FAQ

Q: What is the Group Retirement Program? 

The Group Retirement Program is a Multiple Employer Plan (MEP) meant to help small business group together to have access to more affordable and robust 401(k) investment options.

Q: How do MEPs work? 

A company joins their 401(k) plan with those of other companies to form a much larger plan. Professional administrators then oversee the plan and accept legal responsibility and accountability for doing so, which means your name comes off the Master plan document.

Q: What are the Benefits of joining our MEP?

1. No plan audit fee to the employer
2. Negotiated group pricing
3. No start-up fee to the employer
4. No document fee to the employer
5. No annual 5500 filing fee to the employer
6. No required ERISA Bond
7. Investments are monitored and replaced if required; quarterly
8. Employees' education and tools given for financial literacy and saving success.
9. Custom plan design
10. Reduce employer fiduciary liability
11. Plan price comparison at no charge
12. Employer contributions and expenses are tax-deductible. See your tax professional.

Q: Why consider a group plan? 

A group plan allows plan management to be streamlined by using a single plan document. By doing this plan administration and paperwork is greatly reduced.

Q: My business currently has a 401(k) or another retirement contribution plan. Why should my company consider utilizing the Group Retirement Program? 

The Group Retirement Program is an efficient and affordable program that will give you more time back, help your employees prepare for retirement, and allows for the takeover many of your fiduciary responsibilities.

Q: What are some features of the Group Retirement Program?

1. Auto-enroll: Those not already enrolled will be auto-enrolled into the plan. *
2. Auto escalation: Increases contribution by 1% each year up to 10%. *
3. 3(16) Fiduciary: transfers the administration liability to a third party.
4. 3(38) Fiduciary: investments are monitored and replaced with discretion.
5. Payroll integration (depending on payroll provider). *
6. Your company logo on enrollment flyer.
7. You may customize our education program and time allowance.
* Only available for those who have 180 or 360 payroll integration

Q: Who can join? 

All businesses are welcome, including those out of state.

Q: How much can my company save in fees by servicing my 401(k) plan with the Group Retirement Program? 

With our proposal, we provide a side by side comparison with what you currently have as a plan against what we provide through the Group Retirement Program.

Q: What is the timeline for a company to initiate a retirement plan (Generally)? 

If all census information and required documents are provided, the ETA of implementation is within 1 to 5 business days.

Q: What are the investment options? 

The program will offer both passive and active investment options, reviewed for performance, fees and other factors.

Q: Who selects the investment options? 

Joe Caldera selects and monitors the investment line-up as the 3(38)-investment fiduciary.

Q: How are the investment options chosen? 

It is our fiduciary responsibility to select and offer top-tier investment options available. To choose these offering all investments are screened, selected, monitored and scored every three months on a 12- point system.

Q: Who holds the investments? 

Broadridge Matrix Trust Company, Nationwide Financial, or National Securities Clearing Corporation.

Q: What are Recordkeepers and what do they provide? 

Recordkeepers track the activity, and the participants' balance in the plan, which includes deposits, withdrawals, loans, and investments. Often, the recordkeeper is also the custodian, who physically holds the retirement assets.

Q: What are Third Party Administrators and what do they provide? 

Third Party Administrators create the company's governing documents, prepare required notices to employees, manage loans and distributions. They also complete the annual testing and IRS filings.

Q: What are the fees? 

Fees will vary according to the group plan selected.

Q: What about distributions or loans? 

The TPA will review and authorize any distribution requests from participants in your 401(k) plan. This will also include loan reviews and authorization if your plan includes loan provisions. There is no need to worry about pesky emails flooding your inbox asking for a signature.

Q: What are my responsibilities as a sponsor under the Group Retirement Program? 

Your responsibilities include uploading pay files (unless payroll is integrated), providing year-end data, and monitoring the Group Retirement Program.

Q: Which payroll providers are currently providing 180 and 360 integration? 

We can work with most payroll providers. Starting October 1, 2020, employers may use the following payroll 180/360 partners:
180: Advanced Payroll Systems, Complete Payroll, Deluxe Payroll, Heartland Payroll, Netchex, Pay Master, Pay-Net, Payroll Partners, Payroll Service Solutions, PaySphere, Paytime Payroll, PC Payroll, Prime Payroll Services.
360: AM Check, ManagedPAY, iSolved, Paylocity, Payright Payroll

Q: Can I customize plan provisions? 

Yes, you can select eligibility by age and length of service. You can also offer a safe-harbor match or discretionary match.

Q: What are the Safe Harbor and matching options? 

1. 100% up to 3% of compensation to all those who are eligible
2. 100%, up to 6% match of compensation of those who defer
3. 100%, up to 3%, and 50% on the next 2% deferral based on compensation.
4. Discretionary match or no match (Non-Safe harbor)

Any match provided is based on total compensation, including employee bonuses. Must pass ADP & ACP.

Caldera Wealth Management Group and LPL Financial are not affiliated with ay of the above named entities. 

Q: How do you get started, and who helps with enrollments? 

Contact Joe Caldera or Sal Diaz, LPL Financial Advisors, at (702) 846-4015 or (702) 846-401(k) or retire@calderawealth.com.