An ADP news release said the offering is available to employers who own 100% of their business or are partners in a business with no full-time employees other than a spouse.
With this offering, owner-only businesses can maximize their retirement savings by contributing as both an employer and an employee to a Solo(k) plan, ADP said. Other benefits include the ability to take out loans from the account, submit additional catch-up contributions (for participants age 50 or over) and consolidate rollovers from other eligible plans, including traditional IRAs, 401(k)s, and SEP’s, the company said.
Clients also get ADP’s help in plan design, contribution processing, payroll integration for ADP payroll clients, compliance support, and loan administration services. Additionally, ADP provides various planning tools, including a participant Web site, automatic account rebalancing and the option to automatically have deductions increase on a specified date each year, according to the announcement.
“We’re seeing an increasing number of owner-only businesses looking for cost-effective, flexible and easy-to-manage retirement savings plans,” said Kendall Kay, Vice President, Marketing, Strategic Planning and Business Development, ADP Retirement Services, in a news release. “This offering appeals to them because it provides an excellent savings potential, with a significant reduction in the administrative burden.”
For owner-only businesses who would like more information on ADP’s new Solo(k) program, call 1-800-432-4015 extension 415 or visit www.adp401k.com .