Medical Practice 

Based in Sacramento with staff and clients throughout California

Goal: 

Looking for ways to improve almost every aspect of the retirement plan. Needed a more attractive recruiting tool and wanted to increase tax savings for the owners.

Situation before our help: 

• 401k plan with ADP
• Received no service and no support
• Poor quality investment lineup with underperforming funds
• No education/advice employer felt like they were in a position where they were being asked investment advice
• No employee eligibility limits, automatically eligible

• As a result turnover and small participant accounts were an issue

Updates implemented:

• Benchmarked out recordkeepers and identified better fit

• Supported Physician’s desire for a brokerage window and additional investment choices

• Redesigned the investment lineup
• Implemented 3(38) index lineup to reduce costs, increase performance and automate swapping out underperforming investment funds
• Redesigned the retirement plan documents
• 6 month eligibility with 500 hours requirement (aligns with when the employer knows if the employee is going to be a good organizational fit or not)

• 6% automatic enrollment
• Automatic escalation of 1% per year to a cap of 12%
• Elected 3% safe harbor contribution given the higher percentage of participation within the plan

• Added loan provisions to help lower compensated staff members for financial emergencies
• Provided employee education and participant rollout sessions + 1:1 financial counseling
• After 6 years, providing a participant automatically enrolled – 6% auto enroll, automatic escalation of 1%/yr to cap of 12% + 3% safe harbor contribution = 15% contribution rate