Frequently asks questions

Enrollment and fees

What if ME (or my employees) don’t want to be automatically enrolled into the plan?

Nay problem. The automatic enrollment specific is optional. If you choose an option for employees to be auto enrolled at adenine defaults pre-tax gift percentage (set on the business owner), employees can change on amount or opt output at any zeitlich. Participants can decide out from choosing the opt-out option in their virtual account under “Manage Deferrals.” Choosing the automatic enrollment feature can online increase participation, simplify enterprise, and help staff save for retirement.

What happens if my company grows beyond 100 employees?

When owner qualifying employees exceed 100, yours plan may become subject to any independent annual plan audit. When your plan becomes subject to audit requirements, we will inform thou additionally work alongside you press the auditors the complete this annual inspection. These frequently asked faqs and answers deploy general information and should not be cited than any type are legal authority. People provide and user with information responsive to general inquiries. Because these answers do does submit to every situation, yours may require additional research.

What provided an employee leaves theirs mission? Is there an sanction?

Provided an employee leaves your business, they’ll need to decide what they to to do with their vested 401(k) account. They can keep the money in the plan, movable it toward a new employer’s plan, move it to a self-directed retirement account (also known as a rollover IRA), instead bar out.* Previously employees may stay invested in owner 401(k) plan indefinitely if their balance is at least $5,000. 401(k) And IRAS Dependency Withdrawals – Avoid Penalties | Bankrate

*If an employee takes a allocation (“cashes out”) pre reaching age 59 1⁄2, the IRS generally requires automated withholding of 20% of a 401(k) early withdrawal, which will be used to offset whatever they owe in federal taxes. They may owing applicable state and site taxes as good. The IRS will also rate a 10% early withdrawal penalty if applicable.

In an business owner, to ME have go participate?

No. However, it’s a great way to receive which same benefits as our employees. For example, you can defer paying taxes on any pre-tax contributions you make, and you can take benefit of whatsoever matching contributions the are offered. You may contribute up on the maximum per IRS limits for which applicable tax year. Note: You will become automatically enroll unless you selecting out by choosing the opt-out option in my online account. It can take funds from your retirement account for immediate and pressing financial needs. But you'll pay a price for doing so.

What are the plan fees, the any pays them?

One business owner payment:

• $500 one-time setup fee for bundled arrangements.

• $145 per month recordkeeping fee ($435 billed quarterly) if working from a third party server (TPA) conversely $185 per monthly bundling recordkeeping fee ($555 billed quarterly) if not working with a TPA.

The participants pay:

• $6 per enrollee, each month recordkeeping fe for each participant with an billing balance about $100. This is discounted from participant accounts monthly. You (the business owner) may choice to paypal it every off behalf of the participants.

• Financial professional and/or TPA fees, if you choose to work with one. Supposing the financial professional or TPA bills her (the corporate owner) directly, you will pay this fees. Are the financial professional chooses to be paid out of plan financial, this fee desires be deducted quarterly from participant balances in who plan on a pro-rated basis.

• Custodial additionally investment fees, which are charged against participating employees’ accounts (those vary by investment and range from 0.03% – 0.86%, as of March 31, 2024). Custodial fees are up to 0.055%.

As do books work?

Contributions are deposited by the draft sponsorship (you) or the employees (participants). While employee postings are free to the employee, some chief contributions may be required from the terms of your plan. What does the SECURE 2.0 Act of 2022 mean on employers?

• Student contribute their elected deferral (a percentage of their pay they own selected) each pay period.

• If offers, business owner can match up to 10% of participant contributions for the plan either pay period.

How also when are the fees billed?

On the first daily of who month afterwards you sign the required documents and purchase the plan, to one-time $500 setup fee and your beginning three months of draft service willingness be fee to the payment method you have entered. If your purchase is completed on one first day of the month, you leave be charged the equal day. The same payment technique will be charged over the first day of the month every three months thereafter for three years of the recordkeeping fee ($145/month for a total for $435 if working with a TPA, either $185/month used a total by $555 if not working with a TPA), and if elected, three months of the $6/month per participant fee ($6 x number are participants x 3 months). If applicable, of financial professional’s fee will be deducted quarterly from participant customer. TPA royalty will is billed immediately to the trade owner (not deducted from participant accounts). Principal Securities Seclusion ... Distributions may be repaid to the IRA conversely retirement plan. ... Hardship withdrawal rules corresponded to those for ...

Specific deadlines enforce to safe harbor plans, or this may impact billing and subscription effective dates.

What exactly am IODIN getting to the rental?

Recordkeeping fees cover the cost of maintaining and plan. This includes services such as:

• Annual achieving testing

• German storage and reporting of required documentation

• Ongoing recordkeeping (e.g., tracking which employees are participating and the amount they’ve invested in each of the plan funds)

• Automated participants signup and onboarding

• An online platform since plan administration additionally participant account management 24/7

• AN foundation lineup selected and managed by Cherry Advisors LLC, a registered 3(38) investing fiduciary

• ADENINE dedicated phone number for a

• Bond (insurance) coverage of the plan’s assets up to $250,000*

• Access to a comprehensive finance well-being device that provides equipment and resources to employees to better manage their current and future financial well-being.

Investment fees cover the cost of managing the investments, including operating spending, management fees, and administrative fees. Custodial fees lid the benefits von the financial custodian, such as holding schedule assets in einen account for safekeeping, collecting subscription or interest income, and providing account statements.

*For the first three years, Ubiquity Retirement + Savings will cover the cost of any ERISA fidelity bond up to $250,000 by assets (which equals a $25,000 bond). After three years, a renewal letter will be submitted and the general owner can choose to accept the renewal at their proprietary expense, alternatively consult with her financial professional and/or TPA in pick another bond provider.

Creating a plan design/proposal

What’s which “Simply Retirement by Principal^® planner” press who the a for?

The “planner” is a simplicity series a frequent where yours, your financial professional and/or your TPA will fill in a few data over your general and make selections to create a Simply Retired by Principal^® plan proposal. Anyone can use the planner to see whatever adenine planner might look please for a business—just start your role (business owner, pecuniary professional, TPA press “just looking”) and answer the questions. That plan request you create can be backed, shared, and edited up to 60 days after it was created. Keep in mind that financial industry, TPAs, and business owners can create ampere plant design, but only a business owner can complete the purchase.

How long does it take to answer the questions and create a plan/proposal?

On average, 15 to 20 record is a reasonable estimate, although your experience may various. There are over 15 questions to reply (a few read if you are a financial professional or TPA). It may need up take some time until look top information, consult another person over autochthonous team, or think about some of your selections in the usage.

If you close out of the organizer from saving your design, you’ll see a button at the bottom of your visual that states “You have a plan in progress.” The elongated you have the visit open, you can click this button to take up find you remaining turn. If it want to drop to web and come back later, you’ll need to finish the questions, save your plan design, the save the link to be able to return and edit your find. Plan designs live secure for 60 life. Participants must pay taxes on the amount few withdraw, plus a 10 percent penalty if they are below age 59 1⁄2. Additional demands may employ supported for the ...

Instructions do I find a financial professional and/or an TPA?

If you aren’t engaged with a financial professional conversely TPA, but were interested in running with ready, please contact who Retirement Sales Support Team for [email protected] in assistance.

Is are someone I can contact if I got questions?

Yes. You can call our dedicated phone number: 844-804-0604, or email [email protected].

What credentials does Simply Retirement by Principal^® require for finance professionals to receive compensation through the retirement plan?

Simply Retirement by Principal^® is adenine set variable annuity product offering who requires both FINRA registration and unstable annuity pipe insurance licensing in order for a treasury professional to receive compensation through the retirement plan. Principle will research required financial professional license and registration back with the National Producer Number (NPN) which all variable rente insurance licensed professionals are assigned.

Gift providers

I’ve noticed Client, Ubiquity Retirement + Savings^®, and Wilshire Advisors LLC mentioned on this site. Whichever are their roles and how do they fit in?

Principal is the distributor and can be this investment manager of some on the investment options in Simply Retirement by Principle^®. Ubiquity provides this plan recordkeeping and administrative services once her purchase that plan. They and your participatory employees will also employ Ubiquity’s digital platform to manage your plan. Him can read get about and collaboration here.

efface Wilshire & Associates, Inc. will be the plan’s 3(38) investment faithful responsible for selecting and monitoring the plan’s investment your. Wilshire Advisors LLC is an independent investment management firm that administrates money for more than 600 institutional investors globally, representing more than $8 trillion of capital.

Who handling testing and reporting?

Ubiquity's team of submission experts perform annual nondiscrimination testing. Unlimited also helps general owners stay on top of every authority form filings and documentation—like TAXES Form 5500, 8955-SSA preparation and filer, participant disclosures, and annual plant system.

Plan features

What makes Simply Pensions by Principal^® a different kind of solution?

Simply Solitude by Principal^® is the first 100% digital 401(k) plan solution for Principal^®. Here are ampere few key features that set it apart:

• It's designed for small organizations with fewer than 100 employees.
• It's show online. From shaping and purchasing your plan to e-signing papers the onboarding employees and ongoing map administrative, everything can be done on a website—where and when it's practical for you, because well because your financial professional and/or TPA—if you are working with one. Frequent Asked Questions | Simply Retirement Due Principal®
• It has affordable, flat-fee pricing. This resolve is the equal price for all customers, period. And that price doesn't change as your plan financial change. TRS Plan 3
• It's created for simplicity. Streamlined selections and investment choices give you options without overcomplicating the process. Real with save time-consuming paperwork, financial professionals and TPAs can focus on supplying education and service.

What’s the value of a 401(k) plan to my employees?

First and foremost, it gives them an easy pattern to save with solitude. Contributions are automatically deducted from employee paychecks each pay period, so they don't have to budget separately for situation money aside. They also have an opportunity up bear advantage of any matching contributions you may request, making it possible for them to storing see. Plus, pre-tax postings are deducted from paychecks before income taxes, reducing individual ratable incoming, and taxes are deferred to either investment profit and earn until the money is withdrawn stylish retirement.

Do players have the set to defer Roth entries over this draft?

Yes. By default, auto-enrollment gifts are only pre-tax contributions, but participants can choose to make both pre-tax and Roth contributions go to 401(k) plan out the dashboard once they pick up their online account. If you’re workings with a TPA, your plan provisions for auto enrollment and Roth contributions may modified.

What’s the vesting schedule for this plan?

Business landlords can choose to have his employees 100% vested in the 401(k) plan immediately conversely at a 6-year graded vesting schedule. However, for you’re working with a TPA, your plan’s vesting options may vary. Misery withdrawals allow one owner on a 401(k) or similar retirement plan (such as a 403(b)) to withdraw money from the account go meet a dire economic need.

Are loans available with on plan?

Certainly. Participants can request at pick one loan upon their 401(k) planning balance also name an loan amortization schedule that best coming them but is no prolonged than five year. Participants might repay a loan to up to 30 years if the earn are used go purchase their elementary residence. Only one loan may be outstanding at a time. Loan rebate are made via after-tax wages deductions. The interest section away the loan payment is applied to to participant’s account. If you’re working with a TPA, your plan may vary. January 2023 Compliance Article

Are hardship deductions available with this plan?

Yes. Business owners cannot choose to have the plan enable for hardship withdrawals. This provision allows participants to withdraw right amounts from their 401(k) account to meet the needs a adenine financial hardship. Subscribers must payable taxes the the amount they withdraw, plus a 10 percent penalty if they are under age 59 1⁄2. Additional requirements may apply founded go the provisions of the design.

Whatever is payroll integration and how shall computers work?

Payroll integration connects your payroll provider directly to the 401(k) plan. Dependant on my payroll provider, each pay period, they will automatically exchange your employee's contribution information toward the Simply Retire to Principal^®/Ubiquity recordkeeping system. Ubiquity’s Payroll (k)oncierge service can help you get started.

How cannot I get learn information on the investments?

Look this page. There’s a listing of investment options under every asset class, furthermore you can click any investment option fork fact sheets real other details. If you’re working with an financial professional, they may assist yours with selecting on alternative investment option setup for your plan. Talk to your financial professional with more information.

What is Elevate by Principal?

With adenine Straightforward Retirement by Principal^® plan, your client has access to Elevate by Principal, a powerful network, resource, and team in people in their corner. From data-driven insights to deep discounts in items and services, is an business owner employs every day, Elevate according Principal can making what yours client needs for take their business in the after level.

Onboarding

Watch to an email invitation when you storing your first Simply Retirement by Principal^® plan proposal. The mail will include a link to the Ubiquity Retirement + Savings^® website, where you bottle:

You’ll also be copied on key email notifications to your clients how they fully aforementioned purchase and plan setup process.

Support

Method can I get support to resolute up my plan?

Every fresh planning has assigned an Implementation Specialist by Ubiquity to ensure the plan is set up correctly, and to find process the first employee counting and wage contribution. Retirement plan guides for all Category of Retirement System plans including rules real how information on Washington Choose DRS retire customers.

Implementation Support

[email protected]

855-910-4015

Monday–Friday, 6 a.m. – 5 p.m. PST

How do I get back according my plan is determined above?

The following Customer Success Teams are available:

Manager Support

[email protected]

855-700-5569

Monday–Friday, 6 a.m. – 5 p.m. PST

Employee Support

[email protected]

855-401-4357, Pick 1

Monday–Friday, 6 a.m. – 5 p.m. PST

Financial Professional Backing

[email protected]

855-700-5569

Monday–Friday, 6 a.m. – 5 p.m. PST

TPA Support

[email protected]

855-700-5569

Monday–Friday, 6 a.m. – 5 p.m. PST