What does your annual administration cover?

When we set up a plan there is a fee to draft the plan document and provide any consultations and customizations. But cash balance plans also have required annual maintenance. This is mainly because our actuary has to “certify” your contribution each year.

The following has to be done annually, and is covered by our fee:

• Annual consultations regarding funding issues;
• Actuary sign-off and certification of final contribution amount;
• Plan testing to ensure compliance with DOL & ERISA;
• Preparing employer and employee benefit statements including actuarial valuation reports;
• Ensuring the plan is in compliance with the IRS non-discrimination requirements;
• Coordinating cross-testing with other plans along with non-discrimination testing; and
• Filing required IRS 5500 tax return.

Unfortunately, you have to do all the above on an annual basis. We send out our annual administration invoices in April for the prior year compliance.