Contact

THE ENGINE BEHIND
YOUR FIRM’S
POWERHOUSE PLAN

Harmon Street is here to give a wide range of companies the
highest level of service, from the plan out.

THE GOAL: CONFIDENCE FROM A PROCESS
THAT WORKS FOR YOU AND YOUR EMPLOYEES

OUR PROCESS

1. Review

  • Review Fiduciary Compliance Needs
  • Identify Investment Performance Needs
  • Plan Design
  • Plan Goals
  • Identify Operations Support Needs
  • Enumerate Vendor Services & Fees

2. Recommend

  • Outline Administrative Procedures
  • Fiduciary Compliance Plan
  • Highlight possible Investment Alternatives
  • Discuss Participant Education Practices
  • Highlight Possible Changes to Plan Design
  • Discuss Potential Vendor Changes

3. Implement

  • Make amendments
  • Establish Investment Committee
  • Optimize Participant Communications
  • Implement Participant Education & Advice
  • Take Lead on Vendor Negotiations

4. Evaluate

  • Discuss Cost Savings
  • Track Fiduciary Compliance
  • Track and Adjust Participation Goals
  • Track Participant and Firm Satisfaction

No plan is set in stone.
On an ongoing basis, the cycle
starts back at the Review phase!

START THE PROCESS

REDUCE BURDEN. INCREASE PARTICIPATION

Harmon Street helps you arrive at plans that
can save employers & participants time,
money — or both

WHAT WE OFFER

Get a level of service typically reserved for large clients:
  • Experience — 20+ years serving 401(k) & 403(b) plan sponsors
  • Tailored know-how — From startups to plans with hundreds of employees
  • Independence—we can work with just about any 401(k) or 403(b) provider
  • Deep experience in helping plans with discrimination testing issues
  • Fairness — a fee structure based upon the actual hours spent servicing your plan and your participants

PLAN GOALS

Every client is different, but
firms usually work with us to
bachieve some, or all, of the
following goals:

    LOWER PLAN FEES

  • Fee benchmarking
  • Request for Proposal (RFP) process
  • Vendor negotiations

    REDUCE ADMINISTRATIVE BURDEN

  • Day-to-day operational support
  • Draft communications — take advantage of our vast library of pre-written memos and employee communication
  • Vendor management
  • Plan benchmarking
  • Investment due diligence and monitoring

    OPTIMIZE EMPLOYER CONTRIBUTIONS

  • Employer match design and review
  • Profit Sharing and Cash Balance plans
  • Tax reduction

    INCREASE PARTICIPATION

  • Education & financial wellness campaigns
  • One-on-one enrollment meetings
  • Participant tools and resources

    MAINTAIN DEPARTMENT OF LABOR (DOL) COMPLIANCE

  • Audit assistance
  • Disclosure and documentation process
  • Fiduciary compliance

    MAINTAIN INTERNAL REVENUE SERVICE (IRS) COMPLIANCE

  • Audit assistance
  • Disclosure and documentation process
  • Fiduciary compliance

IS 403(B) AN OPTION?

403(b)s are not for every organization—in fact, only public educational institutions or 501(c)(3) tax-exempt organizations are allowed to establish a 403(b) plan. If it’s an option, there are some clear reasons why offering a plan may be a good idea.

  • VALUES:

    For charitable entities, 403(b)s offers the ability for participants to more intentionally select investment options that are in line with their values and the values of the company.

  • ELIGIBILITY:

    While 403(b)s are not subject to ADP discrimination testing (ACP testing and other discrimination testing still applies), the tradeoff for many is “universal eligibility.” A 403(b) plan is not allowed to exclude employees or impose service requirements for employee deferrals in the same manner as a 401(k). Do note that a 403(b) may impose eligibility criteria for employer contributions similar to a 401(k).

  • FEES & FLEXIBILITY:

    403(b) plans may allow participants to make even greater contributions than those allowed under a 401(k) plan due to a special catch-up contribution rule for employees with at least 15 years of service. Additionally, optional loans or hardship distributions can add flexibility for employees

BENEFITS ARE MORE COMPLETE AT HARMON STREET

EXECUTIVE COMPENSATION

The key to a successful Executive Deferral Plan is balancing the employer’s needs with those of the executives. Navigating the “trade-offs” of various Executive Deferral Plans requires a firm with an understanding of the effects on a company’s financial statements as well as the behavior and demographics of the executives. Our process is designed to help your organization understand the costs, tax and legal framework, and the tradeoffs for the range of plan designs and funding options.

TAX REDUCTION

The Tax Cuts & Jobs Act of 2017 provided some significant relief for many successful business owners. In addition to cutting tax rates and increasing deductions for many businesses, the Act also provided some new planning opportunities for certain qualified plan designs to further reduce the tax burden. It is important to know the options that are available. Depending upon your contribution goal, this could mean simply tweaking an existing 401(k) plan to skew more company contributions to the owner(s), or you may benefit from more powerful strategies that may provide 100% deductible, 6-figure deferral opportunities for the owner(s). We work with your tax professionals to design a strategy that fits your needs, corporate structure, and contribution goal.

  • Owner-only 401(k)
  • Cross-tested profit sharing
  • Cash balance & Defined Benefit plans
  • Non-qualified deferred compensation plan
ESOP

Not just for large publicly traded companies! The Employee Stock Ownership Plans of today can be an effective tool for owners of small to medium-sized businesses to gain liquidity and construct a succession plan without losing control of the company. Leverage may be used to magnify benefits, reduce out-of-pocket costs and provide immediate liquidity in some circumstances.

The Benefits of ESOP Strategies:
  • Liquidity
  • A way to capitalize a successful business at retirement
  • Tax-reduction
  • Stability for clients and employees
  • A great retention tool for vital employees
GROUP BENEFITS

Talk with Harmon Street to discuss additional potential support and benefits planning services, with a network of complementary professionals that represent the same standards and experience our clients have come to expect from us.

  • Group Health
  • Group Life & Disability
  • Cafeteria Plans
  • Employment Law
  • Accounting & Payroll
  • Corporate Finance, Treasury & Banking