Although we’re nice, friendly people, we follow a rigorous, highly disciplined process that ensures precise compliance and accuracy. Our clients don’t have to worry that some detail has been overlooked or misapplied. When it comes to process, we’re all business.
Initial Setup
Plan document drafted and signed.
Enrollment materials—summary plan description, deferral election forms and beneficiary designation forms—distributed to participants.
Copies of deferral election forms and beneficiary forms returned to Northeast Benefit Services, Inc.—originals kept in personnel file.
Client notifies Payroll provider of participant deferral elections and catch-up elections.
Investment accounts for participants opened.
Census data and other requested information completed and sent to Northeast Benefit Services, Inc.
Northeast Benefit Services, Inc. establishes its files and computer programs.
Ongoing
In accordance with the Department of Labor (DOL) regulations, participant deferrals are deposited into the plan as soon as they can be reasonably segregated from the employees’ assets, but no later than the 7th day following deferrals.
Employer may, but is not required to, make periodic matching contributions.
Participants work with an investment advisor to determine how they wish to have their account invested. Investment changes are taken care of directly by the investment advisor and the Employer and Northeast Benefit Services, Inc. receive periodic investment statements from investment firm.
As questions or concerns arise, client contacts Northeast Benefit Services, Inc. Solutions are discussed and implemented.
The employee accepts rollovers to this plan after completion of the rollover certification.
Quarterly
Participants may change the amount of their deferral (including participants who chose not to defer) on January 1, April 1, July 1, and October 1. Payroll should be notified of any changes.
Semi-Annually/Quarterly
Northeast Benefit Services, Inc. sends out “eligible entry” letter indicating which employees may be newly eligible to enter the plan. Employees are given enrollment materials. Investment accounts are opened for any newly eligible participants who elect to defer. Payroll is notified.
Annually
Northeast Benefit Services, Inc. sends annual information request which employer completes and returns.
Northeast Benefit Services, Inc. prepares employer contribution calculations.
Employers deposit required contributions and any discretionary contributions by the time they file their tax return, including extensions.
Amounts forfeited by participants who received distributions are reallocated.
Northeast Benefit Services, Inc. reconciles deposits to deferrals and balances plan assets. Any discrepancies are addressed.
Northeast Benefit Services, Inc. prepares annual testing and record keeping reports. Form 5500 is completed for filing with the appropriate government agency.
Based on the investment product, individual benefit statements are prepared on an annual basis and distribution materials are prepared and sent to participants who have terminated during the year.
Distributions are processed as they are returned. Copies of all materials are sent to Northeast Benefit Services, Inc. for their files.
Forms 1099R, 1096, and 945 are prepared in January and filed with the IRS.
Note: Some of the above items relate only to 401(k) plans.
