401kay

We've been using Relius and know that it will be winding down and transitioning over to the new FIS Omni platform. Its been delayed so many times and since its still built on top of their old omni I don't feel super confident in how actually new and different it will be. But the biggest concern is cost, does anyone have an idea of how much its going to be? Relius is already on the high end. Trying to plan for the right solution.

Got it thank you both! Are there limits to how much can be contributed by the employer? I am thinking no more than 100% of what the employee earns in W2 income, but wondering if they're able to add additional from a profit-sharing option.

I'm looking at what after-tax contributions are allowed. Where certain money can come from and what limits are associated with it but its not very clear. The difference between employee deferrals, employer matching, and after-tax non-roth contributions.

If a client is looking to establish a solo 401k is there anything significantly different in the plan design, or can I use my standard FT documents and just only have one person in the plan. Am I missing something? I apologize for being so simple with this, I've just never done a solo 401k before. Thank you!

We're taking over a client's plan starting next year and looking over their 2022 information, and it looks like they added a Safe Harbor match mid way through the year. It does appear that the date they added the Safe Harbor is the same date as the effective date for deferrals. Even though the plan has a 1/1/22 start date. I always thought mid year Safe Harbor wasn't acceptable, but I'm wondering if this structure makes it ok?

Thanks for the quick response! Is there anything we should look out for?

If a plan is Safe Harbor are you able to do discretionary profit sharing (like a new comparability model)? Where the owner wants a different end of year profit sharing contribution from the other employee.

The plan sponsor is concerned about passing testing if they allow the voluntary after-tax contributions (this is not a Safe Harbor plan). Do most plans usually successfully offer voluntary after-tax contributions? And if so, is there anything they should be aware of to help it pass testing? Any other provisions they should ensure are added?

If a plan doc allows for certain provisions (for example, voluntary after-tax contributions) but none of the service providers include that in their offering, what right do participants have to demand it? Thank you!

Got it, thank you! It seems we shouldn't allow any new plans that late and it might be best to cut it off mid-November, and we can start new plans in the new year. Just good to know its not all over October 1st!

Yeah exactly, we're concerned about enough notice time. So if we restrict HCEs to 5% to help us pass testing, in theory we should be able to start new plans up until 12/31?

Thank you so much Lou! So we can start a traditional 401k (not auto enrollment) up until 12/31 for this year? Is it just safe harbor that requires 3 months? And can we convert the plan to auto enrollment at the beginning of the new year?

Hello! I was hoping someone could help clear up some deadline confusion for new plans. I'm not clear on what the final deadlines are for establishing a new plan (both Traditional and Safe Harbor) for this year. Is it October 1st? If its auto enrollment does that mean September 1st? But if there's not auto enrollment provision then its extended to October 1st? I saw some mention that you can start a plan as late as December 31st, but is that only for plans starting next year? Any clarity would be massively helpful! Thank you!!

We're a small 401k platform (a startup) and we're looking to bring on a TPA to either act as a consultant, or to work with us on a per plan or monthly basis. I'm not exactly sure where to start looking, so any guidance would be appreciated! Thanks!