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Products November 22, 2011
ADP Introduces Tool for Paying 401(k) Plan Fees
ADP has launched the ADP ACCESS FlexAccount, a plan-level administration tool designed to give 401(k) plan sponsors greater flexibility in paying plan fees and expenses.
Reported by Rebecca Moore
ADP ACCESS FlexAccount lets plan sponsors choose how to pay plan fees and expenses. Service fees that are paid to ADP from the various plan investment options can be credited to the ADP ACCESS FlexAccount (providing the company’s plan meets certain underwriting requirements). Alternatively, a company may have a service fee charged to its plan’s participant accounts – known as a “fee-from-trust” transaction – and credited to the ADP ACCESS FlexAccount.
At the plan sponsor’s direction, funds in the ADP ACCESS FlexAccount may be used to pay administrative expenses such as recordkeeping or consulting and advisory fees.
In order to track payments made from the account, plan sponsors will receive an annual ADP ACCESS FlexAccount report. This will identify any surplus amounts that remain in the account and help plan sponsors effectively manage plan resources.
To learn more, visit http://www.adp.com/401k.
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