|ROSELAND, N.J.-- ADP(R) Retirement Services, part of the Employer Services division, a leading provider of integrated outsourced payroll and human resources services, today announced that it has expanded its offerings for the small business market with the introduction of a Solo(k) retirement plan. Known as a "one-participant" 401(k) plan, the offering is available to employers who own 100 percent of their own business or are partners in a business with no full-time employees other than a spouse.
With this offering, owner-only businesses can maximize their retirement savings by contributing as both an employer and an employee to a Solo(k) plan. Contributions are tax deductible and earnings accumulate on a tax-deferred basis. As participants, business owners can capitalize on many of the benefits of a traditional 401(k) plan. As owners, they can experience substantial cost savings, while decreasing the amount of time and resources needed to manage the plan.
"We're seeing an increasing number of owner-only businesses looking for cost-effective, flexible and easy-to-manage retirement savings plans," said Kendall Kay, Vice President, Marketing, Strategic Planning and Business Development, ADP Retirement Services. "This offering appeals to them because it provides an excellent savings potential, with a significant reduction in the administrative burden. With ADP's Solo(k), even the smallest business can enjoy the big advantages of a 401(k) plan."
Other benefits of ADP's Solo(k) plan include the ability to take out loans from the account, submit additional catch-up contributions (for participants age 50 or over) and consolidate rollovers from other eligible plans, including traditional IRAs, 401(k)s, and SEP's. Solo(k) plans are easy to set-up and maintain, as 401(k) discrimination testing is automatically passed and there is minimal government reporting, if any.
In addition, owner-participants gain access to ADP's experience in and knowledge of plan recordkeeping and participant support programs. This includes plan design, contribution processing, payroll integration for ADP payroll clients, compliance support, and loan administration services. Additionally, ADP provides various planning tools, including a participant Web site, automatic account rebalancing and the option to automatically have deductions increase on a specified date each year.
ADP Retirement Services has developed business alliances with industry-leading investment providers to offer a variety of defined contribution programs. These programs combine the strength of ADP's recordkeeping services, with partner companies' resources and talent, to offer flexible and comprehensive solutions that meet the needs of today's organizations. ADP Retirement Services will be developing business alliances that make additional retirement plan products available to owner-only businesses in the near future.
Providing retirement services to organizations since 1989, ADP provides employers of all sizes with a highly automated and flexible service model that enables organizations to focus more time on their core business. In addition to its Solo(k) plan service offering, ADP's retirement services offerings for small business owners include SIMPLE IRAs, traditional 401(k) plans, money purchase plans and profit sharing plans. For owner-only businesses who would like more information on ADP Retirement Services' portfolio of 401(k) and defined contribution solutions, including its new Solo(k) program, call 1-800-432-4015 extension 415 or visit www.adp401k.com.
Automatic Data Processing, Inc. (NYSE:ADP) with over $7 billion in revenues and approximately 550,000 clients, is one of the largest independent computing services firms in the world. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that help its over 475,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Web-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefit administration, time and labor management, retirement plan services, online recruiting, PEO services, and employment screening and selection. For more information about ADP Employer Services, or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.