Individual(k)™

Designed for sole proprietors and financial advisors, Ascensus’ Individual(k) plan solution offers a full range of support options to start a 401(k) plan or manage existing plans for small businesses.

A Big Plan for a Small Business

Individual(k) is an easy-to-implement and cost-effective plan to help self-employed individuals maximize retirement savings.

Individual(k) provides business owners1 with the same advantages of larger 401(k) plans—without the extensive administrative responsibilities, complex discrimination tests, and associated costs. You have the flexibility to choose from two options to meet your clients’ needs.

Individual(k) is a trademark of Ascensus, LLC.

Daily valued plans (Commission-based, fee-based, and level-commission)

Investments – Open architecture investment platform with access to thousands of funds

Automated account access – Dedicated website and toll-free Interactive Voice Response System with account management tools

Account statements – Delivered quarterly

Ideal for – Individuals who prefer to have control over their account and immediate access to balances and information through a plan website

Non-daily valued plans (Balance forward)

Investments – Allows your clients to open an account through your broker-dealer

Automated account access – Provided by your broker-dealer

Account statements – Delivered annually

Ideal for – Individuals who prefer to work with a financial advisor who can select and oversee investments and transactions

Solutions for the life of the plan

Plan services:

  • Recordkeeping and administration
  • Contribution, loan, and distribution processing
  • Trust services
  • Client Service Team

Plan design and setup:

  • ERISA/plan document services
  • Plan Establishment Kit with easy-to-follow instructions

Tax form preparation:

  • IRS Form 5500
  • IRS Form 1099-R filing

Benefits

For Advisors:

  • Dedicated sales support team
  • Financial professional website
  • Flexibility to choose our open architecture investment platform or to go through your broker-dealer
  • Ability to support multiple compensations

For Business Owners:

  • Tax incentives
  • Higher contributions
  • Loan provisions
  • Roth capabilities
  • Low-cost implementation
  • Simplified administration
  • Rollover opportunities for account consolidation

1 In general, Individual(k) is for businesses without full-time employees. The plan may still be viable if employees are union workers, non-resident aliens, under age 21, or working fewer than 1,000 hours per year.

For daily valued plans: Ascensus may receive compensation from certain plan investment options (such as mutual funds) for services that Ascensus provides to those investment options, including processing the purchase and redemption of fund shares and participant-level fund recordkeeping. The compensation paid to Ascensus by those investment options is based either on a percentage of the average daily net asset value of shares invested in the fund, or on a fee per each participant that invests in the fund. This compensation is sometimes referred to as sub-transfer agency fees, shareholder service fees, revenue sharing, or other terms. The rate of compensation generally ranges from 0.05% to 0.35% (5 to 35 basis points) of average daily net asset value of shares invested in the fund, or $2 to $20 per participant that invests in the fund, although actual amounts received may differ depending on the investment options and plan services selected.

For fee-based and level-commission plans: Any plan investment option that does not pay to Ascensus annually at least 0.25% (25 basis points) of the average daily net asset value of shares invested in the investment option, Ascensus will debit from participants invested in that investment option a fee equal to the difference between the amount that the investment option pays to Ascensus and 0.25%. Ascensus will debit this fee quarterly. This fee will be capped at $62.50 per participant per calendar quarter or a total of $250 per participant per calendar year.

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