Products October 29, 2006

401kDirect Unveils Plan Services Suite

401kDIRECT Network has released a "TOTAL Solutions Package" that will be marketed through a plan's broker, RIA, TPA, CPA or benefit consultant.
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401kDIRECT Network has released a “TOTAL Solutions Package’ that will be marketed through a plan’s broker, RIA, TPA, CPA or benefit consultant.

A news release from the Agoura Hills, California-company said the new suite includes:

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•PlanTool’s Risk Management System that provides a plan-specific investment policy statement, mutual fund and investment selection, monitoring and replacement process.
•Retirement Analyst Participant Advice and Fiduciary Reporting Program that outlines and documents the investment process for participants and creates special plan-level and participant-level reports to assist plan sponsors with their fiduciary duties.
•ICC Super Statements
•Exchange traded funds (ETFs) that are sub-advised by portfolio strategist Barclays Global Investors (BGI), State Street Global and other ETF managers.

The Retirement Analyst Participant Advice and Fiduciary Reporting Pooling ETF assets using Collective Investment Funds (CIFs) allows asset allocation solutions to be offered to multiple plans at a lower cost. The actively managed allocation models are customized according to a specific investment objective.

Products October 29, 2006

Paychex Adds Roth 401(k)

Paychex Inc., which provides payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses, has added a Roth 401(k) feature to its retirement services offering.
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Paychex Inc., which provides payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses, has added a Roth 401(k) feature to its retirement services offering.

Employers could begin offering the Roth 401(k), a defined contribution plan allowing participants to make after-tax contributions toward their retirement saving, in January 2006. Workers can contribute a maximum of $15,000 during 2006 in any combination of pre-tax 401(k) or after-tax Roth 401(k) deferrals, with those over 50 permitted to make an additional $5,000 catch-up contribution.

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The Roth plan type, originally permitted by the Economic Growth and Tax Reconciliation Act of 2001. The legislative “sunset’ for that provision, was removed by the recently signed Pension Protection Act of 2006.

“The Roth 401(k) may be the right savings vehicle for newly hired and younger workers who are in a lower tax bracket now, but expect their income and tax burden to grow as their career progresses,” said Tony Tortorella, vice president of sales, Paychex Human Resource Services, in a press release. “The Roth may also be a good fit for highly paid workers who want to manage their tax burden in retirement.”

For more information, go to http://www.paychex.com.

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