Help
Please direct your questions to costcosales@sharebuilder401k.com, or call us toll free at 1.866.817.1719 option 1.
FAQ: frequently asked questions about ShareBuilder 401ks.
Who is ShareBuilder?-
ShareBuilder is a leader in offering online investing services that makes it easy and affordable for any investor to get started. Our vision is to help lead Americans back to saving. ShareBuilder also offers pioneering 401k plans designed exclusively for small businesses. ShareBuilder is a subsidiary of ING DIRECT, which — with over 5.5 million customers — is the nation’s largest direct bank.
- What if I’m not a Costco member?
-
It’s easy to get a Costco membership so you can take advantage of the Costco exclusive member pricing on a ShareBuilder 401k. Simply go to www.costco.com and click on membership.
Costco members save $60–$235 on setup of a new or rollover 401k plan. See our complete pricing guide and compare.
- What are the tax advantages of a 401k plan?
-
Employers or Plan Sponsors receive business tax deductions for the operating expenses of your 401k plan, and the Sponsor contributions you make can be deducted from your taxes every year. In addition a $500 tax credit is available for each of the first three consecutive years of the plan (PLAN4ONE excluded).
Your employees can significantly reduce the amount of taxes they pay by investing pre-tax dollars into their plan. They also pay no taxes on the growth of their investments until they retire.
- I am self-employed; does ShareBuilder offer a plan for me?
Yes, the ShareBuilder PLAN4ONE provides owner-only businesses with the opportunity to shelter a significantly higher portion of the profits for retirement than allowed through conventional retirement plans.
- What is a Safe Harbor 401k and why should I have one?
-
A Safe Harbor 401k plan is exempt from many of the complex tax rules that are associated with a traditional 401k plan, including annual nondiscrimination testing. Safe Harbor also allows you to maximize your personal contributions, even if employee contributions are low.
Employers can choose between one of two Safe Harbor options:
- a matching contribution of 100% of employee elective contributions on the first 4%, 5% or 6% of compensation, or
- a contribution of 3% of compensation for all eligible employees, regardless if they are participating in the plan themselves.
- How much can I contribute to a 401k plan?
For 2009 you may contribute up to $16,500 ($22,000 if over 50) as an employee of your business, and profit-share an additional $32,500 from the employer (limited to 25% of W-2 compensation). In other words, the combined employer and employee annual contribution limit is $49,000. Persons over 50 may contribute up to $54,500.
- How secure is my company’s information on the ShareBuilder 401k web site?
Protecting your privacy and personal information is a top priority for us at ShareBuilder. We use a variety of modern technologies and techniques that provide multiple layers of protection against network or physical intrusion and compromise. Additionally, we evaluate and monitor our partners to ensure that their security policies meet our standards.
- What investments are available in the ShareBuilder 401k?
All ShareBuilder 401k plans offer fifteen diverse exchange-traded funds (ETFs) as well as five model portfolios designed to suit different investing styles.
- Who is PAi?
PAi administers our ShareBuilder 401k Plan. PAi has over 20 years of 401k leadership and expertise, and currently administers over 8,500 plans for more than 500,000 participants.
- What deadlines are associated with my 401k plan?
-
Establish a 401k: The deadline to start a 401k is December 31st of the year in which you would like to receive the tax deduction or fiscal year end for corporations.
Employee contributions: The deadline to make salary deferral for unincorporated businesses is the tax filing date of April 15 of the next year plus extensions. For incorporated businesses the deadline is 15 days after the close of the fiscal year. For instance if December 31 ends the fiscal year, make contributions by January 15 of the next year.
Profit-sharing contribution: For unincorporated businesses the deadline is the tax filing date of April 15 (or October 15 if an extension was filed). For incorporated businesses the deadline is corporate tax filing deadline March 15, plus extensions.
- What vesting options are available for my plan?
Employee contributions are always 100% vested. In the case of profit sharing and new Safe Harbor employer matching accounts, your business may choose five different vesting schedules.
- What support is available for rolling out the plan to my employees?
Once you’ve purchased your plan, rollout instructions and materials are available for download on your Employer site.