[topic 1]

Please Note...

This page offers technical and other detailed information that many of our 401k clients find superfluous (and boring); all they care about is that Web 401k is secure and easy to use.

If you do choose to read the below, please don't feel intimidated by its details (particularly in the three "processing features" sections). We offer the specifications because we've received requests for the information. You can easily use Web 401k without understanding its inner-workings much as you can operate an automobile quite successfully without understanding the functionality of what's under the hood.

Remember, Web 401k knows the rules and regulations, so you generally don't have to -- and the system has a convenient context-sensitive Help system you can access whenever needed.

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[topic 2]

General System Features

Web 401k is lightening fast and powerful, yet it's easy to use.

Functions and capabilities are divided between two web portals (called Gateways): the Plan Sponsor Gateway (click here to go to details page) and the Plan Participant Gateway (click here to go to details page).

Each Gateway is customized to the features you choose to include in your 401k plan (click here for available plan customization options).

Basic system features include:

-- Pages that load in seconds, even on low bandwidth, dial-up connections (view details)

-- Capacity for an unlimited number of 401k investment options

-- Capacity for an unlimited number of plans (as limited by IRS rules) and employees for each plan

-- User-defined data archival periods, wherein you can define the number of days you want Web 401k to keep detailed information "live". For example, if 90 days of information are kept "live," the system automatically moves all prior activity to an archived database and posts starting totals (by fund, by source) to the "live" table to keep balances accurate.

-- Archived data that's accessible, as appropriate, through both Gateways

-- A detailed audit trail of all changes made to the database, including the date and time a change was made, the user who entered the change, the effect of the change, and the type of change made

-- A running record of fulfillment of employee requests (key to ERISA 404c fulfillment; click here to read about Web 401k's ERISA 404c features)

-- An Online Help system that provides context-sensitive help

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[topic 3]

Account Setup and Maintenance

Your company can run one or more retirement plans via Web 401k. 401k plans are by far the most common.

-- The system places only legally-imposed limits, if any, on the number of qualified plans you can sponsor.

-- If your company already has a retirement plan, we can easily convert it for use with Web 401k, particularly if its a 401k plan. All plan conversion services are free (although we can't speak for your current provider; certain exit fees may apply), and you can likely keep or even add to your current 401k investment list. Contact us if you're interested in converting your existing 401k plan for use with Web 401k.

-- Web 401k places only legally-imposed limits, if any, on the number of employees that can enroll in any particular plan.

-- Web 401k has an import filter for initial import and setup of employee records.

-- The system automatically identifies highly compensated employees based on published parameters, and integrates the information into its IRS compliance testing functions, which can be run -- in seconds -- as often as you want.

-- Employees can participate in multiple plans simultaneously (within legal limits); Web 401k monitors each employee's activity on a per-plan as well as cumulative basis.

-- You can add, update, and delete (more accurately, disable from participation) employee information at any time through your customized Plan Sponsor Gateway (to read more about your customized Plan Sponsor Gateway, click here).

-- Web 401k allows for flexible plan years, including short plan years, defined on a plan-by-plan basis.

-- Web 401k allows for flexible payroll cycles defined on a plan-by-plan basis.

To set up a Web 401k self-service 401k account for your company, either submit an order form or simply contact us and we'll guide you through the simple process.

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[topic 4]

401k Contribution Processing Features

Web 401k offers powerful yet easy-to-use contribution processing functions. Most processing functions are highly automated to your customized 401k plan: you simply upload the period's payroll data and click "Process".

Advanced options for special situations and more complicated 401k plans are present, however, and at your service at a mouse click. Advanced options include...

-- Six predefined contribution columns (money sources), three predefined loan payment columns, and four predefined compensation columns (Profit Sharing Compensation, Matching Compensation, Testing Compensation, 404c Compensation) for regular processing.

-- The ability to process “special allocations” at any time for any money source.

-- A built-in "Matching Calculator" to automatically calculate any employer matching amounts based on Matching Compensation.

-- A built-in "Profit Sharing Calculator" to automatically calculate any profit sharing amounts based on Profit Sharing Compensation.

-- The ability to upload contribution, loan, and compensation data (using a predefined import file format) directly through the Web interface.

-- Validation checking with automatic generation of an error/exception report.

-- A flexible contribution system with the ability to do general contribution processing at any time.

-- The ability to process negative amounts. (Negative amounts do not automatically generate disbursements.)

-- Contribution processing automatically held until money is deposited into the trust account.

-- The ability to generate an export file to a trading platform and/or asset custodian system and to import and process trade confirmation information from that system.

-- The storage of all necessary information for processed allocation records including PlanID, EmployeeID, FundID, TransactionID, LoanID (for loan related activity), NAV, Source, and As Of or Effective Date, Trade Date, Settlement Date, Amount, Shares, and Description.

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[topic 5]

401k Loan Processing Features

With Web 401k you can offer the highly-popular 401k option of 401k loans within your company plan without worry, because loan processing is simple when you use Web 401k:

-- Web 401k allows for up to three concurrent, independent loans per participant per plan.

-- Web 401k automatically calculates available loan amounts.

-- Loans are set up using the following key criteria: Principal Amount, Duration, Interest Rate, and Payroll Frequency.

-- Any loan fees you choose to establish (we charge none) are included in APR (annual percentage rate) calculation.

-- Loan payments are automatically allocated between principal and interest portions.

-- Normal repayments, negatives, partial payoffs, and complete payoffs can be accommodated.

-- Loan re-amortization is made based on changes in duration or pay frequency.

-- Loan delinquency reports are generated, with e-mail notifications sent to the employee/participant.

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[topic 6]

401k Distribution and Transfer Processing Features

Processing 401k distributions and transfers is simple with Web 401k:

-- Web 401k automatically calculates amounts available for distribution, taking into account pertinent factors such as outstanding loan amounts and vested account balances.

-- Transfers and distributions are limited by Fund/Source activity.

-- Spousal consent is determined by the Plan Administrator when approving distribution requests.

-- Web 401k generates an export file for the asset trading platform and check writing systems (if applicable), and imports and processes trade confirmation information from those systems.

-- Web 401k automatically processes residual distributions and transfers.

-- Web 401k splits distributions with a portion as cash and a portion as a rollover, with the ability for the rollover portion to be processed independently of the cash portion.

-- Web 401k automatically notifies your plan administrator via e-mail of any hardship suspensions.

-- Web 401k allows transfers in the form of $ to $, % to %, $ to %, and realignments. Transfers can be performed at the source level or for an entire account.

-- If an account is "Pending QDRO" the system displays a warning flag during distribution, transfer and loan activity.

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