This plan allows clients to customize their options to meet their specific organizational and financial needs.
What is a 401(k) Plan?
A 401(k) plan allows employees to plan and save for retirement, by investing a portion of their income on a pre-tax basis. Money saved now will be taxed later at a presumably lower rate.
Why offer employees a 401(k) plan? Saving for retirement?
In the past, pension plans and social security benefits were the main source of income for retirement, however, many people today do not have access to a traditional pension plan, and the future of social security is uncertain.
You may also want to offer a 401(k) plan to your employees for the following reasons:
- Employee retention
- Reward employees for service
- Employee Incentive/Profit sharing
- Complement company’s benefit package
Why should clients participate in the Global PEO 401(k) Plan?
- It is significantly less expensive then a client sponsoring a single employer plan
- Global PEO, formerly Southeastern Companies, assumes full responsibility for plan documents and compliance
- Global PEO, formerly Southeastern Companies, provides all administrative support and customer service for the plan
- Global PEO, formerly Southeastern Companies, assumes testing responsibilities and fiduciary liability for the plan
What options does the client have in the plan design?
The client can tailor key parts of the plan to fit their organization:
Eligibility Requirement Options
- One Year of Service (1000 hours of service in a 12 consecutive month period) OR
- Select how many months of service you want up to, but not exceeding 12 months OR
- One hour of service AND
- Attainment of age 21
You may elect Grandfathered Eligibility to waive the eligibility requirements for those employees who are actively employed with you at the time you adopt the Global PEO 401(k) Plan.
Employer Contribution Options
- No matching contributions to the plan OR
- Discretionary Matching Contributions OR
- Profit Sharing Contributions with your choice of crediting formula: Pro-rate, Integrated or Cross-Tested AND/OR
- Safe Harbor contributions
What investment options are available to my employees?
There are 44 investment options ranging from conservative to very aggressive offered through Hartford Life as follows:
- Eaton Vance Worldwide Health Science
- Davis Financial
- Eaton Vance Utilities
- Oppenheimer international Growth
- Templeton Foreign
- Janus Adviser Worldwide
- AIM Small Cap Growth
- MFS New Discovery
- Goldman Sachs CORE(sm) Small Cap Equity
- T. Rowe Price Small Cap Stock
- Fidelity Advisor Value Strategies
- Goldman Sachs Small Cap Value
- Franklin Balance Sheet
- Franklin Small-Mid Cap Growth
- Davis Opportunity
- Hartford Capital Appreciation HLS
- Lord Abbett Mid-Cap Value
- Janus Twenty
- MFS Strategic Growth
- American Century Ultra
- Fidelity VIP II Contrafund
- Oppenheimer Capital Appreciation
- Federated Capital Appreciation
- PIMCO Renaissance
- Mutual Shares
- Hartford Index HLS
- AIM Basic Value
- American Century Income & Growth
- Hartford Dividend & Growth HLS
- Janus Balanced
- Federated International High Income
- Hartford High Yield HLS
- Lord Abbett Bond-Debenture
- PIMCO Total Return
- Hartford Bond HLS
- Janus Adviser Flexible Income
- Goldman Sachs Government Income
- Hartford Money Market HLS
- T. Rowe Price Pers. Strategy Growth
- Franklin Templeton Conserv. Target
- T. Rowe Price Pers. Strategy Balncd.
How do your employees benefit:
Employees, who have met the clients’ selected eligibility requirements, may enroll in the plan on the first day of any calendar quarter: January 1, April 1, July 1 or October 1.
Plan participants may increase or decrease the amount that they are contributing on the first day of any calendar quarter. They may stop their contributions at any time.
Plan participants have unlimited transfer capabilities between funds free of charge via Hartford Life at 800-339-4015 or online at http://retire.hartfordlife.com.
Plan participants may borrow up to $50,000 or half of their vested account balance through the plan’s loan feature.
Plan participants may withdraw from their account in the event of 1) retirement, 2) termination of employment, 3) death, 4) disability, or 5) financial hardship.
Employee deferrals/contributions are always 100% vested.
Company contributions, if any, are subject to a 6-year graded vesting schedule.
Daily valuation of funds.
Plan participants will receive quarterly statements and newsletters.
Retirement Plan Consultant:
John Monte CLU
JMI Group
3490 East Lake Rd Suite B
Palm Harbor, FL 34685
727-771-1200
727-771-6088 FAX
john@montefinancialservices.com
Investment Platform:
Hartford Life Insurance
Hartford, Connecticut
401(k) Plan Compliance:
American Pension Services
Tampa, Florida
401(k) Plan Administrator:
Global PEO, formerly Southeastern Companies, Inc.
Tampa , Florida