Forget what you’ve been told in the past about retirement plans. Today, company decision makers are opting out of running their own retirement plans. Instead, business owners are increasingly concerned about how to keep the administrative costs of their retirement plans under control while also complying with their fiduciary responsibilities. A MEP may be an ideal situation.
With a Multiple Employer Plan (MEP), employers no longer have to sponsor a retirement plan for their employees. Instead, they simply adopt into a MEP as an “adopting/participating employer.” Employers enjoy all the benefits of a professionally run retirement plan while outsourcing many administration tasks and fiduciary duties.
MEP's have been around since the 1950's and continue to remain tax qualified retirement plans under the Internal Revenue Code Section 413(c).Thousands of unrelated employers join a MEP to reduce the cost and time associated with managing their plan. In fact, today there are over 4,000 successfully run MEP's in the U.S. with thousands of adopting employers and millions of participants.
What are some of the benefits for the owner of a small business in joining a MEP?