This plan is an open platform MEP designed for third party administrators (TPAs) and investment advisers who want to offer clients a multiple employer plan, but maintain control over plan design and investments.
The DIRECT MEP is a qualified 401 (k) plan that allows unrelated employers to reduce costs and fiduciary liability by participating together in a single plan.
According to a new release, the employer is able to minimize the liability of running the plan and reduce administrative costs by delegating the Plan Sponsor and Trustee Responsibilities to Summit Trust Company. Under the program individual employers will not need to file form 5500 or perform annual audits.
401kDIRECT provides daily valuation recordkeeping for the DIRECT MEP, while administration and compliance is handled by local TPAs. The DIRECT MEP allows local TPAs to provide their expertise in plan design and compliance to each adopting employer.
Registered investment advisers (RIAs) are able to offer the plan to their clients acting as a 3(38) or 3(21) investment manager as defined under ERISA. They have access to hundreds of mutual funds and ETFs to customize the plan investment menu to meet the needs of their clients.
For more information on the program, visit www.401k-direct.com.
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