Small Business 401k
Small Business 401k

Online and Offline Plans Available

 

An "Online" versus "Off-Line" 401k plan - product comparisons

Our "online" and "offline" products differ in a few key ways.

Where the Software Is Housed: In our online plans, the software used to process your retirement plan data and by which you and your employees access information about your company plan and interact with it is housed on secure servers that you access online (via the Internet). This means that you and your employees have access to your customized system anywhere you can connect to the Internet. In contrast, in our offline plans, your plan-specific software is housed on your desktop PC.
What the Software Can Do: In our online plans, your customized system handles both user-accessible plan administration as well as plan participation. That is, not only do authorized administrators (whether you, if using our self-serve product, Small Business 401k, or our professional personnel, if using the full-service product, The 401k Solution) have anytime, anywhere access to the system, but so do your employees. They can log into the Plan Participation Gateway via almost any Internet connection to read about your company plan, join it, select and alter personal investment choices, model and apply for 401k loans (if your company chooses to offer such within its plan), monitor account balances, print account statements, and more. In contrast, in our offline plans, plan participation is done the old-fashioned way: via paper. Plan-specific forms and information are housed within the PC-based software and can be printed for employees on an as-needed basis.
Renewal: With both our online and offline products, the right to use the software systems comes with payment of your annual fee (see our Pricing section for details). For online product users, upgrades to the new year's software occurs transparently; we update everything on our end, and you do not have to do anything. In contrast, for our offline customers, they receive a CD of their upgraded software, which they then load into their PC; this takes only a few moments.
Price: As you might expect, our online products cost a bit more than the offline, simpler product.

Whether you choose one of our online products (Small Business 401k or the full-service administration version, The 401k Solution) or our offline product, 401(k) Easy for the PC, we customize your system to the plan and administration design options you choose. Contact us if you have any questions about the differences between the products or want help evaluating which best suits your company's retirement plan needs.

Product 1: Small Business 401k
online self-service plan administration + participation

Small Business 401k is by far our most popular 401k, particularly with small and medium-sized businesses. This web site of course explains in detail all that Small Business 401k has to offer; here are a few of the highlights that clients tell us particularly drew them to the product and have them staying with it year after year:

Price - Our clients find the setup fee and annual fee associated with Small Business 401k extremely palatable.
Investment Volume + Flexibility - The array of investments available via Small Business 401k is another big draw. Not only do clients favor the extensive array of investments allowed, they also like that we are not affiliated with any investment house and that we do not charge any fees regarding investments.
Ease of Use - Most clients find spending 15 or so minutes a month on Small Business 401k well worth the thousands of dollars a year of savings in 401k administration fees charged by most full-service plan providers.
Expertise - Clients......

Visit our Product Demos page to learn more and to try out a sample customized online system.

Product 1b: Small Business 401k for one
for one-person companies

The 401k plan's popularity lies in that it enables people to shelter a significant portion of their income from current income taxes. In some cases, a 401k plan enables a person to shelter more than twice as much as do other qualified retirement plans (money purchase pension plans, simplified employee pension (SEP) plans and savings incentive match plans for employees (SIMPLEs), more specifically). Until recently, however, a 401k plan needed multiple plan participants. It was not an option for one-person companies and the like - again, that is, until 2002. The one-person 401k plan is now a reality.

As the name suggests, Small Business 401k for One is a version of our most popular product, Small Business 401k, written to meet the regulatory, administrative and participation needs specific to one-person 401k plans.

Small Business 401k for One is for owner-only businesses (including spouse) and businesses with employees that can be legally excluded from participating in the company plan.
Small Business 401k for One costs $695 per year + a one-time, first-year-only set-up fee of $595.
Small Business 401k for One allows for the same immensely broad spectrum of no-load investments as well as self-directed brokerage accounts as is available with our multipartite Small Business 401k plans (investment flexibility not common in most one-person 401k plans).
Small Business 401k for One allows for 401k loans.
Small Business 401k for One allows for the spouse to participate, too.
Small Business 401k for One can affordably be converted into a multi-participant 401k plan, should the need arise (if your company expands and takes on additional employees, for instance).
Small Business 401k for One can process rollovers from SEP, SARSEP, SIMPLE IRA, traditional IRA, rollover IRA, Keogh, 401k, 403b and 457 plans.

Below are some key draws of the one-person 401k plan in general:

The employer/business owner may contribute up to $41,000 per year, depending on income.
401k contributions come from "pre-tax" dollars. Contributions are not subject to income tax until withdrawn from the 401k account.
Earnings on 401k investments are also tax-deferred until withdrawn.
Salary deferrals can equal up to 100% of compensation, up to an annually-adjusted maximum of $15,000 (as of 2008).
Profit-sharing contributions up to 25% of salary can also be made.
Participants age 50 and older can contribute an additional "catch-up" contribution of up to $5,000 annually (as of 2008).
Tax-deferred retirement savings housed within a 401k or other authorized plan are generally excluded from bankruptcy proceedings. Outstanding 401k loans, however, are generally NOT erased by bankruptcy.

You can read further about one-person plans on our 401k Basics page.

Product 2: The 401k solution
online full-service plan administration + self-service plan participation

Pension Service Associates (PSA) has been a trailblazer in the 401k industry for decades. The company has concentrated primarily on the largely-ignored needs of small and mid-sized companies. in fact, our Small Business 401k product grew out of innovations made by PSA.

PSA offers an affordable line of full-service plans - The 401k Solution - that participants rank among the most popular plans in the nation. The plans offer online plan participation similar to that offered within Small Business 401k but all administration duties are handled by PSA personnel (that is, your company does NOT need to do any self-service plan administration).

PSA's 401k Solution is adaptable to companies of any size. Small-company plans are NOT truncated versions of big company plans.
Part of PSA's 401k "solution" is affordability without reduced service. By offering of variety of investment mix-plan pricing approaches, companies can choose whether to absorb all the costs of the plan, split the costs with the plan's participants, or have the plan's participants absorb the costs.
PSA's 401k plans see participation rates that are often nearly TWICE the national average. Investment choice, prompt service, and plan flexibility play major roles in the popularity of 401k Solution plans.
As with Small Business 401k, 401k Solution plans allow for automatic participant enrollment, 401k loans and other popular features. They also offer outstanding investment flexibility akin to that offered Small Business 401k clients.
A typical 401k Solution 401k plan serving 25 eligible employees costs $1,895 a year, depending on the type of investments chosen.
The national average for a 401k serving 25 eligible employees is $6,750 to $20,000 a year (and these competitors' plans often lack the quality service and flexible options standard in 401k Solution full-service plans).

For more information about PSA's 401k Solution as well as the company's other retirement plan offerings - 403b plans, SEPs, IRA's and any other IRS-sanctioned retirement savings plan - visit the 401k Solution web site, www.401ksolution.com, or call (800) 752-4015.