Overview – Self-Directed Safe Harbor 401(k)
The Edward Jones Self-Directed Safe Harbor 401(k) Plan allows maximum investment flexibility through the use of individual brokerage accounts for each participant.
Edward Jones 401(k) documents are used for this program. Benetech provides cost-effective annual record-keeping and reporting services.
For information regarding investment account setup or ongoing maintenance of plan documents, contact RS at #83 or by sending a Service request, or visit the Self-Directed Safe Harbor 401(k) program page on JonesLink (Investments & Services > Retirement Planning > 401(k) Safe Harbor > Establish).
The Jones Self-Directed Safe Harbor program has the following requirements:
- Company’s fiscal year end must be December 31.
- Plan must use Safe Harbor provisions.
- Profit sharing allocation must be “pro rata” or “integrated” (Tiered/cross-tested discrimination testing is not available).
- All assets must be held in individual participant accounts.
- All plan assets must be held in Edward Jones investment accounts.
Prospects not meeting these requirements would need to use Benetech’s standard self-directed 401(k) program (Benetech’s standard fee schedule would apply).
Services Provided by Edward Jones RS:
Edward Jones 401(k) plan documents are used for this program. Although Benetech generates the initial plan documents, Edward Jones Retirement Services (RS) provides ongoing document support. Services provided by RS include:
- Client-requested amendments.
- IRS-required compliance amendments and document restatements.
- Ongoing Safe Harbor notices.
- Participant notices and forms, including for participant enrollment, beneficiary designation, and distribution processing.
- Written loan program for plan, and promissory note and amortization schedule for each loan issued.
Edward Jones fees for providing these services are not included in Benetech’s fee schedule.
Services Provided by Benetech:
Benetech provides annual record-keeping and reporting services, including:
- Initial Plan Document & Safe Harbor notice.
- Assistance in procedural and administrative matters.
- Trust accounting.
- Allocation of gain/loss and forfeitures.
- Top Heavy determination.
- Maintenance of vesting records, and verification of vested percentages.
- Annual calculations and allocations of match and profit sharing contributions.
- Annual participant statements and Summary Annual Report.
- Preparation of Form 5500 and related schedules.
When setting up investment accounts, please make Benetech an “interested party” to receive copies of all monthly statements. To provide accurate record-keeping services, Benetech requires all monthly statements for each participant. Missing statements will delay the completion of annual record-keeping work for the plan.
Benetech enters all investment transactions into our trust accounting system to properly record-keep the plan (including properly allocating gain/loss between contribution types). Benetech’s base fees include 200 transactions for the plan. A $0.50 per transaction fee applies to transactions in excess of 200.
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