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Author: Vile Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25223  
Subject: 401(K) Services Date: 6/24/2004 9:23 PM
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I have just hired on with a very small company (I am the fourth employee). My employer is trying to set up a 401(K) for us. I called my old company but they require $5 million up front. Right now he is looking at Principal Financial Group, The Online 401(K) (appears to be geared for small companies and claims to have access to online stock trades through Schawb), and John Hancock. The John Hancock came as a .dat file I can't seem to open.

Anyway, does anyone have experience with any of these and can anyone recommend another financial institution that would service a very small company? TIA

Cheers,

Vile
NEVER SAY DIE!!!
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Author: drome Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17595 of 25223
Subject: Re: 401(K) Services Date: 6/25/2004 1:04 AM
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Principal dominates the market for employers with under 25 employees who want to set up retirement plans. They do a very good job in my estimation for employers meeting that requirement. Each firm who competes in the market chooses an appropriate demographic (Fidelity, Vanguard, and Schwab are at the upper end in those terms).
Unfortunately, if the firm expands to much above 50 people, they were challenged to perform smoothly. As you only employee number 4, you have a lot of room to grow with them.

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Author: Vile Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17596 of 25223
Subject: Re: 401(K) Services Date: 6/26/2004 11:24 AM
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drome,
"Principal dominates the market for employers with under 25 employees who want to set up retirement plans. They do a very good job in my estimation for employers meeting that requirement. Each firm who competes in the market chooses an appropriate demographic (Fidelity, Vanguard, and Schwab are at the upper end in those terms).
Unfortunately, if the firm expands to much above 50 people, they were challenged to perform smoothly. As you only employee number 4, you have a lot of room to grow with them."


Thanks for the reply drome. I have briefly reviewed the limited data our President sent. I am probably more into finances than any of the other three employees so I offered to help out. One of the things I like is control when it comes to my 401(K). I also like choice. On my last one, we could put some, all or none of our money into a Schwab account. I contacted my last service and they need too much to do it with my current employer.

In the brief review, I found that "The Online 401(K)" offered a similar choice. I am about to do a more in depth review. Again, thanks for the info.

If anyone else out there has an opinion on any of those choices from my first post or knows of another 401(K) provider that might be suitable, please let me know. We are having lunch on Wednesday to discuss our options. Thanks.

Cheers,

Vile
NEVER SAY DIE!!!

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Author: mjdonadio Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17605 of 25223
Subject: Re: 401(K) Services Date: 6/28/2004 6:22 PM
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Vile,

You may want to check the site for the Profit Sharing Council of America at www.psca.org because they will allow you to search for all providers that offer/service small plans.

Best of luck,

Mark

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17673 of 25223
Subject: Re: 401(K) Services Date: 7/14/2004 1:17 PM
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Vile, can you give us an update on your search for a custodian for you small 401K plan?

Have you found anybody else? Found good sources of information?

Please keep us advised.

Thanks

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Author: Vile Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17674 of 25223
Subject: Re: 401(K) Services Date: 7/15/2004 5:32 AM
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pauleckler,
"Vile, can you give us an update on your search for a custodian for you small 401K plan?

Have you found anybody else? Found good sources of information?

Please keep us advised."


I actually had only two weeks to research it. I thought it was more important for people in the company to be able to contribute than for me to scrabble around trying to find the perfect company.

Mjdonadio gave me the best piece of info in this post:
http://boards.fool.com/Message.asp?mid=20955005

I was able to do some minor research into the site he found and it appeared to be at least a good jump off point. Unfortunatly I am a detail man and I didn't feel I had the necessary time to do proper research. The president of the company called a meeting to discuss the three plans they had been given by their financial advisors. They were The Online 401 (K) Plan, John Hancock and Principal.

The Online 401 (K) had excessive fees IMHO but they did offer a Charles Schwab trading account which was an option I was interested in. Unfortunatley the other members of the company aren't that interested in managing their 401 (K)s. They just want a place to dump their money and forget about it. It struck me at the meeting that most people in the company (I hope to help grow it significantly) would want the same thing. I thought it was more important for them to be able to choose from a wide variety of funds and to be able to do it right now rather than wait for me to finish my research. Principal seemed to have the most reasonable fees and the widest fund selection. I am not a big fan of funds but as I said, most people just want to dump their money in one and forget about it.

Being uninterested in it, the president and the other employees let me make the pick since they knew I was most interested which I thought was cool since I wasn't even an official employee yet. So I went with Principal. I figure we'll let the company grow for a year or two and then, assuming it does grow, I will pursue the research in interest and recommend a change at an opportune moment. Who knows, maybe Principal will pick up a trading account option later.

Thanks to everyone for all the info.

Cheers,

Vile
NEVER SAY DIE!!!

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17675 of 25223
Subject: Re: 401(K) Services Date: 7/15/2004 12:37 PM
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Thanks for the update, Vile.

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Author: kewilliam Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17678 of 25223
Subject: Re: 401(K) Services Date: 7/16/2004 1:27 PM
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Hi there..

I, too, am interested in setting up a 401K for a small business. My wife is a physician and she joined a 4 physician practice that does not have a 401K. So I am trying to do the legwork for her.

It doesn't seem like any of the other people in the practice are overly interested in contributing and the owner of the practice probably will not match any contribution. But we want to shelter some income and be able to re-qualify for the ROTH IRAs.

I checked out www.pcsa.com and I cannot find Online 401K or John Hancock. Which heading do I look under for these contact #s? Do you have any names of people that have helped you? We would love to have stocks (as compared to mutual funds) as an option in our 401K plan.

I hope there is not a huge expense setting up and maintaining a 401K plan because judging from the level of interest so far, my wife and I may have to bear the cost of the entire program ourselves.

Any help is appreciated.

Kevin




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Author: Vile Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17688 of 25223
Subject: Re: 401(K) Services Date: 7/16/2004 9:39 PM
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kewelliam,
"I checked out www.pcsa.com and I cannot find Online 401K or John Hancock. Which heading do I look under for these contact #s? Do you have any names of people that have helped you? We would love to have stocks (as compared to mutual funds) as an option in our 401K plan."

I believe they got most of their info from a financial advisor at Northwest FCU. The Online 401(K) can be found at:
www.theonline401k.com

They charged like $180 per account, I think per year. I can send you what I got as far as a quote or information from all three. They are mostly pdf format. Just pop me an email to respond to and I will forward all the info. On top of the $180 they wanted another annual fee of like $1,000 or so. I am speaking off the top of my head though. Better to go to the website or mail me.

As a side note, I used Diversified which had something called a Personal Choice Retirement Account (PCRA). It was a Schwab account and I did all this through my former company. There were no costs to me other than the usual trade commissions. I rolled everything over in place into a standard IRA and got to keep all my equities and everything, still no fees. I really like this option and The Online 401(K) may be worth looking into.

Good luck.

Cheers,

Vile
NEVER SAY DIE!!!

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Author: kewilliam Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17699 of 25223
Subject: Re: 401(K) Services Date: 7/19/2004 9:28 AM
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Sure Vile that would be great. Any info would be GREATLY appreciated.

I couldn't find your email so here is mine: kewilliam@earthlink.net

Thanks again.

Kevin

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17924 of 25223
Subject: Re: 401(K) Services Date: 10/21/2004 12:26 PM
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See also 42771 and 42780 on the Retirement Investing Board

http://boards.fool.com/Message.asp?mid=21479463&post=true

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25019 of 25223
Subject: Re: 401(K) Services Date: 3/4/2013 12:33 AM
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Also see the thread at message 25017 on this board.

http://boards.fool.com/better-401k-administration-30571858.a...

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