As part of the SECURE Act, passed in late December of 2019, a provision allows for employers of any size to pool their retirement plans into a single 401(k) plan called a Pooled Employer Plan (PEP). Many small businesses are unable to bear the cost of creating a qualified retirement plan. The PEP was created in the SECURE Act to help encourage employers to offer a qualified retirement benefit to employees. The PEP established a way for unrelated employers to participate in a plan with one another in order to lessen the administrative burden incurred by some single employer plans.
- Reduced administrative costs
- Limit fiduciary responsibilities
- One audit for the entire plan (only one Form 5500 for member of the PEP)
- Some flexibility in plan design features
We can help evaluate whether the PEP plan or single-employer plan is right for you. Also, we’ll analyze design features, QDIA decisions and assist with ongoing monitoring of PEP service providers.
Let us know if you or someone you know is starting a qualified retirement plan for their business.
Matt and Andrew