fb-pixel
Select Page

Improving financial health with 401(a) Plans

Our low-fee, high-quality financial solutions make it easy for employees and employers to make retirement a success. TCG is the partner you need at your side to guide you through the journey.

About 401(a) Plans

A 401(a) is a retirement savings plan that allows accumulation of tax-advantaged funds for retirement with contributions coming from the employer, the employee or both. For governmental plans, employees cannot contribute unless the contributions are subject to an irrevocable requirement to contribute as a condition of employment.

An employer will make contributions on the employees’ behalf to a 401(a) account established for each participating employee. The employer’s contributions to an employee’s account are based on a certain formula. This may include a match of the employee’s own contributions to the employer’s 457 or 403(b) plan, (401(k) for non-governmental employers), or in some cases, the employee’s contribution to the 401(a) plan (usually only for city and county governments if the employee contribution is mandatory).

The employer’s plan can also be established with a formula that offers employer contributions based on other criteria established by the employer within the design features available. Examples of incentive based contributions for governmental plans include longevity, attendance, campus based goals (for school districts), health/welfare goals and many others.

Solutions for Plan Sponsors

As a retirement plan provider, we can help establish and/or manage your organization’s 401(a) retention plan—focusing on delivering a seamless experience for you and your employees.

Third Party Administration

From secure online payroll data transfer platforms to daily processing of distributions, we strive to provide you and your employees a superb experience. We deliver:

  • Record-keeping and participant reporting
  • Plan compliance and legal support
  • Transparent fee structures
  • US-based customer service call center

Fiduciary Oversight

As the plan investment advisor, TCG adds a level of protection for your employees in helping determine the investment options provided to them. Our Investment Committee continuously reviews portfolio performance to ensure only the best plans are offered to your staff.

Participant Education

We provide comprehensive financial educational resources for plan participants as well as on-site seminars and live support from financial professionals.

Advanced Technology

We employ advanced technology to ensure you can easily transfer your payroll files and access all necessary employee reports. With our website management tools, you can:

  • Enroll participants online
  • Securely process transactions
  • Generate reports
  • Upload payroll files

Additional Plan Details & FAQ

Is there an enrollment process?

Participants are automatically enrolled in the program if they meet the eligibility criteria in the plan. No individual enrollment paperwork is necessary unless the employee is allowed to contribute to the plan.

How much does an employer contribute to an employee’s account?

Contribution rates and formulas vary with each employer. 401(a) plans allow employers to make a direct contributions on either a fixed dollar or a percentage of salary basis. They also allow for match contributions of employee contributions based on a dollar ratio basis or as a percentage. Additional contributions may be made for certain plan participants if they meet other criteria.

What are the 401(a) benefits?

Most of the 401(a) plans TCG manages are a “defined contribution” plan or an “individual account plan” that provides for an individual account for each participant and benefits are based solely on the amount contributed to a participant’s account plus any investment earnings (and may include forfeitures of accounts of other non-vested participants, if the employer elects to include this provision in the Plan). A 401(a) plan can also be a “defined benefit” plan that guarantees a lifetime income to the plan participants.

Can TCG manage my organization's existing 401(a) Plan?

Absolutely. We look forward to the opportunity to show you how we’re different from our competitors and how employing us as your plan administrator is the best move for your staff. Please send us a message and we’ll talk more.

 

Helpful Resources

Investing at Every Age

Investing at Every Age

How to Invest at Every Age Investing is often seen as a tool reserved for the financially savvy or the wealthy elite. However, the truth is that...

read more