A new 401(k) solution from ForUsAll offers 3(16) and a 3(38)
fiduciary services, allowing the firm to do most of the administrative work for
the plan, including filling in the Form 5500, which it reviews, signs and
submits for the owner, according to David Ramirez, chief investment officer for
ForUsAll. The firm’s 401(k) plugs into most existing payroll providers, Ramirez
says, letting plan sponsors delegate day-to-day responsibility for plan
ForUsAll auto-enrolls eligible employees at a rate of 6%,
which increases automatically 1% each year until the plan participant is saving
at 15%. Plan participants are invested in age-appropriate target-date funds
(TDFs). “As in most auto design 401(k)s, they can opt out or change the
default,” Ramirez tells PLANSPONSOR, “but it is a best-in-class plan design.”
Current savings rates of ForUsAll participants average about 10%, according to Ramirez, who declined to say how many participants are enrolled or the number of plans using the solution.
A 401(k) can run efficiently without an army of experts or
high fees, Ramirez contends, noting that automated features make the product
less expensive, which also means more money for employees. “Promising early
results have been consistent in companies ranging from high-tech start-ups, to
manufacturing companies, to hair salons,” Ramirez says.
The solution’s auto adviser, DAVE, is not an acronym but is
named for the co-founder, Dave Boudreau; Ramirez explains plan participants can
interact with DAVE for explanations of plan options and help in customizing
their 401(k). “It takes about two or three minutes on the phone or on their
computer,” he says.
Features include payroll integration and full-service plan
administration. ForUsAll links with each employer’s cloud-based payroll system
to deduct 401(k) contributions automatically, and add new employees when they
become eligible. The firm’s automated system handles plan administration,
including signing and submitting all retirement-related government forms.
Employers have online access to a plan dashboard that provides plan status at a
glance and the “Fiduciary Vault,” which organizes and secures critical plan
The monthly cost for a small employer is $94, which covers
the first 10 employees. At 10 to 40 employees, the price rises by $5 per
employee per month, and the fee for more than 40 employees is $3 per employee
per month. Plan sponsors typically pay the cost of the plan, Ramirez says.
All-in plan fees for the participants at .55% cover the costs of the mutual
fund, the adviser and the custodian. The plan does not charge any setup fees.
More information is on ForUsAll’s website.