PLAN4TEN

The ShareBuilder PLAN4TEN is designed to make it easy for owners with 2–10 employees to save the maximum allowable amount and avoid IRS compliance paperwork. It’s affordably priced and takes just minutes a month to manage.

Save with less hassle

Get started quickly with fast online plan set-up — typically less than than 20 minutes — and just minutes a month to manage your plan post-installation.
Maximize your savings by making the highest allowable contribution to your account.
Match employee contributions so you can avoid IRS discrimination testing and encourage your employees to participate. (see question 5 on reverse)
If you want to help your employees get started, consider the auto-enrollment option that requires employees to opt out of the plan — a 401k best practice.

Tax advantages lower your costs

If this is your company’s first 401k plan, your business is eligible for an annual $500 tax credit for the first three years.
Employee matching or profit-sharing contributions are tax deductible for your business.
Choose the best way to protect your personal 401k contributions from taxes: tax-deferred and/or after-tax with the Roth 401k option.

Details to know

Designed specifically for companies of two to ten employees
Automatically satisfies government non-discrimination requirement
Allows for higher deferral limits than SEP or Simple IRAs
Web-based contribution processing and ACH payment of deposits
Full-service, online access to administer and monitor your plan
Diverse index-based investment options comprised of Exchange Traded Funds
Access to an online Investment Center and statements
Access to tax-free loans
Allows for account consolidation and rollovers

Q & A

Q: Is this the right plan for my organization?

A: The PLAN4TEN is designed specifically for businesses which:

Employ two to ten persons, including full-time, part-time, and seasonal
Are willing to fund employer Safe Harbor contributions on a per-pay-period basis

Q: What are some of the benefits of PLAN4TEN?

A: The PLAN4TEN program allows for:

Employee elective and catch-up contributions
Up to two outstanding loans per participant
Either an employer Safe Harbor matching contribution or a non-elective contribution

Q: What type of enrollment materials are needed?

A: Enrollment is handled online and is paper-free. A training video and guides make it easy for employees to get started.

Q: What is a Safe Harbor 401k plan?

A: Safe Harbor 401k plans follow the IRS nondiscrimination rules for elective deferrals and employer contributions. With a Safe Harbor plan, employers must satisfy certain contribution, vesting, and notice requirements.

Q: What are the mandatory employer contribution requirements?

A: PLAN4TEN has been designed to satisfy nondiscrimination requirements. Employers can choose between two Safe Harbor contribution options:

An employer matching contribution of 100% of employee elective contributions on the first 4%, 5%, or 6% of compensation
An employer non-elective contribution of 3% of compensation for all eligible employees

These accounts are 100% vested and must be funded on a per-pay-period basis.

Q: When does the PLAN4TEN need to be established?

A: Generally, you need to set up your plan at least 3 months before the end of the plan year. (Plan installation date requirements are contingent upon the plan type being adopted and whether it is an existing or startup plan. Specific deadlines are set for each year.)

Q: Does the PLAN4TEN allow for a profit-sharing contribution?

A: Yes, PLAN4TEN allows the employer to make discretionary profit-sharing contributions on either a per-pay-period basis or annually at the end of the year. The profit-sharing contribution is subject to a vesting schedule.

Q: What if my business grows beyond 10 total employees?

A: If your business grows beyond 10 employees, your plan will automatically move to a PLAN4MOST at the next billing cycle.