Hartford one of the nations leading high quality retirement plan firms is waiving Maintenance, Setup and Plan Participant fees for 401(k) type plans on applications received through 12/29/2006 in good order.
This could mean substantial administrative cost savings to business owners who are considering changing payroll deduction savings plan providers. This could be an excellent opportunity to improve current plan investment selections simultaneously. In many cases this will also facilitate an improvement in administrative ease with a well known, reputable, proven provider.
On a case by case basis, Hartford may also be able to "bonus up" accounts to negate the early surrender charges on existing participant accounts at other companies. This can be a viable solution to negate a possible final unresolved roadblock to otherwise improving the company plan options by transferring to another company. Participant’s interests need to be taken care of in a transfer type transaction too.
For a real life example, one firm has 26 eligible employees, with about $800,000 in assets. Participants are adding $80,000 a year now in payroll deduct contributions. This firm will be able to save about $2,020 in fees this year on this limited time program.
Results and savings will vary and will be on a case by case basis.
In all situations obtaining a cost savings quote and detailed plan comparisons should cost the company little more than a small amount of staff time. This would be small internal investment to determine the value of this program for individual businesses and their employees. For questions and assistance please contact a professional Advisor.
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