[topic 1]

What are the three main advantages Web 401k has over other 401k plans?

1. Price
We offer two levels of plan design: Economy 401k and Elite 401k. Pricing for our Economy 401k starts at just $695 a year ($465 for one-person plans), while pricing for our Elite 401k starts at $995 a year ($495 for one-person plans). Both products are all-inclusive; pricing increases only with plan size. Our Elite 401k offers heightened investment and plan design flexibility. Both products include unlimited access to your plan-specific Web 401k web portal and all the functionality it has to offer.

Visit our Pricing & Price Comparisons page for complete price lists as well as links to a chart comparing our Economy and Elite 401ks and how much money -- more than 60% in most cases -- Web 401k can save your company.

2. Investment Flexibility
No 401k beats Web 401k's investment flexibility. Our Elite 401k offers unlimited investment flexibility. Even our Economy 401k gives you your choice of self-directed brokerage accounts or any family of no-load mutual funds, all from top name providers.

3. Ease of Use
Web 401k is incredibly easy to use. Menus are simple and self-explanatory. Pages load quickly. A high speed Internet connection is NOT required. Most small businesses can manage a 401k plan via Web 401k in less than 15 minutes a month. The system is live 24-7 with all processing occurring on the spot. This is not only convenient for you, it also means participants can join the plan, gather information about it, choose and amend investment designations, etc., on their own time from their own homes' Internet connections rather than on company time.

Web 401k is plan-specific. We customize each client's online Plan Sponsor Gateway and Plan Participant Gateway to that client's EXACT 401k plan.

Our knowledgeable personnel will help you design the 401k plan that will be right for you and your employees. We offer two levels of customization: Choose Web 401k Elite for unlimited investment flexibility, to offer employer matching and/or profit sharing contributions, choose vesting schedules for those contributions (if any), and/or offer 401k loans plus have unlimited free phone-based technical support and a three-year renewal price guarantee. Choose our Economy 401k for less extensive but still substantial investment flexibility (see above), to offer profit-sharing contributions and schedule vesting for such, and to receive free phone-based support during your plan's setup period.

All Web 401k plans include a 15-day money-back guarantee and unlimited free e-mail and online support. There's nothing easier -- not at these prices.

back to page topics

[topic 2]

What are the two main differences between Web 401k and other 401k plans?

1. Cost is the primary difference. It could well be the mitigating factor in whether or not your company can sponsor a 401k.

-- No reasonably comparable 401k plan is priced as economically as Web 401k.

2. Investment choice is the secondary difference:

-- Web 401k Economy lets you choose a single family of no-load mutual funds or you can choose self-directed discount brokerage accounts (for access to stocks, bonds, and more); see our Investments pages for specific investment listings and our Options page for a more thorough description of Web 401k Economy.

-- Web 401k Elite lets you choose as many no-load mutual fund families from throughout the industry as you like, and/or you can choose any of various brand name self-directed discount brokerage accounts (for access to stocks, bonds, and more); again, see our Investments pages for specific listings.

-- Self-directed brokerage accounts mean each plan participant has access to his or her choice of investments. Stocks, options, foreign securities, mutual funds, bonds, corporate, municipal and zero coupons, certificates of deposit, government obligations, and UIT's are all available.

-- Competing 401k plans offer far less flexibility. Some even assign investment "options," usually their own, and charge significant fees for any nonproprietary investments you request.

[topic 3]

What is a "401k prototype plan"? What does it mean that Web 401k includes one?

The prototype plan is the master document describing and defining every aspect of a 401k plan. The IRS analyzes this master and deems it "approved" or "disapproved." Once approved, the master can be used to create 401k plans offering any combination of the approved specifications.

-- Web 401k's IRS-approved prototype plan allows for a variety of possible participation eligibility requirements, investment options, employer contribution options (none of which are mandatory), vesting options, loan options, safe harbor plan management options, automatic enrollment options, and more.

-- Web 401k Economy offers less flexibility than does Web 401k Elite. See our Options page for the customization options available within each; relative pricing can be found on our Pricing page. Suffice it to say that we've applied our nearly 20 years of industry experience to including the options and parameters key to ongoing 401k plan health and popularity.

-- Your plan's ongoing IRS qualification depends on, among other things, that your plan pass its annual IRS compliance tests (unless you've chosen to run your plan via the IRS-approved safe harbor method of plan administration). Web 401k includes point-and-click compliance testing with results in seconds; we recommend running a quick compliance test each month after you finish the month's processing to see long before the official year-end tests are due if any undesirable trends are surfacing. For our safe harbor clients, compliance testing functions are replaced with largely automated safe harbor functions.

[topic 4]

We already have a 401k plan, but it's a headache and costs a fortune. Can we switch to Web 401k?

Yes. Our streamlined straightforward plan conversion process makes plan takeovers both easy and efficient -- and there's no lengthy black-out period. Our five-point plan conversion procedure is:

-- First, we get your new customized Web 401k plan online and ready to accept participants.

-- Employees can then log in from any Internet connection to define their personal profiles and choose investments to receive their 401k contributions from that date forward. Genearlly, plan participants can continue with the same investments they were using within your old plan, or they can select new investments, if any, that you've chosen to incorporate into your Web 401k plan.

-- Meanwhile, we guide the process of having your former 401k's assets liquidated and the proceeds transferred directly into the new plan.

-- Web 401k automatically properly allocates the incoming assets into each relevant participant's new personal investment designations.

-- This entire plan conversion process is transparent yet can be monitored by employer and employees alike.

Visit our Plan Conversions page to learn more about converting an existing 401k plan into a Web 401k plan.

back to page topics

[topic 5]

Can we hire you to set up and run our 401k? What is the cost?

401(k) Pro, Inc., does not offer full service 401k plans, but we can recommend an affordable, reliable provider once we know your 401k needs.

Please contact us if you're looking for a full-service, reliable, small business plan provider, whether online or otherwise.

[topic 6]

We've never sponsored a 401k plan before. Will someone help us with the particulars?

In establishing your Web 401k plan, we explain 401k basics to you as well as each customization option available within our Economy and Elite plans and how each customization item typically affects the operation and popularity of a plan serving a company of your size.

Once you choose the features you want for your plan, we hardwire your decisions into your Web 401k portals. Not only do your Plan Sponsor Gateway and Plan Participant Gateway thereafter list only the options and services relevant to your particular plan, they also are empowered with a high degree of seamless automation that saves you and your employees time every time you interact with the system.

The Gateways contain content-specific help screens that link to a free-access online support center dedicated to 401k plan operation via Web 401k.

You also receive FREE one-on-one support and training via telephone during your plan's launch period plus written step-by-step instructions for launching your company plan, introducing it to your employees, and completing common management tasks.

Thereafter, our Elite clients continue to enjoy free telephone based support; Economy clients can access telephone based support on a pay-per-use basis. All Web 401k clients enjoy unlimited free e-mail and online support. Please visit our Web 401k Technical Support page for details.

[topic 7]

What if we start with a self-service plan, then later decide we want an outside-serviced plan?

If, for any reason, you decide you no longer want to run your own 401k plan, we can quickly convert your Web 401k plan into one serviced by an outside companyl we can even recommend a quality provider who specializes in 401k plans of your size. Just contact us if and when the need arises.

[topic 8]

Can Web 401k handle 401k matching contributions? How about profit-sharing contributions? Are either mandatory? Do we have control over rates and vesting schedules?

Web 401k allows for the most popular 401k options permitted under current law, but it does not mandate any of them. Employer matching contributions, profit-sharing contributions as well as qualified nonelective contributions are all allowed within our Elite plans; Economy plans allow only for profit-sharing and/or qualified nonelective contributions.

-- With Web 401k, you decide whether to offer or exclude each type of employer contribution.

-- If you decide to include employer contributions, you choose the type(s) (matching, profit-sharing, and/or qualified nonelective) and define the rate(s) at which each type of contribution will be made. Most any rate allowed by 401k regulations is permissible within Web 401k.

-- If you decide to include employer contributions, you define the vesting schedule, too. You can choose a different schedule for any matching and profit-sharing contributions, but qualified nonelective contributions by law are always 100% immediately vested when made.

Remember to visit our Options page for a listing of the customization options available within our Economy vs. Elite 401k plans; relative pricing is on our Pricing page.

back to page topics

[topic 9]

Does Web 401k let us exclude part-time workers from receiving 401k employer contributions?

To exclude part-timers from receiving employer contributions, simply exclude them from participation in the plan by setting appropriate length of service and other participation requirements for your plan.

-- If you want part-timers to be able to participate in your 401k plan but not receive employer contributions, you're better off not offering employer contributions but instead offering some type of bonus to the groups of employees you seek to reward. 401k contributions are generally defined as a percentage of pay, including bonuses, so paying bonuses will allow employees to contribute more to their 401k accounts themselves (in lieu of your making contributions for them). Please contact us or consult your tax advisor for details and further options.

[topic 10]

Can Web 401k handle 401k loans? Are they mandatory? Do 401k loans increase the price of Web 401k?

Web 401k offers two levels of plan cusotmization: Economy and Elite. Loans are allowed within our Elite plans.

There is no extra charge for including 401k loan capabilities in a Web 401k Elite system.

-- Your company can charge plan participants a "reasonable" (in the IRS' eyes) fee for processing 401k loans; $25 to $50 is most common. We, however, do not charge you or your plan's participants any loan fees.

-- If you choose to include loans within your Web 401k plan, your customized web portals will include easy point-and-click loan tracking and processing tools.

NOTE: In 2002 the availability of 401k loans to certain business owners and officers was liberalized within what are known as the EGTRA Amendments. You can view a summary of the amendments within this website's ERISA 404c Compliance section. If you're a business owner and intend on taking out a 401k loan, we suggest you talk with a qualified tax advisor first to make sure you're clear on the new, more liberal regulations.

[topic 11]

Can Web 401k handle 401k hardship withdrawals? Do we HAVE to offer them within our 401k plan?

The Internal Revenue Code says hardship withdrawals MUST be available to qualifying participants of every 401k plan. Both our Economy and Elite plans therefore contain hardship parameters; all Web 401k systems include hardship withdrawal processing functions as well as informative literature for plan participants.

-- Your company can charge its plan participants a "reasonable" (in the IRS' eyes) fee for processing hardship withdrawals; $25 to $50 is most common. We, however, do not charge any hardship withdrawal fees to you or your plan's participants.

-- Your customized Web 401k portals include simple point-and-click tools that track and process 401k hardship withdrawals as well as any information participants request regarding them.

[topic 12]

What kind of investments are available with Web 401k? Can we offer 401k self-directed brokerage accounts?

We offer two levels of plan customization: Our Economy 401k clients pay a little less but enjoy a little less investment and plan customization flexibility than do our Elite clients.

Our Economy clients can select a single family of no-load mutual funds for their company plan, or they can use self-directed discount brokerage accounts.

Our Elite clients can select as many no-load mutual fund families from any of more than 600 providers for their company plan, and/or they can select self-directed discount brokerage accounts from any of several well-known providers.

Regardless of which approach you choose...

-- The mutual fund families are all SEC-regulated and all offer a diversity of risk-return scenarios.

-- Even if you go with an Elite 401k, we often recommend choosing no more than three families of mutual fund investments because of administrative complexities that can arise. Each family is designed by the hosting mutual fund company to encompass the full spectrum of investing needs, so even a single family should provide your plan and its participants with sufficient diversity.

-- Self-directed brokerage accounts (through Schwab, Ameritrade, Fidelity or others) provide a greater number of investments and investment types, if that's what you're looking for. Such are available in both our Economy and Elite plans.

-- Self-directed discount brokerage accounts offer a tremendous selection of no-transaction-fee mutual funds as well as stocks (major exchanges and OTC markets), options (covered calls), foreign securities (both listed and OTC), bonds (corporate, municipal, and zero coupon), and certificates of deposit, government obligations, and UIT's, but the ample selection can prove overwhelming to some investors.

-- Visit our Investments section for specific listings of potential 401k investment options.

-- Read our Principles of Successful Investing for information pertinent to choosing investments for your company 401k plan.

-- Visit our Options page to quickly compare the customization parameters available within our Economy versus Elite 401k plans; relative pricing can then be found on our Pricing page.

[topic 13]

Why do we re-subscribe to Web 401k each year?

Your Web 401k annual fee grants you and your employees unlimited use of your customized Plan Spoonsor Gateway and Plan Participant Gateway plus our maintenance of those Gateways, including technological as well as content updates. For instance, we update each system at least annually to incorporate the new year's government-imposed 401k contribution maximums and other the regulatory parameters that help define your plan's IRS-compliant, highly automated operation.

Web 401k annual fees are generally at least 60% less than competitors'. Visit our Pricing & Price Comparisons page for specific numbers.

[topic 14]

Why do we pay for "eligible employees" instead of merely those who participate in our 401k plan?

Plan testing requirements set by lawmakers are written in terms of eligible employees, not participating employees. Your Web 401k program, therefore, is customized to account for all eligible (not just participating) employees.

The government's goal in creating the 401k plan was to encourage people to save money for their retirement. Lawmakers want all classes of workers to make use of the 401k, but they're particularly interested in spuring interest among wage earners who historically rely heavily on Social Security for their retirement income. Employers are permitted to restrict eligibility to participate in company 401ks somewhat, but government rules have been written to encourage participation among lower-paid and mid-level employees -- those who historically rely more heavily on Social Security and other government assistance during retirement.

There are numerous ways to encourage widespread participation in your company 401k plan. We explain the most successful tactics within the 401k Management Guide we provide all our clients. Feel free to contact us to discuss widespread 401k participation even if you're not yet a client.

[topic 15]

How does Web 401k help us keep our 401k in sync with IRS regulations?

We maintain several safeguards within Web 401k to help you keep your 401k in line with ever-changing IRS regulations:

-- Web 401k "knows" each year's relevant 401k contribution limits, among other things. The online service won't let you enter a contribution for a participant that will push the participant's year-to-date contribution total over the allowable maximum; the system even tells you how much, if anything, the participant can contribute without exceeding the maximum.

-- Web 401k "knows" each year's compliance testing parameters. At a mouse click, you can run the all-important ADP (average deferral percentage), ACP (actual contribution percentage), and top-heavy compliance tests, which every 401k plan must pass at year's end. We recommend running the tests each month as you wind up the month's processing so you can spot noncompliance trends long before the mandatory year-end testing; the tests take only a few seconds.

-- Web 401k Elite plans allow you to run your 401k plan using the safe harbor method of plan administration instead of using 401k compliance testing, if you prefer.

-- Web 401k will only accept data that pertains to the appropriate calendar year. You cannot process data under the wrong year's regulations.

back to page topics

[topic 16]

Does Web 401k help with IRS 401k compliance testing?

Yes -- at a mouse click, you can run the all-important ADP (average deferral percentage), ACP (actual contribution percentage), and top-heavy compliance tests, which every 401k plan must pass at year's end. We recommend running the tests each month as you wind up the month's processing so you can spot noncompliance trends long before the mandatory year-end testing; the tests take only a few seconds.

[topic 17]

Does Web 401k help with 401k year-end tax reporting?

Included with your Web 401k system is free access to our 401k FedForms website.

-- The 401k FedForms website contains annotated versions of relevant 401k-related federal reporting forms (Summary Annual Report, 5500 series, 1099-Rs, and more). The annotations tell you where within Web 401k to find needed information.

-- The website also tells you what forms are relevant to your particular plan, and when each form is due to the IRS.

-- Web 401k pulls many of the numbers together for you in a brief series of easy to read reports to further expedite your federal reporting processes.

back to page topics

[topic 18]

How else does Web 401k simplify 401k plan administration?

Because we're long-experienced in all aspects of 401k administration for plans of all sizes, we know plan administrators' needs and have created a series of brief, easy to read reports that let plan managers find the information they need -- quickly -- so they can do their jobs, quickly.

-- Whether it's reports summarizing investment accounts that accompany the month's contributions, or year-to-date account statements for plan participants, or information on outstanding 401k loans, the information is available at a mouse click.

-- Our 401k Management Guide (which you receive with your access codes to Web 401k) contains an index summarizing the content of each report and typical uses for the information.

back to page topics