Will I have a choice of plan options?
Yes. You’ll have the opportunity to choose your plan design—safe harbor, matching or no matching plan—a vesting schedule, and your matching formula (if applicable). These provisions are incorporated in your participating agreement.
How long does it take to set up the 401(k)?
We can help you design and implement your plan as quickly as 10 business days.
How are investments handled?
VPA works with a trusted investment advisor—Apollo Wealth Management—to independently analyze and select the investment lineup that will be available to the participants.
Participants can work directly with Apollo Wealth Management to discuss their individual needs, and they can access their information on the participant web site or by phone. Funds are invested with Vanguard and Broadridge Financial. Deductions and contributions are transferred directly from the employer to Broadridge Financial, the Fund Custodian.
Do I have to file a 5500 report?
No. VPA files one form annually for the Association Plan. Additionally, individual participating employers reduce their responsibility for ERISA 408(b)(2) compliance with respect to covered service provider disclosures and fiduciary liability effective in 2012. These functions are generally handled by VPA, the plan sponsor and providers, not the adopting employer.
Is there Fiduciary Liability for me personally?
According to federal Law (ERISA), you are probably a fiduciary if you are responsible for 401(k) plan selection, management, administration or oversight. Fiduciaries can be held personally liable (no protection from the corporate legal entity), for things like: selecting plans with higher participant fees, improper selection of the fund lineup, failure to forward contributions, bad advice, failure to enroll, etc. Personal liability includes putting your assets at risk, such as homes, investments, etc.
Because VPA is the Plan Sponsor, most of these responsibilities are taken on by VPA, Apollo Wealth Management, and other providers, thereby significantly reducing your liability.
Is the plan audited?
Yes, the plan is audited annually. This is facilitated by VPA.
How much is the VPA annual association fee?
VPA’s annual fee is very affordable and is based on the size of your company and the benefit options you choose. It can be paid annually, semi-annually, quarterly or monthly