Foresight Wealth Management

A Multiple Employer Plan or MEP is a 401k plan allowing multiple businesses to participate in a single retirement plan. Under the Internal Revenue Code section 413(c) unaffiliated companies are allowed to group together under one 401k plan. This arrangement allows for a small employer to take advantage of economies of scale by combining with many other small employers to access pricing and features typically found in larger 401k plans. 

Multiple Employer Plans are nothing new, they have been around for years. Closed MEPs have traditionally required employers to have commonality, but recent changes in regulations have allowed for Open MEPs. Open MEPs allow businesses with nothing in common to benefit from joining a MEP.

Any employer wanting to reduce expenses and fiduciary liability can join the MEP. Companies just starting a plan or companies with millions of dollars can benefit from joining a MEP.

Yes, each adopting employer may customize plan design to accomodate the individual goals of each employer. Employers may choose eligibility, vesting, matching options, including Safe Harbor variations. Profit sharing components using pro-rata allocations, social security integrated formulas and cross-tested formulas may be added.

Yes, many national and local payroll providers are available. Please contact us to find out if your payroll provider is available.

The Employee Retirement Security Act (ERISA) defines 3 different fiduciary roles in any 401k plan, the 3(21) Named Fiduciary, 3(16) Administrator, and 3(38) Investment Manager. The plan fiduciary accepts all the liability for the administration, investments and expenses in the 401k plan. Through a breach of fiduciary duty a plan fiduciary can be personally liable for unreasonable plan expenses or poor investments. 

Not you, which is one of the biggest benefits of a MEP. Foresight Wealth Management assumes the role of the 3(21) Named Fiduciary, 3(16) Administrator, and 3(38) Investment Manager.

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