We believe that the lack of retirement savings is a significant economic problem for the U.S., and employer-sponsored pension plans offer a vital tool for workers who would otherwise not save for their retirement. We understand the unique challenges of smaller employers, and have the experience, expertise and partnerships to make their company-sponsored plans affordable and effective.

All employer contributions to the plan are tax-deductible, and you may be eligible for tax credits and other incentives for starting a plan. Also, assets in your plan grow tax-free.

It’s especially important for smaller employers to put a plan in place that meets the needs of employees and the business. One of the first things we do when you become an A&O client is have one of our qualified employee benefits professionals review your plan to determine whether it is the best one for your business.

As your plan administrator, A&O makes it our business to stay informed of all DOL and ERISA regulations – both current and pending – to ensure your plan remains in compliance.

A fiduciary is a person or institution acting on behalf of another person or plan sponsor/company to manage their assets in good faith and trust. Fiduciaries are ethically required to act in the other party’s BEST INTERESTS rather than their own, and may not profit from recommending financial products at the expense of the client. There are three types of fiduciaries as defined by ERISA: 3(16), 3(21) and 3(38).

An ERISA Section 3(16) fiduciary serves as the plan administrator, whose duties are set by ERISA and the terms of the plan document. The 3(16) administrator is responsible for managing the daily operation of the plan including:

• Interpreting the plan documents
• Making all appropriate reporting, disclosures and vendor selections
• Evaluating and monitoring other plan fiduciaries and service providers
• Evaluating and monitoring plan investments
• Much more

As a 3(16) fiduciary, Alpha & Omega can help you design and create a new retirement plan, amend your current one, or replace it with one more suited to your company’s retirement goals. We can also help guide terminated participants in developing an individual retirement plan.

A 3(21) advisor provides counsel, guidance and fee-based investment services, but does not have the discretion to buy and sell plan assets or hire and fire plan administrators. The responsibility for investment decisions rests with the plan sponsor. The duties of a 3(21) advisor include:

• Recommending investments to the plan sponsor
• Monitoring those investments and recommending replacements when appropriate
• Providing participant education, including one-to-one advice when requested
• Advising the plan sponsor in following a fiduciary process, including the investment policy statement

An ERISA or 3(38) investment advisor is appointed by the plan sponsor to manage the investment process for the retirement plan. Unlike 3(21) advisors, 3(38) advisors do have discretion. They can hire and fire other investment advisors, plan accountants and custodians, and are solely responsible for selecting, monitoring and replacing plan investments. This type of fiduciary has a duty to prudently manage your investment assets.

Our partnerships with leading investment management firms provide access to thousands of mutual funds, including some that are typically offered to the Fortune 500 and Fortune 2000 plan client.

Yes! We offer a turnkey solution that includes everything from participant searches to Automatic Rollover IRAs to ensuring uncashed funds are compliance with DOL Safe Harbor regulations. We save you time and money while helping avoid DOL penalties, including the potential disqualification of your plan.

A funding policy determines how much employers and plan participants need to contribute each year to ensure sufficient funding of the plan. It is an IRS requirement in order to have an employer-sponsored pension plan. A&O can include drafting the policy as part of our plan design services.

The investment policy statement is a separate document, required by the DOL, that defines the criteria for your company’s retirement plan investments and their ongoing evaluation. It describes the plan’s investment philosophy and provides guidance on the type of investments that should be included in the plan. A&O can assist you in drafting this document as part of our plan design services.

No. As your plan fiduciary, we are required to act in your BEST INTERESTS at all times. This means we do not sell any product or accept commissions or finder’s fees as part of our basic TPA services. This enables us to provide impartial, objective advice regarding the investment funds we recommend for your plan, as well as investment managers to handle those funds.

RIA stands for “Registered Investment Advisor.” RIAs manage the assets of employer-sponsored retirement plans, sponsors, individuals and institutional investors, offering objective advice on investment strategies and products. RIAs have a fiduciary duty to provide appropriate investment advice based on the client’s BEST INTERESTS.

A fiduciary is a person or institution acting on behalf of another person or plan sponsor/company to manage their assets in good faith and trust. Fiduciaries are ethically required to act in the other party’s BEST INTERESTS rather than their own, and may not profit from recommending financial products at the expense of the client. When it comes to TPA services, there are three types of fiduciaries as defined by ERISA: 3(16) 3(21) and 3(38). The numbers refer to the ERISA section code.

An ERISA Section 3(16) fiduciary serves as the plan administrator, whose duties are set by ERISA and the terms of the plan document. A 3(16) administrator is responsible for managing the daily operation of the plan including:

• Interpreting the plan documents
• Making all appropriate reporting, disclosures and vendor selections
• Evaluating and monitoring other plan fiduciaries and service providers
• Evaluating and monitoring plan investments
• And much more

As a 3(16) fiduciary, Alpha & Omega can help you design and create a new retirement plan, amend your current one, or replace it with one more suited to your corporate retirement goals. We can also help guide terminated participants in developing an individual retirement plan.

A 3(21) investment advisor provides counsel, guidance and fee-based investment services but does not have the discretion to buy and sell plan assets or hire and fire plan administrators. The responsibility for investment decisions rests with the plan sponsor. The duties of a 3(21) advisor include:

• Recommending investments to the plan sponsor
• Monitoring those investments and recommending replacements when appropriate
• Providing participant education, including one-on-one advice when requested
• Advising the plan sponsor in following a fiduciary process, including the investment policy statement

An ERISA 3(38) investment advisor is appointed by the plan sponsor to manage the investment process for the retirement plan. Unlike 3(21) advisors, 3(38) advisors do have discretion. They can hire and fire other investment advisors, plan accountants and custodians, and are solely responsible for selecting, monitoring and replacing plan investments. This type of fiduciary must be a bank, insurance company, or a registered investment adviser (RIA), and has a fiduciary duty to prudently manage your investment assets.

When managing your funds, our primary goal is to see that every dollar you invest today is worth at least a dollar when you retire. Our investment strategies are designed to keep you ahead of inflation so when you retire your money has the same buying power as today. To achieve this goal, we employ a patient, disciplined approach to investing that includes creating an investment plan that fits your needs and risk tolerance, structuring an investment portfolio according to expected returns, and diversifying globally to minimize risk. Learn more about our philosophy.

All investing involves a certain amount of risk, and some investors are willing to accept a higher level of risk in the quest to achieve high returns or their financial goals. A risk profile determines how much risk (potentially higher returns versus the potential for big losses) you feel comfortable with in regards to saving for your retirement. RIAs use a person’s risk profile, along with their level of investment experience, to help with the investment process. In essence, the RIA acts as a guide, helping clients in the selection of appropriate investments when creating an investment profile.

Alpha & Omega is a fee-only wealth management firm and a third-party administrator providing financial planning, plan design and investment management services. Because we act as fiduciaries, we do not accept commissions or incentives for the financial products we recommend. As a client, you receive open and objective advice targeted to your unique situation. For a full schedule of A&O fees, please see our ADV.

The IRS doesn’t want retirement savings to go tax-free forever, so they require minimum distributions – annual withdrawals from the retirement account – when the account holder reaches age 72 under the SECURE ACT effective January 1, 2020. All types of retirement plans require RMDs. Visit the IRS website for more information on RMDs.

Yes. You can take a distribution from your retirement account at any time. With the passage of the SECURE ACT a person may withdraw funds for Childbirth and or Adopting Expenses. However, any distributions may be subject to taxes (at your current tax rate) and a penalty from the IRS if taken before age 59½ or retirement. Because each person’s tax situation is different, we recommend consulting a licensed tax professional when considering taking a distribution.

Yes. This type of transaction is considered a direct rollover rather than a distribution, and does not cause a tax liability.

Yes. You are allowed to make as many contributions as you want if you are still earning a wage. However, the annual tax deductibility may be limited. You may also transfer funds from another IRA or an employer-sponsored plan.

Our fees are automatically deducted from your investment portfolio on a quarterly basis. The deduction is made in arrears and is based on the asset value in your account at the end of the previous quarter. Some clients prefer to pay the fees directly to the Investment Advisor. 401(k) Plan sponsors that pay admin fees (Investment Advisor Fee) the following benefits are available:
 

• Reducing 401(k) fiduciary liability
• Lowering income taxes
• Increasing personal 401(k) returns
• Improving 401(k) attractiveness to employees