Similar to other MEP programs, 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.
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 MEP, there is no longer the need for individual employers to file form 5500 or perform costly annual audits. These functions are still performed but only done so at the plan level.
401kDIRECT provides daily valuation recordkeeping for the DIRECT MEP while administration and compliance is handled by local TPAs. Unlike other MEPs on the market, the DIRECT MEP gives local TPAs the opportunity to provide their expertise in Plan Design and Compliance to each adopting employer.
Registered Investment Advisors 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 please visit: www.401k-direct.com.
TPAs and Advisors who would like to consider offering the DIRECT MEP should contact 401kDIRECT at 800-571-5104, ext. 2, or by email at info@401k-direct.com.
401kDIRECT, formerly PENTEK Pension Services, is headquartered in Campbell, California, with offices in Chicago, Illinois, and Columbus, Ohio. 401kDIRECT has specialized in Retirement Plan Services since 1984, offering a range of daily recordkeeping and administrative solutions for retirement plans. With true open architecture and full fee disclosure, clients are able to minimize their costs and improve plan services.
