How Can The IMA 401(k) Make Your Life Simpler
Your responsibilities BEFORE joining the IMA 401(k)
Plan sponsor duties
- Design plan document and maintain qualified status
- Appoint and monitor all other plan fiduciaries
Plan investment fiduciary duties
- Produce and maintain an Investment Policy Statement (IPS)
- Select investment platform meeting ERISA “Prudent Person” standards
- Conduct quarterly Investment Committee meetings
- Review and document investment returns, fees, expenses, and comparisons to peer group
- Monitor status of all investment options and remove or replace as appropriate
Operational plan administrator duties
- Determine participant eligibility
- Conduct enrollment and educational meeting
- Send out enrollment packets including Summary Plan Description (SPD), 404(c) compliance information, Qualified Default Investment Alternative (QDIA), and explanation of expenses
- Comply with ERISA Section 2550.404(c) provisions for participant communication, including but not limited to:
- Notice to participants of intention to comply with 404(c)
- Description of investment alternatives available in the plan
- General description of the investment objectives and risk-and-return characteristics of each alternative
- Description of transaction fees and expenses that affect the participant’s account balance
- Specified information regarding the plan fiduciaries
- Description of the annual operating expenses of each designated investment alternative
- Copies of prospectuses, financial statements, and reports provided to the plan
- Address specific participant requests and/or instructions in compliance with 404(c)
- Administer participant loans in compliance with statutory requirements
- Send out participant termination packets
- Administer distribution and rollover requests for terminated employees
- Administer hardship withdrawals in compliance with the hardship rules, included in provisions of PPA of 2006
- Oversee annual census reconciliation with TPA
- Review and validate compliance testing
- Provide for annual audit of the plan
- Oversee and manage process, in conjunction with TPA, for annual filing of Form 5500
- Send out required year-end notices to participants [e.g., Safe Harbor, summary annual report (SAR)]
Your responsibilities AFTER joining the IMA 401(k)
- Select customized plan design options to meet your business needs
- Serve as a co-adopter of the plan
- Submit 401(k) file each pay period
- Deposit contributions on a timely basis
- Provide final annual census and payroll data for testing and audit purposes