Employer Frequently Asked Questions

Account Set Up

• What happens after I sign my plan documents?

Profit Sharing

• Benefits of profit sharing contributions

Compliance

• My plan failed the ADP compliance test. How and when are corrections made?
• When should I run my first payroll after implementing 401(k)?
• Why is compliance testing necessary?
• Compliance testing: what plan sponsors need to know
• What is Form 5500?
• Why do relationships in Controlled and Affiliated Groups matter?

Safe Harbor Plans

• My plan has Safe Harbor status. Can I change my employer contribution mid-year? Can I add a Safe Harbor feature to my plan mid-year?
• Safe Harbor deadlines - existing plans
• Safe Harbor deadlines - new plans

Automatic Enrollment

• The advantages of automatic enrollment
• The downsides of automatic enrollment

Employer Matches

• What is a true-up?
• Different kinds of employer matches

Contribution Limits

• What is the Annual Additions Limit? (Max contribution (employer + employee) you could make)
• What is the Annual Compensation Limit?

Employee Eligibility

• Why are some of my employees ineligible?

Plan Transfer

• What are the steps to transfer or merge the saveday plan to another 401(k) provider?

Plan Termination

• What are the steps to terminate a saveday 401(k) plan?