Frequently Asked Questions

Setting Every Community Up for Retirement Enhancement (SECURE) Act, a bill to enable employers to provide their staff with a road to retirement. Under the SECURE Act, multiple employers can pool funding under one plan so that they can afford to give their employees 401k benefits.

The SECURE 2.0 Act of 2022 enhances retirement savings options like 401(k)s and 403(b)s, building on the SECURE Act of 2019. It aims to make it easier and more affordable for small businesses to offer retirement plans, offering tax credits to offset costs. New provisions focus on increasing retirement readiness, benefiting both employers and employees and potentially improving retirement outcomes.

Yes! Under the SECURE Act, all employers are eligible to enroll in retirement
plans as long as they have employees.

NDTs are mandatory yearly tests that make sure non-Safe Harbor 401(k) retirement plans help the entire staff, not just the highest paid employees and owners. Not meeting these requirements leads to penalties, fines, and lots of administrative work.

Some examples of NDT tests include:

• ADP test: Compares the average percentage of salary that HCEs defer to the average percentage that NHCEs defer.
• ACP test: Applies to companies that offer 401(k) match or after-tax contribution.

As defined by the Internal Revenue Service, automatic enrollment or automatic contribution arrangement are “a feature in a retirement plan that allows an employer to ‘enroll’ an eligible employee in the employer’s plan unless the employee affirmatively elects otherwise.”

Utilizing an auto-enrollment feature allows the employer to claim an additional tax credit of $500 per year for a 3-year taxable period with the first taxable year the employer includes the auto-enrollment feature.

Non-elective contributions are funds employers choose to direct toward their eligible workers’ employer-sponsored retirement plans regardless of if employees make their own contributions.

The vesting schedule determines how many years the employee must work for the company (“years of service”) to own a percentage of the employer’s contribution. Peppermint® plans have immediate and graded vesting options.

Just CLICK HERE and we’ll get started.

Peppermint® utilizes an online platform in conjunction with TRPC and Grey Fox Wealth, a (Registered Investment Advisory) RIA, to help with the investment selections in the 401(k) plan. This makes the process easy and helpful for those employees participating as they would only need to answer minimal questions to help set up their investment allocations. This is done through a risk profiling tool to make sure that investments in your portfolio meet your tolerance level for risk. Keep in mind, you don’t have to accept what the tool provides you, but it is certainly helpful to understand what type of investments match up with your age, time of retirement, and tolerance level for risk. To learn more about Grey Fox Wealth CLICK HERE.

Less fiduciary risk: Leave the fiduciary responsibilities to us! This way participating employers are not subject to the same level of liability. Peppermint® maintains the highest professional standards in administering the plan. 

Potential savings: Pooling investments from several organizations into one large group means each employer has a smaller initial cost to launch their retirement plan. The pool also helps to reduce administrative costs over the life of the plan. 

Participating in a PEP may give you up to $15,000 in tax credits over 3 years. Consult your tax advisor to determine credits. 

Less manpower for plan administration: As the Pooled Plan Provider (PPP), Peppermint® oversees plan launch, operations, notifications, filings, enrollment, and other duties. Peppermint® is perfect for employers that need a plan that has its own administration. 

Attract and retain top talent: 401k options are a major reason why employees decide to work for a new company or continue to serve their current one. It shows that you care about your staff, and it gives them peace of mind knowing they are on the road to retirement. 

Let us introduce you to our partner, Mid Atlantic Trust Company. They serve as the custodian that holds all the 401k contributions invested into the market. Mid Atlantic handles millions upon millions of dollars in transactions a day. Your funds are secure because of them. 

Also, 401k accounts are some of the most secure accounts you can have. There are not frequent withdrawals from your account as would take place in a bank account because the funds are for retirement.  

Peppermint® is one of many retirement savings options, but we do a things better. Like making the process of creating and launching a PEP simple, understandable, and fun. We don’t offer hundreds of options, and we are not a big bank with dozens of pages of fine print. We are business owners and entrepreneurs just like you, and we do one thing and do it well!
To see how Peppermint® compares to a 401k CLICK HERE

We handle the admin, including filing IRS 5500 and 8555-SSA forms. Peppermint® will prepare, sign, and file your IRS forms so you don’t have to deal with the paperwork or liability associated with missed requirements.
To download our view Roles and Responsibilities flyer CLICK HERE

*There are no audit fees. Peppermint® takes the burden of the fees associated with audits.

Peppermint® handles all the administration, including compliance, for you.
To download or view our Roles and Responsibilities flyer CLICK HERE

In a Safe Harbor 401(k) plan, the employer avoids calculations and compliance tests by matching their staff’s investments and refraining from using a vesting schedule. The employer makes annual contributions for employees, and those contributions are vested immediately. This means if the employee separates from the employer, they can take all their investments with them. 

• Employer costs and fees: $750 set up fee (one time) + $1200 annual fee or $100 per month
• Participant fees: $8 per participant each month +.25% on contributions 
• Employer directed plans will require calculations and testing at an additional fee of $1000 annually
• To download or view our full pricing and fees list CLICK HERE

Yes!  The Retirement Plans Start Up Costs Tax Credit allows eligible employers to claim half of the necessary startup and administrative costs for new plans, maxing out at $5,000 per year for up to three years. In addition, expenses to educate employees about the plan are also allowable deductions.

To use our tax credit calculator CLICK HERE

• We provide a platform that gives automated investment advice that recommends a portfolio based on each individual’s responses to questions to determine their financial goals. Employees who want more flexibility can choose and manage their own funds.
• Peppermint® also provides a financial wellness program that
  will provide engaging educational information to participants.
• Need help with investment options? Employers have valuable access to an investment advisor.
• Peppermint® participants have access to Vanguard’s major asset class and risk category funds.

PEPs or “Pooled Employer Plans” group various employers together into one large retirement plan. Stand-alone 401ks treat each business as an individual, but PEP’s employers make up one large group, which means less upfront investment and less risk throughout the life of the plan. The other great thing about Peppermint® is that we are the Pooled Plan Provider (PPP), meaning we take care of all the administration, so our businesses don’t have to take on additional paperwork or tasks. All of which makes it easier for SMBs and Startups to offer great employee retirement options.

TLDR: PEP means faster enrollment, less investment, risk, and administration!