Ubiquity Retirement + Savings has been an affordable provider of retirement solutions designed for small businesses, start-ups, and solopreneurs since 1999.
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One of the first steps in sponsoring a 401(k) plan is to partner with a 401(k) plan administrator who is legally responsible for setting up and maintaining your employee retirement benefits program.
Some sponsors may also be the plan administrator, but most sponsors outsource the task due to the risk and long list of responsibilities involved. Here you’ll learn who can administrate, what the duties are, how much administration costs, and where to find the right partner.
The plan administrator can be:
ERISA requires authorized plan administrators to be specifically named in the plan document as a fiduciary – someone who takes legal responsibility for the retirement plan. Plan administrators must be bonded fiduciaries because they determine eligibility and the amount of benefits payable under the plan, while directly handling funds for loans, investments, and distributions. In rare cases, a Third Party Administrator (TPA) will be involved in the implementation of core decisions and the general bookkeeping, but will opt to relinquish liability, instead naming the employer the sole fiduciary. These expectations will all be spelled out in the plan document.
Plan administrator duties and responsibilities may vary based on the plan agreement, but generally include:
Some responsibilities, such as auditing or providing financial advice, may be outsourced to service providers.
Fees for 401(k) plan administration can vary greatly among providers.
Pricing models include:
Ubiquity doesn’t charge AUM or per-participant fees. Instead, we charge one low, transparent monthly fee.
Naturally, fees are a big factor in choosing the best 401(k) plan administrator – but that’s not all. You want to find a provider who focuses on small business clients such as yourself, so you receive personalized attention and don’t feel like a number.
Ubiquity makes it easy for you to offer competitive retirement benefits while taking care of the administrative tasks like compliance testing, bookkeeping, government reporting, and paying funds out of the account. Contact our expert 401(k) administrators to learn more.