The NH High Tech Council is now offering a member-exclusive 401k plan, making it one of the first tech organizations in the United States to offer members access to this new Multiple Employer Plan (MEP) 401k. The MEP 401k is managed by UBS Financial Services.
“We are very pleased to be able to offer this new benefit to our members and their employees. Council members can now offer 401k plans at a lower cost and with less administrative responsibilities than traditional 401k plans. In a competitive job market, this offering can also be a core differentiator for prospective hires,” says Toral Cowieson, chair of the NH High Tech Council board of directors.
Based on national data, the vast majority of small companies (under $5 million in annual revenue) do not offer 401k plans to their employees. According to Spark 401k Business Planning Index, 94 percent of companies believe that offering a 401k plan is key to recruiting and retaining employees, yet only 14 percent of employers nationwide offer these plans. The Council’s 401k plan provides a range of benefits, including cost savings on investments, no individual form 5500 reporting, the most fiduciary protection as allowed by the U.S. Department of Labor, Roth and profit sharing, and customizable 401k plan design options involving eligibility, matches and vesting schedules.
The plan will be directly serviced by UBS Financial Services and local staff in the Concord office. The 401k provider is Slavic 401k, a company that has focused on providing multiple employer 401(k)s for more than 30 years. Membership associations such as the Council are permitted by the Department of Labor and the IRS to offer a 401(k) to their membership. As a result, from a government reporting standpoint, the Multiple Employer 401(k) is treated like one large plan and is able to create efficiencies, fiduciary protection and expense reductions.
For more information visit nhhtc.org or call 603.935.8951.
Current Issue - May 2024