Advisors
Why should I be looking at outsourcing 3(16) Plan Administration?

Employers and Plan Sponsors today are overwhelmed trying to keep up with the compliance and regulations of offering a 401(k) retirement plan to their employees. With the increase in amount of time and expense it takes to deal with administrative issues, compliance, documentation, tax reporting and now all of the notices and documents that are required, your clients are getting fed up and it's not going to get any better! The Architect 401(k) Solution can not only simplify their lives, but your life, too—by outsourcing virtually all the administrative, compliance and fiduciary responsibilities to us. Employers today are finding tremendous relief from the complexities and responsibilities of offering a quality 401(k) retirement plan to their employees.

The Architect 401(k) Solution allows Employers to transfer the risk and responsibility of compliance, administration, notices, tracking eligibility, enrollments, distributions, terminations, day-to-day operations, and the list goes on and on!

How do we do this?

The Architect 401(k) Solution can become the 4.02 Plan Fiduciary and most importantly, a full 3(16) Plan Administrator, as outlined under ERISA. Each employer signs an adoption agreement joining our Master Plan Document and then under a separate service agreement, they appoint us as Plan Administrator and Fiduciary. When a company joins our Master Plan Document, they are transferring most of the risk and responsibility to us to run and monitor their plan.

Once the agreement is signed, we assume those roles and all the responsibility for your 401(k) plan. As your Plan Fiduciary, we are responsible for:

  • Maintaining the plan document
  • Producing and maintaining an Investment Policy Statement
  • Monitoring enrollment meetings
  • Tracking eligibility
  • Maintaining current enrollment and distribution forms
  • Selecting and monitoring funds
  • Maintaining "Prudent Person" standards, as outlined by ERISA
  • Reviewing investment returns and fees
  • Maintaining 404(c) compliance
  • Administering and approving loans
  • Sending out termination packets
  • Forcing out terminated employees with less than $5,000 account balances
  • Processing QDROs
  • Administering hardship and in-service withdrawals
  • Benchmarking our plan every three to five years, which is now recommended by the DOL

Many of your clients are only doing a portion of these tasks today, exposing themselves to investigation and possible fines from both the IRS and the DOL.

In addition to all this, as 3(16) Plan Administrator, we are responsible for mailing all notices direct to every eligible employee, terminated employees with an account balance, and beneficiaries with a balance. We mail Safe Harbor Notices, Summary Plan Descriptions, Summary Annual Reports, QDIAs, Summary Material Modifications Notices and the new Annual Participant Fee Disclosure with Benchmarking requirements direct to each employee's home.

The Architect 401(k) Solution is unlike most other 3(16) in the marketplace. Others have built their platform using the typical insurance industry products, limiting employers to outdated technology, high fund fees and limited support.

How we can help you sell and make more money

Our first step, is to create a state-of-the art proposal system that addresses every aspect of the retirement plan process. One of the greatest values we believe you can provide to a new potential client, is to analyze the current fees and expenses on their existing plan. The Architect 401(k) Solution will assist you in preparing a comprehensive breakdown of a client's current plan with a side-by-side comparison. If you can provide us with the information we request on our proposal request form—we will do this work for you.

Once a client has decided to join The Architect 401(k) Solution, our team of experts take over from there. We handle the process from beginning to end, minimizing the time and efforts for both you and your client. To simplify everyone's life even more, The Architect 401(k) Solution has created a Call Center for all Plan Sponsors, Participants and Advisors to contact us, no matter what the question is. We eliminate tremendous confusion for our clients and their employees by providing a one-stop shop for service.

If you're interested in enhancing your 401(k) practice and providing the next generation of retirement plan solutions to your client—we encourage you to check out The Architect 401(k) Solution. Remove the confusion for your clients who offer a 401(k)-retirement plan to their employees—outsource 401(k) plan management and operations to a retirement plan administration company that specializes in day-to-day operations and can save you time and money—The Architect 401(k) Solution.

We invite you to experience this one-of-a-kind benefit plan and understand how it will impact your clients and their employees. The Architect 401(k) Solution will change the way you look at retirement plans forever.