in these reports.

Therefore, by scrutinizing the returns and the company that is managing the plan, business owners can have a better view of what they should look for a 401K manager. The private retirement plans normally do not show their investment manager relationships on their site. However, in some locations, private retirement plans are mandated to file with the regulatory authority on a yearly basis; they should give some disclosures regarding the investment of the offered plan.

When choosing 401K managers, the fees must be considered. Depending on the retirement plan’s size, fee structures may vary from one 401K plan manager to another. There are times whereby the fees serve as the deciding factor, but it is typically a combination of costs and investment performance, and these are what lead the selection process.

There are as well times whereby the 401K manager or provider will negotiate fees to capture the interest of the business. Before making a final decision and finalize the selection process, business owners should allot time in interviewing prospect candidates, as well as gather historical information, especially about fees and performances. These will help company and business owners in selecting the soundest 401K investment manager.