Here things get a little familiar for companies with pre-existing stand-alone 401k plans (but may need to be discovered by those without plans).
Tag "PEP"
If plan sponsors assume things can return to the pre-Covid normal, they risk exasperating existing problems. Theyâre there and cannot be ignored.
The biggest issue when it comes to access is cost. Itâs not just the plan sponsorâs sensitivity to higher costs. Itâs the service providerâs ability to keep those costs low.
Before you start to panic, take a deep breath and relax. The retirement savings industry is an aircraft carrier. It canât turn on a dime.
Nonetheless, there is a way to short-circuit this time-frame. You can do it, but youâve got to really want to do it.
One of the biggest risks inherent in MEPs/PEPs is coordinating all of the many moving pieces. Hereâs why people might be wrong to think they know enough about assembling a 401k MEP/PEP and regulatory compliance only heightens the potential liability.
Do you know the answers to the most important MEP/PEP questions â or do you only think you know the answers to the most important MEP/PEP questions?
Unless state-sponsored efforts can defy the stultifying reality of any political process, they are unlikely to pivot fast enough to overcome the fast-paced offerings coming from these private sector offerings.
He also reveals the greatest misconception regarding MEPs, what the SECURE Act really did, and when we might begin to see the mass media start paying attention.
“As far as adopting employers, I would recommend an ERISA attorney because an MEP isnât the right fit and fiduciary solution for every plan sponsor.”
