Companies moving from a SIMPLE IRA to a 401(k) plan are usually seeking some additional flexibility and have outgrown their current SIMPLE plan. The questions arise: What is a SIMPLE retirement plan? And how is it different from a 401(k)?

SIMPLE is an acronym for a Savings Incentive Match Plan for Employees. There two SIMPLE plans, SIMPLE IRA and SIMPLE 401(k). Both are tax-deferred retirement plans provided by employers. The goal of a SIMPLE plan is similar to other retirement plans: to allow employees a simple way to save and invest money for retirement. We’ve outlined a few of the basics of SIMPLE and traditional 401(k) plans to highlight some important similarities and differences.

Have you ever had to endure a 401(k) Audit? For most plan sponsors, they are not a pleasant experience. We're not referring to being audited by the DOL or IRS, we're referring to the annual audit attached to Form 5500 that is required for “large plans”. Plan sponsors dread the annual audit because of the time, effort, energy, and cost required. But it doesn’t have to be that way.

In an effort to alleviate the pain caused by the annual 401(k) audit, we have prepared a few pieces of information that you should know about these audits. If you take advantage of even a couple of these, you will have a better experience moving forward.

The 401(k) industry is a complex mixture of rules and regulations that are written and enforced by numerous government entities. Due to this arrangement, there are a lot of complications that can arise. Every year, 401(k) plans around the country are subject to government non-discrimination and coverage testing. Because the Federal Government offers substantial tax benefits with the 401(k) plan, they want to ensure that owners, executives, highly-compensated, and key employees aren’t unduly benefited from the plan compared to all other employees.

Failing an annual test may result in possible refunds, fines, and tax penalties. It is vital that an employer understands how the testing works to better fulfill fiduciary responsibilities. Below, we’ve outlined the most common tests that are performed each year.

In the 401(k) marketplace, you will occasionally find separate companies that will sign onto your 401(k) plan in the role of 3(38) Investment manager, and even 3(16) Plan Administrator. However, when sponsors use these separate companies without a Named Fiduciary, their combined plan services often become fragmented and expensive.

One of the things that makes a HealthEquity Retirement 401(k) plan different than most is that HealthEquity Retirement signs and acts as your 3(16) Plan Administrator. As we explain this to prospective clients, especially those implementing a plan for the first time, they often ask questions about the role and responsibilities of a 3(16), so we thought we’d break it down for you.