401k Multiple Employer Plan by UAP
There are two different kinds of 401k plans: Single Employer plans and Multiple Employer plans. UAP uses a Multiple Employer Plan (MEP), which has some distinct advantages over a single employer plan.
This benefits your company in a number of ways.
First, your plan will be covered under the UAP 401k plan audit.
This is especially valuable if you have more than 100 eligible employees. The audit generally costs about $5,000, which means that you save that money by being a part of the larger plan.
Second, you hand off the fiduciary liability to UAP, the plan sponsor.
UAP and the 401k provider work together to bear the fiduciary responsibility for your company, helping your plan stay compliant with respect to the Internal Revenue Service and Department of Labor.
Third, you take advantage of economy of scale.
Because there could be hundreds of businesses like yours participating in the master plan, the pooling of resources allows the average investor to have access to top shelf mutual funds at some of the lowest costs. Institutional shares, Admiral Class shares, and other such funds are just some of the highest quality funds that you can invest in but couldn’t before.
Finally, you hand off the entire administration of the plan to somebody else.
Rather than working with a broker, an advisor, and a TPA, you and UAP work with the 401k provider, which is fully bundled and handles all of these roles, therefore allowing UAP to process the 401(k) contributions as they process your payroll.
If you have questions pertaining to the administration of a Multiple Employer Plan, please call and speak to UAP.