Employee Benefits and Retirement Services
Determine The Right Plan for Your Business
Arvest Wealth Management has a Retirement Plan Consulting group that can help you evaluate your options and review your current group retirement plan. The goal is to help you to understand all the costs associated with a plan, including administration, recordkeeping and investment options. Our years of experience and dedication to the employer-sponsored retirement plan area provide a level of service and accountability that is rare in our industry.
A number of plan options are available to your business:
- SEP-IRA – These plans are ideal for small organizations or self-employed individuals. They are easy to establish and have no special governmental filing requirements. Only the employer makes contributions and the limit is up to 25% of compensation, up to $53,000 (2016).
- Simple-IRA – These plans are for companies with up to 100 employees and allow for employees to defer wages into the plan and for the employer to also make contributions. Employers cannot place a limit on employee contributions, except to comply with the annual limit of $12,500 (2016). Employees age 50 or over can make catch-up contributions up to $15,500 (2016). The employer can elect a matching feature or a simple percentage of wages contribution. There is some administration needed.
- 401(k) Plans – These plans have become popular because of their flexibility and the higher limits for employee and employer contributions. There can be significant administration needed and annual filings are required. Employees can defer up to 100% of their wages with a limit of $18,000 (2016). Employees age 50 or over may also make catch-up contributions of up to $24,000 (2016).
Arvest offers a variety of services to our Retirement Plan Consulting clients:
- Local Support and Service – Arvest Bank has locations in Arkansas, Oklahoma, Missouri and Kansas. In addition to traveling to our client’s multiple locations for employee education meetings, we are available to meet with your 401(k) committee for Plan and Investment Review meetings and to address any issues or concerns.
- Education – Communicating with your employees is one of the most important aspects of what we do. We will work with you to create an Education Policy Statement (EPS) for enrollment and education meetings. We can offer group and/or one-on-one meetings, depending on what works best for your employees.
- Fiduciary (in writing) – Arvest Wealth Management can act, in writing, as the 3(21) Investment Advice Co-Fiduciary or 3(38) Discretionary Investment Manager Fiduciary. Below are the definitions of each:
- 3(21) Investment Advice Co-Fiduciary – An ERISA 3(21) is one who acknowledges a fiduciary role without taking discretion; they provide investment advice, but leave the ultimate decision to the plan sponsor.
- 3(38) Discretionary Investment Manager Fiduciary – A 3(38) Fiduciary is an “investment manager” and by definition is a fiduciary because they take discretion, authority and control of the plan’s assets. ERISA provides that a plan sponsor can delegate the significant responsibility (and significant liability) of selecting, monitoring and replacing of investments to the 3(38) investment manager fiduciary. As a 3(38) fiduciary, Arvest Wealth Management will always consult with our clients to discuss our rationale for selecting and/or replacing plan investment options before actually doing so. But Arvest Wealth Management, as the 3(38) fiduciary, has sole legal responsibility (and therefore sole legal liability) for making such calls.
- Investment Selection and Monitoring – We will work with you to create an Investment Policy Statement (IPS) for selecting and monitoring the investments in the plan. The IPS will establish the guidelines that we will utilize to manage your investments. We will utilize multiple research tools and reports to help monitor the plan investments. We will provide your 401(k) committee with Plan and Investment Reviews in order to document that we are doing our due diligence.
- Trustee – Arvest can act and sign as the directed Trustee on your plan.
- Retirement Plan Fiduciary Review – Arvest can provide an independent fiduciary review of your plan, including plan design, investments, fees and education. Please contact us today for additional information.