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FAQs
 
Why do so few small businesses offer a 401(k) plan to their employees?
 
401(k) plans are costly, time-intensive, and cumbersome. Traditional plan providers required the employer to manage all ongoing administration of the plan, and the paperwork alone made these plans not worthwhile for small business owners. Modern technology companies like Money Intelligence are making these plans affordable and easy to set up and use.
 
What are the reasons for small business owners to provide a 401(k) to their employees?
 
Offering a 401(k) plan to employees is a good idea to enhance employee satisfaction, recruiting, and retention. Employees also receive a significant tax break of up to $18,000 per year by contribution to a 401(k) plan.

While not mandatory in a 401(k) plan, employer contributions are deductible on the employer’s federal income tax return.

Through Money Intelligence’s 401(k), business owners can save for retirement to prepare for the future. Our proprietary technology is making the set-up of 401(k) plans much easier and more accessible at less than half the cost of typical insurance and payroll providers.
 
How soon can I set up a 401(k)?
 
Money Intelligence can onboard a company within 24 to 48 hours of completing the plan registration process. This compares to a 4-6 week onboarding process for other 401(k) providers.
 
What is the meaning of "Fiduciary Duty"?
 
Money Intelligence serves as a 3(21) or a 3(38) plan fiduciary to its clients and holds its fiduciary responsibilities to its companies and their employees in the highest confidence.

Fiduciary duty is the legal obligation for one party to act solely in the interest of the other. The party designated as the fiduciary owes the legal duty to a principal, and strict care is taken to ensure no conflict of interest arises between the fiduciary and the beneficiary.

Fiduciaries have the legal responsibilities to:

  • Act solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them
  • Carry out their duties prudently
  • Follow the plan documents (unless inconsistent with ERISA)
  • Diversify plan investments
  • Pay only reasonable plan expenses
 

The Department of Labor estimates that 90% of plan providers are not fiduciaries, and thus is currently reviewing a Fiduciary Rule to mandate that all retirement plan providers must be plan fiduciaries.
 
Do you offer any training?
 
Money Intelligence offers in person enrollment meetings, retirement webinars, and consultations with our financial advisory team.
 
What investment services do you provide?
 
We provide 3(21) and 3(38) fiduciary investment services to help companies and their employees select the investments offered by the company to its employees and help the employees determine the best investments for their personal financial situation.
 
Where is my money held?
 
Your assets are held at Matrix Trust, TD Ameritrade Trust, Charles Schwab or a comparable financial institution.
 
What are the costs for a 401(k) with Money Intelligence?
 
A 401(k) plan with Money Intelligence costs companies a flat $2,000 per year. See our fee disclosure for a complete list of fees.
 
What is the difference between an IRA and a 401(k)?
 
An IRA is an "Individual Retirement Account". IRA plans are available regardless of employment status, including to those who are unemployed or self-employed. Anyone below the age of 70 ½ who has earned income can contribute to a traditional IRA. The income cap of an IRA is much lower than a 401(k).

A 401(k) is a benefit that can only be offered through an employer, with automatic deductions set up to be taken from each paycheck. There is no income restriction for contribution to a 401(k), and they have more than 3x the contribution limit of an IRA. The contribution limits for an IRA and a 401(k) are provided below.

  Under the age of 50 Over the age of 50
Annual Limit for a 401(k)      $18,000/year     $24,000/year
Annual Limit for an IRA      $5,500/year     $6,500/year
 
What is the difference between a 403(b) and a 401(k)?
 
A 403(b) plan is similar to a 401(k), but is only available for nonprofit companies, religious groups, public school districts, and governmental organizations. The law allows these organizations to be exempt from certain administrative processes and costs that apply to 401(k) plans.
 
Is Money Intelligence a recordkeeper or administrator?
 
Money Intelligence is a registered investment advisor and offers third-party administration and recordkeeping services through a joint-venture with its partners.

Money Intelligence's third-party adminsitration partners have been in business for over 40 years, administer over 5,000 retirement plans, and seamlessly handle all of the recordkeeping and administration on behalf of Money Intelligence's clients. Money Intelligence uses Charles Schwab Retirement Technologies recordkeeping system for its clients.

Money Intelligence is known as a bundled provider and provides third-party administration, recordkeeping, and advisory services to its clients.
 
If I had an IRA or 401(k) with my previous employer, can I transfer my plan over through Money Intelligence?
 
Yes, if you are a past employee of a company with an existing 401(k) or an IRA, you can easily transfer over your plan through Money Intelligence.
 
I'm an individual. Can I use Money Intelligence's services?
 
As an individual, you can sign up for Money Intelligence's full suite of services for 0.50% per year of the investments you want Money Intelligence to manage. You will get access to Money Intelligence's comprehensive savings, retirement, lifestyle goals, and investment advice.
 
Is my personal information kept private?
 
Money Intelligence will not sell, reveal, or share any of your personal information, except as required or permitted by law or with your prior consent.
 
Why don't you display reviews of testimonials?
 
As a registered investment advisor, Money Intelligence is prohibited from posting on its website a client's positive review or favorable statement (a "testimonial") or even from linking to such a testimonial if one of our clients posts such an endorsement on another site. We are careful to comply with the regulations regarding this restriction, which is why you will not find a public section on our website asking for client feedback. You are always free to email us privately at contact@moneyintel.com
 
What is the difference between a ROTH vs Pre-Tax 401(k) portfolio?
 
The Money Intelligence platform allows you the flexibility to contribute to both a ROTH and Pre-Tax 401(k) portfolio. Based on your personal and risk profile, Money Intelligence will recommend whether you should contribute to either a Roth or Pre-Tax to maximize your retirement benefits.

A ROTH portfolio will not grant you any tax breaks today, but all future earnings and interest growth will remain tax free upon withdrawal. A Roth portfolio is a great option for employees who have a longer time horizon until retirement or are in a low tax-bracket today.

A Pre-Tax (Traditional) portfolio allows you to defer pre-tax income from your salary. Contributions into your Pre-Tax portfolio will not count toward your wages and will reduce your taxable income. Upon retirement, withdrawals (including earnings) will count as taxable income.
 
Will I be able to choose which mutual funds my money is invested in?
 
Money Intelligence provides fiduciary investment advice to help clients select and monitor the investment fund lineup offered to its employees. From over 8,000 funds available on Money Intelligence’s platform, Money Intelligence will help companies select between 20-30 investments to offer.

Money Intelligence also provides investment advice through its award-winning 401(k) platform to employees, who have the option of speaking to a Financial Advisor on the Money Intelligence team. Money Intelligence helps employees select a diversified portfolio personalized to their risk tolerance and financial situation.
 
 
 
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