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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

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