Not Every Plan Needs Daily Valuation. Consider Annual.
Daily valuation recordkeeping is the standard model for most 401(k) plans today, and for good reason. But it isn’t the right fit for every employer.
Some small plans are better served by an annual valuation approach. Under this model, participant accounts are valued once per year rather than daily. The result is a simpler administrative structure and, in many cases, lower plan costs.
When annual valuation may be a good fit:
Employer who wants an advisor to manage the investment accounts for their employees
Employees who may not benefit from the “bells and whistles” of a daily valuation platform
Employers who make contributions on an annual or infrequent basis
For annual plans, RPG provides:
Plan document drafting and compliance
Annual contribution and vesting calculations
Nondiscrimination and coverage testing
Form 5500 and government filings
Participant account statements on an annual basis
Distribution and loan processing as needed
Full compliance monitoring
Ongoing consulting
A cost-efficient way to achieve your goals
Annual valuation plans typically carry lower per-participant and administrative costs than daily valuation platforms. For the right plan, this structure is a legitimate way to offer employees a meaningful retirement benefit without the overhead of a full daily platform.
RPG has administered annual valuation plans for decades. We can help you and your clients evaluate whether this model is appropriate given the plan’s size, design, and goals.
Not sure if annual valuation is the right fit?
Contact us. We’ll walk you through the considerations.