EZ IRA PLAN

PAYROLL DEDUCTION IRA

The simplest retirement arrangement that a business can have.

Employer Benefits

  • No employer contributions
  • No plan costs or set up fee
  • No Department of Labor oversight or testing required
  • No 5500 form filing requirements or fiduciary liability
  • No participation requirements
  • Available to any size business

Employee Benefits

  • Convenient and easy to set up
  • Simple and flexible contributions
  • Multiple investment options
    • Open architecture
    • Multi- fund family
    • Private money management
  • Employee is the trustee
  • Prior rollover plans are accepted

How does a Payroll Deduction IRA work?

The employer sets up the payroll deduction IRA program.

The employee establishes either a Traditional or Roth IRA (based on eligiblity and personal choice), authorizes the payroll deduction, completes the agreement, and provide this to the employer.

The employer withholds the payroll deduction amounts that have been authorized and promptly transmits the funds.

The employee is responsible to invest the funds contributed.

The employer can:

Encourage employees to save for retirement by providing general information and educational materials that explain why saving is important.

Answer employees’ questions about the payroll deduction program and refer inquiries to Benefit Providers.

Provide information materials to the employee-employer may not suggest any endorsement of Benefit Providers.

Limit the number of IRA providers to which it will remit contributions.

The employer must:

  • Remain neutral about the IRA provider
  • Not negotiate special terms for its employees
  • Not exercise influence over the investments made
  • Not receive any compensation in connection with the Payroll Deduction IRA
  • Make clear that its involvement in the program is limited to collecting employee contributions and prompt submission to the service provider

The employee:

  • Completes the IRA application and submits it
  • Determines the amount they want deducted for contribution to their IRA
  • Completes the agreement and provides this to the employer
  • Works with a representative of Benefit Providers, their own advisor or self-directs their investment options
  • Must pay all fees related to setting up and maintaining the Payroll Deduction IRA

Account fees:

  • Annual Maintenance Fee: $60
  • Annual Custody and Administration Fee: 0.15% of Account Value
  • Fees are assessed on a monthly or quarterly billing cycle and will be assessed, pro rata, from the assets in the Account.

Click here for more information on how you can help your employees save for the future!