RETIREMENT PLAN

MANAGEMENT

Retirement plan management and advisory has been the backbone of our firm since its inception in 1997. Today we advise to more than 50 retirement plans, predominantly in the Pacific Northwest. Matisse Capital is a firm for plan sponsors seeking premier retirement plan management, fiduciary consulting, and participant service.

 

It’s our opinion that retirement plan management boils down to two things:

(1) Simplifying Plan Administration for Plan Sponsors

(2) Increasing Employee Participation and Contributions

 

You can have an extremely well-designed plan, but if employees don’t participate, the plan is not serving its purpose.

 

Contrarily you can have a plan where all your employees participate and max out their contributions each year, but if the plan has high fees or lacks a good investment menu, participant assets may not grow as well as they ought.

A successful retirement plan structure keeps both plan sponsors and participants in mind, and doesn’t sacrifice one for the other.

SERVING PLAN SPONSORS

TO HELP THEIR EMPLOYEES SAVE MORE

PLANS

  • Easy to understand with top-rated service providers

  • Full-disclosure, transparent, low cost structures

SERVICE

  • One-on-one advisor access providing custom-tailored advice

  • Client focused, with 100% objectivity targets

DISTINCTION

  • Thorough and experienced fiduciary consulting to protect Trustees

  • Simplifying repeated tasks with advisors who enjoy educating plan sponsors and participants

REPRESENTATIVE CLIENTS

THE FUNDAMENTALS

OF A WELL GOVERNED PLAN

FIDUCIARY GOVERNANCE


Our corporate clients are committed to fulfilling their fiduciary obligation of providing exceptional retirement plans. Fiduciary responsibility regulations provided by the Department of Labor are nothing to be afraid of, so long as a well thought out plan is in place. A strong schematic will reduce fiduciary liability within a plan.




INVESTMENT ADVISORY


Our team provides investment education and advisory services to the fiduciary committee on a quarterly basis. As the advisor, Matisse Capital oversees the investment process; including fund selection, monitoring, and replacement when necessary. Through regular meetings, our team provides analytical and customized reporting that will help the client measure results and evaluate fund performance.




EMPLOYEE SERVICES


Investment advice and education is very important, and our team provides this to plan participants on a one-on-one level at no additional charge. Group plan education and enrollment meetings are held as needed. Ongoing employee communication is typically provided through regular quarterly newsletters and annual education seminars. Of course, employees always have unlimited access to our advisors for questions and concerns.





FIDUCIARY GOVERNANCE


Our corporate clients are committed to fulfilling their fiduciary obligation of providing exceptional retirement plans. Fiduciary responsibility regulations provided by the Department of Labor are nothing to be afraid of, so long as a well thought out plan is in place. A strong schematic will reduce fiduciary liability within a plan.




INVESTMENT ADVISORY


Our team provides investment education and advisory services to the fiduciary committee on a quarterly basis. As the advisor, Matisse Capital oversees the investment process; including fund selection, monitoring, and replacement when necessary. Through regular meetings, our team provides analytical and customized reporting that will help the client measure results and evaluate fund performance.




EMPLOYEE SERVICES


Investment advice and education is very important, and our team provides this to plan participants on a one-on-one level at no additional charge. Group plan education and enrollment meetings are held as needed. Ongoing employee communication is typically provided through regular quarterly newsletters and annual education seminars. Of course, employees always have unlimited access to our advisors for questions and concerns.





RETIREMENT PLAN

SERVICES

ROLES AND RESPONSIBILITIES

PLAN SPONSOR

RECORDKEEPER
EMPLOYEE
COMMUNICATION
PLAN
ADMINISTRATION
INVESTMENT &
FIDUCIARY SERVICES

Trustee/Custody

Daily Valuation

Participant Statements

Online Account Access

Compliance Testing

5500 Reporting

Loans & Distributions

Enrollment Meetings

Custom Enrollment Materials

Annual Educational Meetings

Quarterly Newsletters

Custom Plan Website

Individual Participant Services

Investment Policy Statement

Fund Selection & Monitoring

Asset Allocation

Performance Reporting

Client/Trustee Meetings

Annual Plan Review

YOUR PARTICIPANTS

SMALL-BUSINESS RETIREMENT PLANS

Choosing the right retirement plan for you and your employees

Here's a quick and easy guide to determining which is the best fit for your business and employees – it includes basic facts about different types of plans:

Title
SEP-IRA
SIMPLE IRA
Individual 401(k)
Small Plan 401(k)
Employer contribution deductibility
Contributions are deductible as a business expense and aren't required every year.
Contributions are deductible as a business expense and are required every year the plan operates.
Contributions are deductible as a business expense and aren't required every year.
Contributions are deductible as a business expense and aren't required every year.
Employer's responsibilities
May set up plan by completing Form 5305-SEP. No IRS reporting required.
May set up plan by completing Form 5304-SIMPLE or 5305-SIMPLE. No employer IRS reporting required. Bank or financial institution does most of the paperwork.
Draft plan document and adoption agreement to set up plan. Annual filing of Form 5500 may be required. Plan sponsors have various administrative and fiduciary responsibilities.
Plan sponsors have various administrative and fiduciary responsibilities. Matisse Capital provides day-to-day plan sponsor support. Recordkeeper provides recordkeeping and compliance services such as real-time compliance testing and Form 5500 preparation.
Withdrawals, loans, and payments
An employee may initiate a withdrawal at any time, subject to current federal income taxes and a possible 10% penalty if the participant is under age 59½.
An employee may initiate a withdrawal at any time, subject to current federal income taxes. If under age 59½, employee may be subject to a 25% penalty if it's taken within the first two years of participation, and a possible 10% penalty if it's taken after the first two years.
Can't take withdrawals until a specified event such as reaching age 59½, death, separation from service, or some other event as identified in the plan document. May permit hardship withdrawals, which may be subject to a 10% penalty if the participant is under age 59½.
Can't take withdrawals until a specified event such as reaching age 59½, death, separation from service, or some other event as identified in the plan document. May permit loans and hardship withdrawals, which may be subject to a 10% penalty if the participant is under age 59½.
Investment choices
Mutual funds, ETFs, and individual securities.
Mutual funds.
Mutual funds.
Mutual funds. Company stock and self-directed brokerage accounts.
Employee contribution limits
Up to $5,500 for tax year 2018 ($6,500 for employees age 50 or older). This is the total amount the employee can personally contribute to all SEP-, Roth, and traditional IRAs each year.
$12,500 for tax year 2018 ($15,500 for employees age 50 or older). Employees aren't required to contribute in any given year.
$18,500 for tax year 2018 ($24,500 for employees age 50 or older). Can't exceed 100% of compensation.
$18,500 for tax year 2018 ($24,500 for employees age 50 or older). Can't exceed 100% of compensation.
Employer contribution limits
For the 2018 tax year, up to 25% of the participant's compensation or a maximum of $55,000, whichever is less.
Option 1: Match up to 3% of each eligible employee's compensation. (which can be reduced to as low as 1% in any two out of five years). The amount, however, can't exceed $12,500 in tax year 2018. Option 2: Contribute 2% of each eligible employee's compensation. The amount, however, can't exceed $5,500 in tax year 2018.
For the 2018 tax year, overall employer plus employee contribution limit is 100% of compensation with a maximum of $55,000 ($61,000 if the employee is age 50 or older). For the 2018 tax year, the employer only contribution limit is 100% of compensation with a maximum of $55,000. Maximum tax-deductible employer contribution is 25% of compensation.
For the 2018 tax year, overall employer plus employee contribution limit is 100% of compensation with a maximum of $55,000 ($61,000 if the employee is age 50 or older). For the 2018 tax year, the employer only contribution limit is 100% of compensation with a maximum of $55,000. Maximum tax-deductible employer contribution is 25% of compensation.
Contribution options
Employer can decide whether or not to make contributions from year to year.
Employee can decide how much to contribute. Employer must make matching contributions, or must contribute 2% of each employee's salary up to the set maximum.
Business owner can contribute as employer and/or employee.
Employee can decide how much to contribute. Employer can make additional contributions, including matching contributions, as set by plan terms.
Funding responsibility
Generally, employer contributions only.
Employee salary reduction contributions and/or employer contributions.
Business owners can contribute as employer and/or employee.
Employee salary reduction contributions and/or employer contributions.
Employee eligibility & minimum coverage requirements
Generally, employees must be allowed to participate if they're 21 or older, earn at least $600 annually (limit for 2018), and have worked for the same employer in at least three of the past five years.
No age restrictions. Employees must have earned at least $5,000 during any two prior years (consecutive or nonconsecutive) and be expecting to earn at least $5,000 in the current year (you can also choose less restrictive requirements).
No common-law employees. Otherwise, no age or service restrictions.
Based on employer plan rules. Generally, must be offered to all employees at least 21 years of age who worked at least 1,000 hours in the previous year.
Employers who can provide this option
Any business that doesn't currently maintain any other retirement plan.
Any business with 100 or fewer employees that doesn't currently maintain any other retirement plan.
Sole proprietors or partners with no common-law employees.
Any business with one employee or more.
Advantages
Works well for business owners who prefer to provide a retirement benefit to all employees (including themselves) by making employer contributions.
Great starter plan that encourages contributions from employees.
Excellent method to maximize tax deferral. Can contribute as employer and employee.
Great option if you're looking to offer your employees all the tax, savings, and retirement benefits of a typical 401(k).

All investing is subject to risk, including the possible loss of the money you invest.

RETIREMENT PLAN SPONSOR FAQ

WHAT IS BENCHMARKING?


As a plan sponsor it is important to stay informed and make sure you are on the right path as a fiduciary. Knowing how your 401(k) plan matches up against your peers is an important part of your fiduciary diligence. Benchmarking is a self-assessment that reviews the structure and costs associated with your plan design.




SHOULD I BENCHMARK MY PLAN?


YES! As a plan sponsor, you should benchmark your 401(k) plan to give you clear understanding of its fees and costs. It is important to know that you are providing a sound and cost effective plan to participants. Being a trustee gives you fiduciary responsibility, and fiduciaries are liable if there is a breach of duty. By benchmarking your plan, you are reducing your liability, quantifying the fees you are paying, and determining if the fees are reasonable.




WHAT DOES BENCHMARKING COST?


Matisse Capital offers comprehensive plan evaluations for no charge or commitment. Our team provides plan sponsors with the tools and information to evaluate any compensation paid to plan service providers.




WHAT DO I NEED TO KNOW ABOUT "FEE DISCLOSURES"?


You should be aware of the U.S. Department of Labor’s regulations related to fee disclosures to participants in ERISA-governed retirement plans. These regulations are known as the 404(a)(5) disclosures. The 404(a)(5) disclosures and the transparency they require increase your employees’ ability to make informed investment decisions as participants in your retirement plan. Plan sponsors have nothing to fear as long as time is taken to review how plan fees are charged and what information your employees are receiving. The 404(a)(5) disclosures aim to expose unreasonable fees and eliminate conflicts of interest.

404(a)(5) – The total cost in dollars assessed to plan participants every quarter must be listed clearly on participants' quarterly account statements. Fees should be compared to other similar retirement plans to determine if they are fair.

408(b)(2) – Requires service providers to disclose and break out total plan costs to plan sponsors (including costs for record-keeping, administration, investment management, indirect compensation, shareholder-type, etc.).





LIMITED PLAN REVIEWS

A complimentary service provided by Matisse Capital, to highlight a few critical financial and fiduciary considerations.

Providing an assessment of:

Investment options benchmarked against peer group

Plan expenses compared to national benchmarks

TO GET STARTED

Please provide us with as many of the following documents as possible:

  • Summary Plan Description

  • List of investment options (including ticker symbols) and market values as of last quarter-end

  • Most recent Participant Annual Fee Disclosure

  • Investment Policy Statement (if the plan has one)

Please provide us with answers to the following questions:

  • Do you have any concerns with your current plan or providers?

  • Does your advisor sign off in writing as Co-fiduciary in your plan contract?

  • What would you want to improve about the plan?

  • What type of employee education is being done to encourage Retirement Readiness?

  • When did you last benchmark or review the plan?

Submit via email to info@matissecap.com

Any information you provide to our team will be held confidential and used for the sole purpose of providing you an accurate Limited Plan Review.


One of our retirement plan specialists will respond to your request promptly.