Download 401K-NJSBCA vs NJ Secure Choice PDF
Download Full 401K-How it Works – NJSBCA PDF
Transamerica NJSBCA Program
Control: New Jersey School Bus Contractors Association
Types of Employers: Employers of the NJSBCA
Type of Plan: 401(k)
Employee Contribution Limits: $19,500
Catch Up Contribution: $6,500
Auto Enrollment: Optional
Employer Contributions Allowed: Yes
Loans Allowed: Yes, optional
Hardship Withdrawals Allowed: Yes, optional
Eligibility Requirements: Set by plan; may exclude part time employees
Administrative Duties:
TAG Resources 3(16) Plan Administrator, Included:
- Form 5500 Filing
- Non-Discrimination Testing
- Investment of plan contributions
- Tracking contribution limits
- Tracking catch-up contributions
- Required communications
- Approvals and denials of hardship requests
- Distribution processing
- Monitoring of pending legislative actions
- Merger and acquisition support
Plan Design: Determined by NJSBCA
Investments: Multiple 3(38) investment managers; participant direction
NJ Secure Choice Savings Program
Control:NJ Secure Choice Savings Board
Types of Employers:All New Jersey employers with 25 or more employees in the past calendar year, been in business at least 2 years, and currently do not offer a plan. Voluntary for employers with fewer than 25. Applies to all profit and nonprofit entities; excludes governmental entities.
Type of Plan:IRA
Employee Contribution Limits:$6,000
Catch Up Contribution:$1,000
Auto Enrollment:Required 3%; ability to opt out
Employer Contributions Allowed:No
Loans Allowed:No
Hardship Withdrawals Allowed:No
Eligibility Requirements: All W2 employees; including part time.
Administrative Duties:
Employer:
- Submit employee census to New Jersey Secure Choice program annually
- Track eligibility
- Provide enrollment packets to all employees 30 days after date of hire
- Track employee opt-in or opt-out
- Auto enroll at 3%; repeat annually
- Open enrollment every 2 years
- Track and auto-enroll employees not participating for at least 1 year
Penalties apply for non-compliance; no Form 5500 or non-discrimination testing required
Plan Design:Determined by State of New Jersey
Investments:Selected and run by New Jersey State Treasurer; directed by the board
Njsbca 401(K) Retirement Plan Exchange
How It Works
Easy To Administer
- TAG Resources employees are ERISA trained
- TAG Resources employs and retains top ERISA attorneys
- Exclusive Bedrock software platform developed by TAG Resources
Client Benefits
- Takes pressure off your administrative resources
- Allows you to use those resources elsewhere
- Provides access to service providers with ERISA and investment expenses
- A retirement department similar to large companies
Fiduciary Protection
- Effective ERISA-compliant administration
- TAG Resources is 3(16) Administrative Fiduciary
- TAG Resources is 402(a) Named Fiduciary
- TAG Resources hires the 3(38) Investment Fiduciary
- All backed by fiduciary insurance
Client Benefits
- Reduces liability
- Eliminates investment selection responsibility
- Reduces fear of lawsuits
- High level of protection
Compliant
- Effective ERISA-compliant administration
- Knowledge of DOL
- Centralized data at TAG Resources
- Bedrock technology
Client Benefits
- TAG Resources assumes responsibility for plan compliance with DOL and IRS regulations
- Limit exposure to fines and penalties
- Inquiries and audits handled directly by TAG Resources
Cost Effective
- Pooled concept
- Hundreds of businesses aggregated together
- Negotiate plan cost based on larger, cumulative asset pool
- Institutionally-priced investments typically only available to the largest institutions
Client Benefits
- Lower direct plan cost
- More services for the cost
- Your plan has large plan features
- Repurpose resources
- Lower cost can lead to better participant outcomes