Frequently Asked Questions
Fees
How much does OctaveWealth charge for its services?
Is there an additional cost for employing OctaveWealth as the Investment Manager for my plan?
Are there any additional charges passed onto employees?
What about management fees, trading commissions and custodial fees?
How is this different to other 401(k) plans?
When does OctaveWealth charge its fee?
Are these costs tax deductible?
What is the IRS tax credit for new plans?
Strength and Security
How does OctaveWealth protect the assets in my company’s account?
What is SIPC insurance?
What would happen if OctaveWealth were to be acquired or cease doing business?
Is OctaveWealth insured?
What is ERISA?
What is an ERISA bond?
What is Fiduciary Liability Insurance?
401(k) questions from employers
What is a 401(k)?
Why should I provide a 401(k)?
What does setting up a new plan involve?
How does OctaveWealth help me with on-going administration?
Do I have to match employee contributions?
Can we choose to pause the company match if we’re having a bad year?
What happens to the company match for employees who leave?
Why shouldn’t I just use one of the current big 401(k) providers?
I don’t have any employees; can I still open a 401(k)?
What happens if I need to shut the plan down?
What happens when an employee leaves?
What happens if my company is acquired or ceases to do business?
Legal questions from employers
What are my legal responsibilities?
Who is a Fiduciary?
What are my duties as a Fiduciary?
How does OctaveWealth help me fulfill my legal responsibilities?
Why should I elect to make OctaveWealth the Investment Manager for my plan?
What is ERISA 404(c) Safe Harbor?
What rules must my plan abide by to qualify for protections under 404(c)?
Will an OctaveWealth 401(k)s protect me under 404(c)?
What are annual non-discrimination tests?
What is a top-heavy plan?
401(k) questions from employees
I’m young, so I don’t need to worry just yet?
I’m wealthy, so I don’t need to worry.
I don’t need a 401(k), I have other ways to fund my retirement?
What if I need the money before I retire?
What happens if my employer is acquired or ceases to do business?
Where are my investments held?
OctaveWealth Target-Risk investment models
What are the OctaveWealth Target-Risk investment models?
Do you charge a management fee for use of your Target-Risk investment models?
Are these models managed?
Why don’t you display reviews or testimonials about your investment performance?
DISCLAIMER
These FAQs were prepared to support the marketing of OctaveWealth’s 401(k) administration and investment management services. The content is intended as a guide and not as specific tax advice, for which you are advised to consult your tax advisor.
All content is subject to change. Whilst the information is believed to be accurate and reliable, Quillu Inc. specifically disclaim all warranties, express, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein.
Footnotes
-
$100,000 cost of compounding employee-fees is based on: 0.25% management fee; 7% rate of return for plan investments; $18,000 annual contribution and a 30 year horizon. This is a conservative estimate; it assumes the lowest management fee in the industry and does not increase plan contributions in line with inflation. ↩ ↩2