Services

AFPlanServ can help you meet the federal requirement of establishing a written Plan. We can guide you through the decision-making process to determine what will be allowed in the Plan(s).

Steps to Establish a Plan:

Determine Terms and Provisions

A Plan must be maintained under written program requirements containing: 

• Who is eligible to participate and when may they begin participation
• The benefits available under the plan, including employer contributions if applicable
• Contracts or other investment options available under the plans (for 403(b) plans)
• The time and form under which distributions would be made
• Optional provisions in the plan including catch-up contributions, hardship, and other in-service distributions, loans, transfers, and rollovers

The written Plan requirement does not mean that the Plan must be contained in a single document. For example, the Plan may consist of:

• • Specimen or prototype Plan document
  • Adoption agreement
  • Loan policy, hardship policy (if a 403(b) Plan), and unforeseeable emergency policy (if a 457(b) Plan)
  • Investment contracts and/or mutual fund options
  • Other participant communication

Select Approved Providers

Approved providers are those investment companies to which the employer has decided to permit Plan contributions.

Employer responsibilities include, but are not limited to:

• Requiring the provider to enter into an information-sharing agreement with the Plan
• Maintaining a list of approved providers (in the plan document for 403(b) Plans)
• Distributing provider listing to all eligible employees upon request (at least annually, usually with Universal Availability notification for 403(b) Plans)

Sign and Execute all Plan Documents

403(b) and 457(b) Plan documents consist of all the individual documents that collectively make up your written Plan. Your Plan must maintain compliance with Internal Revenue Code Section 403(b) and/or Code Section 457(b) and other related regulations and guidance to avoid possible penalties or plan disqualification.

Under the Internal Revenue Code, limited types of investment vehicles may be used to fund a 403(b) or 457(b) Plan. 

Eligible Investment Vehicles

• Annuity contracts
• Mutual funds held in a custodial arrangement
• Collective Investment Trusts

Approved Vendors Only

Employers may limit the number of vendors offering investments. Vendors should be willing to enter an information-sharing agreement with the Plan sponsor so the employer can meet its administrative responsibilities. 

Simplify your payroll process at no additional charge to you. You can submit one data file and one payment for all approved providers. This service allows the employer to remit all Plan contributions to one location. We will separate the contributions among the providers for your Plan based on the instructions you provide in secure, electronic data files.

AFPlanServ may work with you on two different service levels, an open architecture or common remitter process. An open architecture system allows you to continue payroll processes with minimal disruptions, allowing employers to continue dealing directly with their approved providers. Common remittance is an additional service that allows you to remit all Plan contributions in a single payment.

Common Remittance Benefits:

• One process for your payroll department
• Consolidation of data
• One file (not a separate file for each provider)
• Secure, electronic transfer of funds and contribution information
• No additional cost

 How it works:

You submit:

• Census file of the Plan participants
• Policy file of the consolidated bill from all providers
• Register file of the deductions from all participants

Upon receipt, we will:

• Separate contributions among the approved providers
• Reconcile and forward details and dollars to each provider to be posted

The Internal Revenue Service (IRS) audits every type of qualified plan. So, it's important to maintain policies and information that demonstrates compliance. Should an audit occur, AFPlanServ will provide reports of your Plan activity upon request, including:

Year-to-Date Reports:

• Contributions: Total amount of contributions made by Plan participants to approved providers
• Distribution information: total amount of distributions made to Plan participants from providers
• Loan: Total amount of loans taken by all Plan participants
• Hardship: Total amount of hardship distributions made to 403(b) Plan participants from providers

Asset Account Balance:

• Provider: Total account balances, by provider, of all Plan participants
• Participant: Total account balances by participant, of all Plan providers

If the IRS does audit your plan, it will likely also ask for additional information including plan documents, eligible employees, annual universal availability notices, and salary reduction agreements. Please ensure you maintain all documentation related to your plan.

What sets us apart from other Third-Party Administrators is our availability from 7:00 a.m. to 7:00 p.m. CST to answer questions and help when you need it. Our live team members are dedicated to Plans in your state, ensuring that you and your employees receive the necessary support and guidance.

In addition, account managers are available for:

• On-site assistance
• Educational meetings
• Group meetings
• Enrollments