Get the Facts
What is a 401k Plan?

A 401k retirement Plan allows eligible employees to direct their employer to put a portion of their salary directly into an investment account with no current income tax due on the amount deposited to the Plan. In addition, the employer may contribute "matching" contributions and/or "profit sharing" contributions to the Plan. Earnings on the investment account accrue tax-deferred until withdrawn.
Why start a 401k?
An employer may want to establish a 401k plan for any of the following reasons:
- To help employees save for retirement on a tax-favored basis
- To attract employees who want the benefits of a 401k plan
- To bonus employees with matching and/or profit sharing contributions
- To retain employees by rewarding length of service through the use of a vesting schedule
How do I start a 401k?
You need to:
- Choose a Plan design and document it
- Communicate the Plan to employees
ez401k.com can do this for you now…just click on Start a 401k Plan
How do I run a 401k Plan?
Once the Plan is established you will need to:
- Send deposits to the Plan's investment account
- Send withdrawals to employees as requested and report such amounts to the IRS
- File an annual information return with the IRS and Department of Labor
ez401k.com does all of this for you. Our experienced professionals do all the work for one low fee.
What investments are available?
ez401k.com's alliances provide a wide selection of funds from a variety of fund families. The funds range over all asset classes and can assist you, your retirement committee or financial advisors in designing a plan to obtain the relief from fiduciary responsibility outlined by the Department of Labor’s §404(c) regulations. Click here for a list of available funds and recent investment performance.

Note: The list of available funds and recent investment performance is based on information provided by Nationwide Financial Services, an alliance partner of ez401k.com. ez401k.com provides this list for informational purposes only. This is not an offer to sell securities.

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How much does it cost?
Our fees are low and simple to explain:

Setup: One-time fee of $401. This fee is 100% refundable if you are dissatisfied for any reason within three months.

Quarterly Maintenance: $450 plus $10 per participant. This fee covers:
- Quarterly benefit statements to employees by direct mail
- Quarterly and annual reports to management on the Internet
- Internet access and toll-free telephone access (in English, Spanish and 140 other languages) for employees to check account balances and execute trades
- Internet access for employer to check Plan level and participant level data
- Processing deposits and data electronically on the Internet
- Processing withdrawals - employees contact ez401k.com directly
- Compliance and nondiscrimination testing and direct filing of IRS and Department of Labor forms
- Employee e-mail or toll-free telephone access to our Participant Service Center
- Employer e-mail or toll-free telephone access to our Plan Service Center consultants for advice on Plan operation.
Are there any other fees?
Participants pay a $125 fee for Plan loans and $100 for other withdrawals. Certain investment programs that have built alliances with ez401k.com may charge participants nominal monthly or annual fees that are billed directly to each participant's investment account. In addition, these programs typically charge asset-based fees to participants' accounts. Full disclosure of these fees is provided by the account documents of each investment program.
Are there any hidden fees?
No. All fees involved are described above. Certain unusual consulting projects may result in extra fees. These projects are not part of the routine 401k operation and include tasks such as: Plan termination or merger with another Plan, court orders affecting the Plan, or new legislation mandating changes to the Plan document. None of these charges will apply without your advance approval.
How do ez401k.com's fees compare?
ez401k.com has the most competitive fees in the industry. Our services include total outsourcing of the Plan. Our professional staff includes individuals with over twenty years' experience with 401k plans. We deal directly with participants by email, fax, letter or telephone. We prepare and directly file government forms. We are also the only online 401k company to provide IRS/Department of Labor audit representation.
I already have a 401k plan. Can I use ez401k.com?
Yes. Just complete the Start a 401k process and include a description of your current Plan. We will respond with a request for additional information about your existing Plan.
 

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