Avoid potential penalties or evenlosing the plan's tax-exempt status.
By having your plan recordkeeper also handle compliance and 5500 filing, organizations ensure that both critical requirements are taken care of by individuals already familiar with your organization and plan, thus reducing the staff time and resources required from your company to comply with the mandatory testing.
Any organization with an ERISA qualified retirement plan — 401(k), profit sharing, ESOP, or 403(b)
Meet IRS and ERISA regulatory requirements and help avoid potential penalties or even loss of the plan's tax-exempt status
Compliance testing is automatically included as part of retirement plan recordkeeping through AGH
Provide an annual opportunity to identify and find solutions to rectify any issues before they become more expensive to fix
Fulfill the organization's fiduciary responsibilities and help mitigate potential liability
Organizations that offer retirement plans are required to undergo several types of compliance testing at least once a year. These tests ensure that the retirement plan doesn't provide a disproportionate benefit to certain types of high-level executives and owners, called Highly Compensated Employees or HCEs, and that the plan covers the number of employees of the company required by IRS code. The battery of tests includes two types called non-discrimination testing and top-heavy testing. Discrimination testing measures the level of contributions HCEs and non-HCEs are making to their retirement plans. Top-heavy testing evaluates whether "key employees" assets in the plan exceed a percentage of total assets in the plan.
If the organization fails any of the testing, our employee benefit plan advisors can work with you to develop a plan to get back into and maintain compliance in the way that best meets the organization's needs.
Senior Vice President
Employee Benefit Services
Brad Bechtel leads AGH’s employee benefit services (EBS) division, which serves clients nationwide. EBS is one of the region's largest providers of retirement plan recordkeeping services for daily valuation plans. The division provides consulting services to clients on employee benefit plans, including plan design, implementation, operation, fiduciary due diligence, compliance, and through affiliate AGH Wealth Management, discretionary and non-discretionary investment fiduciary services, investment advisory services and employee education.
Bechtel is experienced in executive compensation, including non-qualified, phantom stock, top hat and excess benefit plans, as well as other deferred compensation approaches. He has consulted for numerous Fortune 500 corporations on investment management and fiduciary due diligence. He also provides search and selection due diligence consulting services for companies seeking new investment and recordkeeping providers for their qualified plans. Bechtel is a registered investment advisor who holds Series 7, 24 and 66 FINRA registrations, and he is a member of the American Society of Pension Professionals & Actuaries.