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Add SWAG to Your 401(k)

You have been selected because we can help your company save time and money by

  • Delaying or avoiding an independent 401(k) audit; and/or,
  • Reclaiming unvested employer contributions held in terminated participants’ accounts
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Avoid or Delay a 401(k) Audit

The Department of Labor requires employers that offer 401(k) plans to obtain an independent plan audit under the following is circumstances:

  • There are at least 100 eligible employees; or
  • There are at least 120 eligible employees plus terminated employees with account balances remaining on the plan

Scenario: Company A has 82 eligible (active) employees and 48 terminated employees; 130 total. Because the total eligible employees plus terminated employees with balances exceed 120, an independent audit costing up to $15,000 is required. Monterey Wealth Rollover Education Services works with Human Resources and the terminated employees to assist them with moving their money out of the plan.

Benefits to You: 

  • Avoid wasting time on an audit
  • Save up to $15,000 in unnecessary fees
  • Reduce your fiduciary liability
  • Eliminate unnecessary cyber-security risk of former employee accounts on your plan
  • Vesting schedule? Free up unvested employer contributions to pay for plan expenses

Maximize the Benefit of Your Vesting Schedule

Why have a vesting schedule if you do not utilize it?

Successful businesses are constantly trying reduce their Accounts Receivable to free up working capital. However, few realize there are significant dollars in unvested employer contributions in terminated employee accounts that can be used to pay plan expenses and/or reduce future employer contributions. 

As co-fiduciaries on your 401(k) plan, Monterey Wealth works to lower your (and our) fiduciary risk by educating terminated participants on their distribution options and to free up valuable working capital for your firm. 

Client Case Study

Problem: A cash-strapped firm was approaching a 401(k) audit with 97 total participants (30 terminated) in the plan and trying to delay that audit as long as possible. The plan had a 6 year graded vesting schedule. 

Action: Monterey Wealth was hired as the 401(k) advisor and we implemented our Rollover Education Services.

Result: Monterey Wealth Rollover Education Services removed 20 terminated participants from the plan which resulted in the following:

  • Delayed the need for a 401(k) audit for years to come (up to $15,000 each year) 
  • Unlocked $65,000 in unvested employer contributions which was used to pay plan expenses and/or reduce future employer contributions.  This valuable working capital was re-deployed to growth opportunities for the client.
  • Reduced the firm’s fiduciary liability and cyber-security risk
Your 401(k) plan has a similar fact pattern and we would love to help. Please click on the link below to schedule time for us to discuss your specific plan.