Tag: switch 401k provider

Considering Switching 401k Retirement Plan Provider? Start Here!

Looking for a 401k retirement plan provider that truly understands and caters to the unique needs of your clients? Look no further than Retirement Plan Consultants (RPC). Whether you represent a small business or a large company, RPC has the ideal retirement planning solutions for you. We prioritize effective and flexible plans that are tailored to help you reach your clients’ specific goals.

Why should you consider switching your retirement plan provider to RPC? Here are a few compelling reasons:

Bundled Services: RPC specializes in bundled solutions, offering a comprehensive package that includes third-party administrator (TPA) and record keeper (RK) services. Our full-service approach allows for a streamlined experience. By housing these services under one roof, RPC saves valuable time for advisors and plan sponsors.

Fiduciary Services:  We partner with Wealth Management to offer several different 3(38) Fiduciary lineups. This alleviates time and liability from the financial advisor and Plan Sponsor.

Custom Plan Designs: Unlike many of our competitors, we provide custom and flexible plan designs. We don’t take a one size fits all approach.  We discuss the goals of each Plan Sponsor and customize the eligibility, employer contribution, distributions, and all features to fit the client.

Dedicated Plan Consultant: We understand that your time is valuable, which is why every advisor working with RPC is assigned a dedicated consultant. When questions or concerns arise, you can bypass the typical call center approach and reach out directly to your consultant for personalized support. Likewise, your clients will also have a single point of contact at RPC, ensuring prompt assistance whenever they need it.

Plans for Any Industry: At RPC, our mission is to provide personalized retirement solutions for clients across various industries. We offer a wide range of plans, including 401(k), 403(b), 457, cash balance, and more, to cater to the diverse needs of the advisors we work with.

Make the switch to RPC and experience the benefits of working with a 401k retirement plan provider that puts your clients’ success and satisfaction first. With RPC, you gain the advantage of custom plan designs, dedicated plan consultants, and a comprehensive range of retirement solutions. Contact our sales team today for more information on how to make the transition and unlock a brighter future for your clients.

Disclaimer: Investments provided through Wealth Management Nebraska LLC, Registered Investment Advisor.

This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not assured.

The articles and opinions in this publication are for general information only and are not intended to serve as specific financial, accounting or tax advice.

401(k) vs. 403(b) – What’s the Difference?

The most well-known retirement plans offered by employers are 401(k) and 403(b) plans. In general, these plans have a lot in common, however, there are a few distinct differences between a 401k vs. 403b that can determine which is the right plan for your business. The main difference is that 401(k) plans are offered by private, for-profit businesses, and 403(b) plans are typically offered by non-profit or government organizations.

What’s a 401k?

A 401(k) is a retirement plan set up by a for-profit employer that allows employees to save in a tax-sheltered way. A 401(k) plan can offer multiple investment opportunities, including mutual funds, annuities, stocks, ETFs, and bonds.

Employers can match contributions up to a certain amount per year. ERISA guidelines limit how much the employees can contribute. For 2023, the maximum you can contribute is $22,500. If you are 50 or older, you are eligible for catchup contributions of an additional $7,500 per year, in 2023.

A 401(k) retirement plan allows for features that are customizable. All 401(k) plans are subject to nondiscrimination testing which may lead to higher administrative costs. Other costly responsibilities for a 401(k) may include set-up costs, payroll integrations, employee matches, per-participants fees, and various compliance tasks.

One way to help lower costs and simplify administration of a 401(k) is by offering a safe harbor match. Offering this match eliminates the requirement for discrimination testing. A retirement plan provider can customize the plan to include a safe harbor match.

Another customization option for a 401(k) plan is to offer a tax-savings feature called profit-sharing. A profit-sharing plan is a defined contribution plan where contributions are only made by the employer. There are unique and attractive benefits to offering profit-sharing for both the employer and employee. An advisor can help educate employers on regulations and benefits of profit-sharing.

Types of 401(k)s

There are several different 401(k) retirement plans. Here is a list of a few of the more common ones below.

  • Traditional 401(k) – most common plan that gives employees a choice of investment options, tax-deferred, employer has the option to offer a match
  • Roth 401(k) – an account funded with post-tax money, withdrawals are tax-free with the exception of the employer match funds
  • SIMPLE 401(k) – offered by small businesses with 100 or fewer employees
  • Solo 401(k) – designed for self-employed business owners, who have no employees (spouses who earn income from the business may also participate in a solo 401(k) plan)
  • Safe Harbor 401(k) – requires the company to make contributions to plan participants through a match or non-elective contribution

What’s a 403b?

A 403(b) retirement plan is only available to tax-exempt 501(c)(3) non-profits, government employers, schools, hospitals, and certain religious organizations. Typical participants of these plans may include teachers, nurses, doctors, government employees, clergy and a variety of other positions. A 403(b) plan can include pre-tax or Roth contributions. 403(b) investment options are limited to mutual funds and annuities.

One advantage to a 403(b) is universal eligibility for all employees, this makes administrative testing easier. One exception to this rule is if an employer has a 403(b) plan that offers a match for their employees, then the employer is required to follow the ERISA regulations.

A 403(b) plan has the same general contribution limits as a 401(k), but also has the perk of additional contribution opportunities for employees who have worked for a qualified organization for 15 years or more. Qualifying employees can contribute up to $3000 in additional funds per year, up to five years over the federal maximum.

Types of 403(b)s

There are a variety of 403(b) retirement plan options. Below is a list of the more common plans offered.

  • Traditional 403(b) – tax-deferred (earnings are taxed when withdrawn)
  • Roth 403(b) –employee contributes to plan after taxes have been taken out of their wages (savings and earnings are withdrawn tax-free)
  • 403(b)(7) – type of 403(b) plan commonly offered to educational employees
  • 403(b)(9) – type of 403(b) plan commonly offered to church organizations

401k vs. 403b: Which is better?

401(k) and 403(b) plans have a lot of similarities, but one isn’t better than the other. Both plans are tax-advantaged, employer-sponsored retirement plans. Whether participants have a 403(b) or 401(k), each plan will have penalties on early distributions. If a participant chooses to withdrawal before the age of 59 ½ years, they will pay a 10% early withdrawal penalty.

Business structure will likely be the determining factor if debating between a 401(k) vs. 403(b).

Find the Right Plan for Your Business

Retirement Plan Consultants (RPC) is a retirement plan provider working with fee-based advisors to offer customized 401(k) and 403(b) plans. RPC offers diversified retirement portfolios and provides resources to employers and employees to ensure a successful path to retirement.

Contact us for more information on customized retirement saving plans.