JULY Business Services has launched a Pooled Employer 401(k) Plan (PEP) designed specifically for small businesses, giving advisors an easy way to set up and serve more 401(k) clients.
Called Launch401k PEP, the new offering combines flexible plan design features, as well as investment management by Expand Financial. It also is supported by JULY’s proprietary technology to simplify plan setup and management, according to the Sept. 22 announcement.
“The JULY team is passionate about making retirement plans more affordable and simpler to operate for advisors and their small business clients,” notes JULY CEO John Humphrey. “Launch401k PEP leverages our 25 years of industry experience and our software development strength to help reduce the retirement coverage gap that exists among small business workers.”
JULY will serve as the Pooled Plan Provider (PPP) and take on 3(16) administrative fiduciary duties. In addition, three plan designs offer flexibility in addressing the tax and savings goals common to many small businesses, while remaining easy to set up and operate, the announcement further notes.
In its role as a 3(38) investment fiduciary, Expand will select, monitor and report on a core investment lineup. Advisors and their clients also have the option to select from a variety of target date funds, risk-based managed portfolios and participant-level managed accounts.
To reduce the administrative burden on participating employers, JULY has built specialized software to manage payroll files and participant notice delivery of both electronic and paper-based delivery of required plan communications. In early 2022, JULY will release an online 401(k) setup system for Launch401k PEP where advisors can quickly set up new 401(k) plans for their small business clients.
“Small business owners deserve more than a one-size-fits-all investment menu. Our approach combines a cost-efficient core line-up with choice in the managed component to give advisors and their clients real flexibility in tailoring a solution that fits,” notes Greg Bakke, CEO of Expand.
