- Provides recordkeeping and common remitter services for all 403(b)/457(b) plans
Additional services:
- Acts as a central point of contact for plan-level information.
- Provides overall compliance monitoring for plan transactions such as loans, hardship withdrawals, suspensions and reinstatement, distributions, and required minimum distributions.
- Coordinates investment provider activities.
- Maintains an employer plan website.
- Develops and maintains the plan document.
- Assists in plan design to eliminate compliance issues.
- Assists and advises plan sponsors regarding eligibility and participation requirements, e.g., universal availability rule.
- Assists in the calculation of contributions and compliance with legal contribution limits.
- Calculates participant eligibility for plan enrollment.
- Maintains administrative forms.
- Provides an employer manual.
- Maintains the summary plan description (SPD) for ERISA plans.
- Prepares annual Form 5500 reporting for ERISA plans.
- Performs compliance testing including nondiscrimination testing of employer contributions for ERISA plans.
- Provides online plan management and participant services.
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- Keeps records and maintains accounting of values attributable to each 403(b) or 457(b) plan participant.
- May keep track of the sources of money, e.g., pre-tax vs. Roth contributions.
- Usually does not handle compliance services.
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- Captures data from the employer’s payroll.
- Compares contributions received with expected contributions.
- Reconciles errors in contributions (exceptions) with the payroll department.
- Identifies employees eligible for “catch-up” contributions and applies contributions in the proper order.
- Distributes contributions to investment providers.
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