HORAN Capital Advisors

Plan Design

HORAN focuses on creating outcomes for both the employer and the employee. Plan design is a powerful way to guide individuals to reach a thriving retirement nest egg, and in turn, a successful retirement.

Companies have more influence than they may realize on the success of their participants to retire with a benefit adequate to meet their retirement needs which may stretch into the decades.

The data cannot be ignored:

  • 82% of participants would not save if not for their company’s 401(k)*
  • 56% of participants’ primary or only source of retirement savings is their company plan*
  • 29% of employees do not realize the full value of their company matching contribution**

HORAN will work to understand the goals and create a plan design which maximizes the benefits for both the employer and employees. While there are a myriad of plan design choices, there is an optimal way to structure a retirement plan to create a meaningful benefit.

Focus Areas:     

  • Utilization of eligibility rules, vesting schedules, non-discrimination testing variations, etc.
  • Automation for administration and employee engagement
  • Employer contribution configuration: Match, Profit Sharing, Safe Harbor, Social Security integration, new comparability/cross testing and utilization of defined benefit/cash balance plans.
  • Design elements impact every aspect of your plan – from investments and recordkeeping to compliance and communication. In our experience, one overlooked design flaw at the outset can cause unnecessary difficulties later.

*Retirement Insights Searching for Certainty JP Morgan Asset Management 2011