Bundled 401(k) Plan Oversight
Aldrich Retirement Solutions
Our expertise and consultative services help large 401(k) plan sponsors understand and get the most value from their “bundled” 401(k) plan.
Bundled vs Unbundled 401k Plans
A “bundled” plan means that two or more 401(k) plan services are provided by the same company, usually an investment or insurance firm. These bundled services might include:
- Recordkeeping (tracking participant account balances and investments)
- Investment management (providing the investment funds for the plan)
- Third-party administration (preparation of contribution calculations, compliance testing and Form 5500 preparation)
The bundled provider is usually very good at delivering services to the plan participants through the effective use of technology. However, the provider may not be able to provide human resources practitioners or financial officers with the service they need to answer complex compliance questions or to administer the plan on a daily basis. Many plan sponsors often find themselves asking the following questions.
Common Questions from Retirement Plan Sponsors
- Is the plan operating correctly? Are we at risk for IRS or DOL penalties if we are audited?
- How do I correct issues that I have discovered and know would be a risk if we were audited?
- Who do I turn to for consulting and advice for highly technical plan design and compliance issues?
- Who can help me understand how my plan works and how all of the different pieces fit together?
- Who can I contact quickly and easily to answer my day-to-day questions?
- How do I know if I have right retirement plan design to meet my company’s goals?
Bundled Service Providers vs. Bundled Service Oversight from Aldrich
Bundled providers often provide service to their plan sponsors through the use of websites and toll-free telephone numbers instead of dedicated and experienced consultants. That’s where the Aldrich Retirement Solutions team can help. There is no need to change the bundled provider or the services they provide. We can simply work alongside the provider and provide our services directly to the plan sponsor.
Our bundled oversight service provides guidance and peace of mind for plan sponsors in the following ways:
- Answers to daily plan related questions
- Consulting on highly technical plan design and compliance issues
- Review of plan operation, administration and reporting to confirm that it is correct
- Proactive consulting to take advantage of opportunities and avoid costly problems
Our Bundled 401(k) Plan Oversight services include:
- Dedicated and experienced consultant on-call for client questions
- Annual review of the compliance testing, participant disclosures and Form 5500 generated by the bundled provider
- Annual client meeting to review the plan and our services and make recommendations
As part of the implementation of our services we also provide:
Plan Document Review
We review and summarize the plan document and meet with you to make sure the plan provisions are well understood by the trustee(s), plan committee, human resources and financial teams.
We review the operations of the plan to confirm that the plan is operated correctly in accordance with the plan document. Any differences between the legal document and the plan operations are brought to your attention. We make recommendations to fix discrepancies and improve the plan’s operation.
Depending on our findings we can make suggestions as to how the design of the plan could be improved to better meet the company’s goals for employee retention and key executive compensation.
learn more about our bundled plan oversight services
Senior Pension Administrator
David Bretthauer, CPC, QPA, QKA
Aldrich Retirement Solutions
David is an accomplished pension professional with over 15 years of experience in the retirement plan industry. Having served as a technical compliance specialist and with 10 years of experience as a qualified retirement plan consultant, David has a unique skill set that combines a deep understanding of retirement plan mechanics with an understanding of…
- Qualified Retirement Plan Design and Implementation
- Defined Contribution and Cash Balance Plan Administration
- Single and Combined Plan Annual Compliance Testing
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