Modify an Existing Plan
Does your business already have a retirement plan in place but only offers a limited number of mutual funds as investment choices? Let Freedom Growth show you how your small business plan can be modified to include a self-directed component. This will expand the investment options to all of those allowed by law, not those allowed by your current custodian.
Your existing plan can be modified to incorporate a self-directed component a couple of different ways. The first is to determine if your plan allows in-service distributions. If it does, employees will be able to roll the allowed amount of funds into a newly established self-directed account. Currently, about 16% of all small business plans allow for some type of in-service distribution. What if your plan doesn’t allow in-service distributions? Freedom Growth will work with our ERISA professionals to expand your plan to include this functionality.
Another way to modify your 401k is by adding a self-directed custodian to your plan. Everything else about your plan will remain the same, but employees will have the option of transferring eligible funds from the current custodian to the self-directed custodian. The funds in the self-directed custodian can then be invested into a wider range of investment options.
Which way is best for your company? That depends on your current plan. Contact Freedom Growth today for a free consultation. We’ll work with you and your plan administrator to determine the best method of adding a self-directed component into your plan for you and your employees.
Establishing a New Plan
Are you a small business in need of a retirement plan for you and your employees? Consider a self-directed 401k plan if:
- You’d like to match employee contributions on a dollar or a percentage basis.
- You would like more investment choices that aren’t limited to the stock market.
- You want to promote long-term employment permitting the employee to own a certain percentage of the matched funds over time.
- Your employees want to be vested 100 percent in the amount contributed from their pay.
Freedom Growth will act as your self-directed consultant and will help you establish a retirement plan that is ERISA compliant, inexpensive to operate and allows you and your employees to self direct their retirement savings.
Whether you’re establishing a new retirement plan or amending an existing one, Freedom Growth will be your guide.
Inexpensive to Implement
How much will this cost? Well that depends on your specific situation. Freedom Growth’s 401k consulting team will provide you with a detailed project plan and costs prior to getting started. You’ll know what to expect and when to expect it before ever spending a dime. And the best part? The costs to amend your plan are tax deductible!
