401kDIRECT and Summit Trust Develop MEP

401kDIRECT and Summit Trust Company are introducing the DIRECT Multiple Employer Plan (MEP), for plan sponsors who want the benefits of a MEP while maintaining control over plan design and investments.  

The DIRECT MEP is a qualified 401(k) plan that allows unaffiliated employers to reduce costs and fiduciary liability by participating together in a single plan, according to 401kDIRECT.

By offering clients the option of participating in a MEP, third-party administrators (TPAs) and investment advisers can help them minimize the liability of running a plan and reduce administrative costs by delegating the Plan Sponsor and Trustee Responsibilities to Summit Trust Company. Under the MEP, individual employers do not file Form 5500 or perform annual audits; these functions are taken care of at the plan level.

401kDIRECT provides daily valuation recordkeeping for the DIRECT MEP while administration and compliance is handled by local TPAs. 401kDIRECT says its MEP is different from other MEPs because it gives local TPAs the opportunity to provide their expertise in plan design and compliance to each adopting employer.

Registered investment advisers (RIAs) are able to offer the plan to their clients acting as a 3(38) or 3(21) investment manager as defined under ERISA. They have access to hundreds of mutual funds and ETFs to customize the plan investment menu to meet the needs of their clients.

For more information on the program visit www.401k-direct.com, or call 800-571-5104, ext. 2.