Meeting Your Needs
Hessel & Associates is a full service Third Party Administrator (TPA). Our role is that of educator, catalyst and facilitator, with the client as the ultimate decision maker. In the retirement plan arena one plan does not fit all. After careful evaluation and consulting with the principals of a company and their tax and legal professionals, a decision is made regarding the type of plan or plans that best fulfill the client’s objectives.
Hessel & Associates gathers the data needed to prepare a qualified plan proposal that includes options to maximize the client’s tax position while accomplishing retirement needs. After the client and their professionals decide which option is best, Hessel & Associates drafts and monitors the plan for compliance issues as changes in the tax code and client’s objectives warrant. Our administrative staff and enrolled actuary are also responsible for the ongoing administration of the plan, including preparation of annual reports, annual filings of required government forms, annual nondiscrimination testing, assistance with distribution and loan requests, participant benefit statements and communication with all appropriate parties.
Hessel & Associates is committed to a standard of excellence and the highest quality of service, which is the foundation of our impeccable reputation in the retirement plan community.
Why Adopt a Qualified Plan?
To retain valued employees and attract the type of talent needed to achieve success in today’s business environment
To provide needed retirement benefits for employees in today’s changing economic climate
To provide rewards for superior performance
To provide companies with the best tax advantage possible under current tax law
If you are a business owner, chief financial officer, legal, financial or investment advisor for companies, the professionals at Hessel & Associates can prepare a benefit program specifically tailored to you or your client’s retirement needs.
Types of Plans
A defined contribution plan is a retirement plan that provides an individual account for each participant. Benefits are based solely on amounts contributed to a participant’s account, as well as investment gains and expenses. In a defined contribution plan, the contributions are determined by formula and not by actuarial requirements. Plan earnings and losses are allocated to each participant’s account and do not affect the company’s retirement plan costs.
Defined contribution plans include the following:
- Profit Sharing Plans
- 401(k) Plans (traditional and Safe Harbor)
A defined benefit plan is a retirement plan that is not an individual account plan, but rather the participant is promised a monthly benefit at retirement. A typical benefit formula would entitle a participant to a monthly pension for life equal to 30 percent of monthly compensation. The annual contribution is actuarially determined. Any forfeitures reduce the company’s cost of providing benefits, and certain benefits may be insured by the Pension Benefit Guaranty Corporation.
Defined benefit plans include the following:
- Defined Benefit Plans
- Cash Balance Plans
As part of our plan document services, Hessel & Associates prepares plan illustrations and determines the most efficient plan design to meet the client’s goals with respect to retirement savings. Once we have developed a plan design that meets those goals, we create and maintain the plan document, periodically updating it as new pension laws are enacted.
As part of our plan document service, we also prepare the:
- Notification to Interested Parties
- Summary Plan Description for participants
- Mandatory Amendments
- Discretionary Amendments
- Restatements of the plan document during each IRS Restatement Cycle
Hessel & Associates offers administrative services for the following plan designs:
- Traditional 401(k)
- Safe Harbor 401(k)
- Profit Sharing
- Cross-Tested Profit Sharing
- Integrated Profit Sharing
- Defined Benefit
- Cash Balance
Each year, Hessel & Associates requests information regarding the plan and the employees. Once that information is received, we review the employee data for eligibility, calculate the contribution allocations, determine vesting and perform year-end testing.
Depending on the client’s objectives, we can propose various options for the allocation of the company contributions.
Hessel & Associates performs all required nondiscrimination tests on an annual basis depending on the needs of the plan. This service includes the annual monitoring of the 402(g) or elective deferral limit as well as the overall 415 limit. The annual nondiscrimination tests include ADP and/or ACP testing, top heavy testing and coverage testing. Hessel & Associates also calculates corrective distributions, as needed.
Participant Loans and Distributions
In addition to the services listed above, Hessel & Associates offers loan administration that includes calculating the maximum loan amount available to a participant, refinancing and/or reamortizing existing loans and monitoring loan repayments on an annual basis.
We also calculate amounts available for hardship and in-service distributions, and determine the annual required minimum distribution for participants over the age of 70½.
Annual Form 5500 Filing
Hessel & Associates prepares and files the Form 5500, Form 5500-EZ or Form 5500-SF and all required attachments. We provide an annual allocation report and annual participant benefit statements, the Summary Annual Report for participants and beneficiaries and monitor the plan for continued adherence to IRS Code qualification requirements.
The Form 5500 and Form 5500-SF are filed electronically with the Department of Labor using an approved third party software system. Our team of dedicated third party administrators will be happy to assist clients with the electronic signature and filing process.