Owner K® Overview
The Edward Jones Owner K® program is a cost effective option for companies with no employees other than the owner (or owner & spouse).
The Edward Jones Owner K® program has the following requirements:
- The company’s fiscal year must be the calendar year.
- There can be no non-owner employees who either are, or will become, eligible (with the exception of the owner’s spouse).
- All plan assets must be held in Edward Jones investment accounts.
Prospects not meeting these requirements would need to use Benetech’s standard owner-only 401(k) program (Benetech’s standard owner-only fee schedule would apply).
Edward Jones Provides Owner K® Documents:
Owner K® plan documents are provided by your Retirement Services Department (RS). RS also provides client-requested amendments to the plan document, as well as IRS-required compliance amendments and document restatements, as needed.
Edward Jones plan documents do not allow for loans. If clients or prospects want to allow for loans, they would need to use Benetech’s standard owner-only 401(k) program. (Benetech’s standard owner-only fee schedule would apply.
RS provides basic document services only. RS cannot provide assistance in administrative or procedural matters, including whether or not a prospective Owner K® client meets the 5500-EZ requirements.
Hiring Benetech as TPA:
The client may also hire Benetech to provide record-keeping services, which includes contribution calculations, Form 5500-EZ preparation, and assistance in administrative and procedural matters. Please note that hiring Benetech is independent of establishing the Owner K® plan (which is done when the client signs the Owner K documents) and investment account setup.
An Owner K® plan that meets the requirements for using Form 5500-EZ does not need to file with the DOL/IRS until assets exceed $250,000. However, to avoid miscommunication when establishing a new Owner K plan, it is generally a good idea for the FA to let the client know that Edward Jones provides document services only, and that if assistance in administrative or procedural matters is important, the client should hire a TPA (e.g., Benetech) beginning with the first year of the plan.
Benetech’s basic Owner K® fees assume the company meets the requirements for using Form 5500-EZ (explained by IRS in the online Form 5500-EZ instructions). Companies not eligible for Form 5500-EZ must file a full Form 5500. The reporting requirements for the full Form 5500 are more extensive than for Form 5500-EZ, so additional fees apply in such cases (see Benetech’s fee schedule).
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