Call us and speak to one of our Retirement Plan Client Advisors for more information: 844-546-5576
New for 2024
Options for Advisors to serve as the Everyday 401(k) 3(38) investment fiduciary for your business owner clients.
Cost and fees for our most popular bundled solutions
All 401(k) plan options come with an assigned client success manager, investment fiduciary services, a co-fiduciary to help with day-to-day running of the plan and integration with many payroll providers. Additional plan options are available.
Third Party Administrative (TPA) solutions are also available to address more complex plan design needs. Download the Everyday 401(k) brochure below and refer to page 6 for more information.
We also have Everyday 401(k) plan options where the Advisor serves as the 3(38) investment fiduciary. Reach out to our Retirement Plan Client Advisors for more details on this.
* A one-time $500 Start-up fee for new 401(k) plans is due upon signed agreement.
* if you are converting an existing 401(k) plan, there's a $750 conversion fee. No Start-up fee is due for conversions.
** the monthly participant fee is typically paid by the participant. The employer may choose to cover this.
State-mandated legislation
There is a developing trend among states to enact legislation requiring employers without retirement plans to enroll their employees in a payroll deduction individual retirement account (IRA) program run by the state. Employers will be required to automatically enroll their employees in the plan unless they actively opt out.
Select one of the four tabs directly below to locate your state. For all those that have passed legislation, you can click on the state in the map (or in the legend) for details.
Last updated: September 2024
- Legislation passed & programs launched
- Legislation passed & programs under construction
- Legislation introduced
- Legislation not recently considered
California
CalSavers Program
- September 30, 2020 – Employers with at least 100 employees
- June 30, 2021 – Employers with 50-99 employees
- June 30, 2022 – Employers with 5-49 employees
- December 31, 2025 – Employers with 1 + employees
Automatic enrollment into a Roth IRA
Employers who don’t offer a workplace retirement plan and have one or more California-based employees.
Employers who fail to comply with the CalSavers program could face penalties of $250 per eligible employee after 90 days of being served notice, and up to $500 per eligible employee if non-compliance extends past 180 days.
Source: https://www.calsavers.com
Delaware
Expanding Access for Retirement and Necessary Saving (EARNS) Program
EFFECTIVE DATES
- January 1, 2025
WHAT TYPE OF PLAN IS OFFERED?
Automatic enrollment into a Roth IRA
WHO MUST COMPLY?
Employers who employed at least 5 employees in the preceding calendar year and have been in business for at least 6 months who don’t offer a workplace retirement plan
NON-COMPLIANCE PENALTY
Employers who fail to comply may be subject to a penalty of up to $250 per employee per year to a maximum of $5,000.
Source: https://earnsdelaware.com/
Legislation has been introduced but has not yet passed in the following states:
- Arizona
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Michigan
- Missouri
- Mississippi
- Ohio
- Oklahoma
- Pennsylvania
- Texas
Legislation has not recently been considered in the following states:
- Alabama
- Arkansas
- Arizona
- Florida
- Georgia
- Iowa
- Idaho
- Indiana
- Montana
- North Carolina
- North Dakota
- Nebraska
- New Hampshire
- New Mexico
- South Carolina
- Tennessee
- Utah
- West Virginia
- Wisconsin
- Wyoming
If you would like to learn more about Everyday 401(k) for your small business clients, call us and speak to one of our Retirement Plan Client Advisors: 844-546-5576
1Under the SECURE Act, tax credits may be available to help you offset your first three years of plan startup costs in an amount equal to 50% of qualified startup costs paid or incurred, but limited to the greater of (1) $500 or (2) the lesser of (a) $250 for each non-highly compensated employee who is eligible to participate in the plan or (b) $5,000. In general, “qualified startup costs” are ordinary and necessary expenses of an eligible employer which are paid or incurred in connection with the establishment or administration of an eligible employer plan, or the retirement-related education of employees with respect to a plan if the plan has at least one participant who is not a highly compensated employee. Employers should be advised to consult their tax advisors concerning eligibility for the credit. The Secure 2.0 Act, enacted December 29, 2022, extended the $5,000/year tax credit for the first 3 years to 100% of qualified startup costs for businesses with 50 or fewer employees.
2Under Internal Revenue Code Section 45E(f), added by the SECURE 2.0 Act, businesses with 50 or fewer employees may qualify for tax credits for employer contributions for eligible employees (i.e., those who make $100,000 or less). In the first 2 years of the plan, the credit is 100% of the employer contribution capped at $1,000/eligible employee, in year 3 of the plan it is 75% of the employer contribution capped at $1,000/eligible employee, in year 4 of the plan it is 50% of the employer contribution capped at $1,000/eligible employee and in year 5 of the plan, it is 25% of the employer contribution capped at $1,000/eligible employee. This credit is phased out for employers with 51 – 100 employees.
The 3(38) Fiduciary Partnership Service is provided by Mesirow and available through J.P. Morgan Everyday 401(k) (“J.P. Morgan”). Mesirow acts as a fiduciary under ERISA Section 3(38) with respect to the services described in the Investment Manager Agreement but is not acting in the capacity of adviser to individual investors. Mesirow is not affiliated with J.P. Morgan or its subsidiaries and affiliates. Mesirow refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. Advisory services are offered through Mesirow Financial Investment Management, Inc., an SEC-registered investment advisor. The Mesirow name and logo are registered service marks of Mesirow Financial Holdings, Inc., © 2023. All rights reserved.