The IDA has recently started working with Jon Heim and Derek Hertges to provide a multiple employer aggregation program (MEAP) 401(k) plan from Transamerica for IDA members.

Is a 401(k) Plan right for Your Small Business?

If you currently have a SIMPLE IRA for your business, you’re likely familiar with some of its limitations, such as, no Roth or loan option and significantly lower contribution limits than many other types of retirement plans. As part of our relationship with Jon Heim and Derek Hertges, you have access to an exclusive multiple employer aggregation program (MEAP) 401(k) plan from Transamerica. This MEAP offers employers reduced costs, fiduciary liability protection and potential cost savings all while offering employees a great benefit.

Key Advantages for Participating Employers

As a participating employer, the program brings together a professional service team to help manage the retirement plan so you can focus on doing what you do best, managing your business. This team handles most of the administrative tasks, the selection and monitoring of investments, and recordkeeping responsibilities. Key advantages include:

• Administrative relief
• Reduced fiduciary oversight and risk
• Ease of joining and managing your plan
• Potentially lower costs
• Potential tax credits for small businesses

Key Employee Benefits Include:

Education: Your employees will receive a participant experience designed to educate and engage at every stage of their career.

Online Access: Self-service digital tools and resources, including online enrollment and online account access, to help your employees achieve their retirement savings goals. 

Dedicated Service Team: Jon and Derek will open a direct line of contact with your participating employees to provide a personalized experience for your participants.

Your Timeline: Switch from a 2024 SIMPLE IRA to an 401(k)

• Step 1 (by Mid-October): Connect with Jon Heim (Heim.Jon@Principal.com) or Derek Hertges (Hertges.Derek@principal.com) to get the process started.
• Step 2 (by November 1): Notify your employees that you’ll discontinue the SIMPLE IRA and provide them with access to a 401(k) plan, effective January 1. We will help with all employee communications!
• Step 3 (mid-November): Notify your SIMPLE IRA provider and payroll provider that you will be terminating the SIMPLE IRA as of December 31, 2023. We will facilitate communications between you and your SIMPLE IRA provider on your behalf.

To learn more about this 401(k) savings plan and if it might be right for your practice, visit our website or contact Derek Hertges at 515-878-0823 or Hertges.Derek@principal.com. 

Jon Heim and Derek Hertges are Principal Securities, Inc. Registered Representatives. Principal Securities is a member of the Principal Financial Group® Des Moines, IA 50392. Transamerica is not an affiliate of any company of the Principal Financial Group®. The decision to participate in the MEAP is the fiduciary responsibility of the adopting employer. Before adopting any plan you should carefully consider all of the benefits, risks, and costs associated with a plan. Information regarding retirement plans is general and is not intended as legal or tax advice. Retirement plans are complex, and the federal and state laws or regulations on which they are based vary for each type of plan and are subject to change. In addition, some products, investment vehicles, and services may not be available or appropriate in all workplace retirement plans. Plan sponsors and plan administrators may wish to seek the advice of legal counsel or a tax professional to address their specific situations. 3052856-082023