Frequently Asked Questions
What is the CalSavers mandate?
The state of California has already mandated that any business that employs 5 or more eligible employees must have a retirement plan in place. By the end of next year, that will change to 1 or more eligible employees beyond the CEO. If you are unable to sponsor a plan, you will be required to participate in CalSavers or face fines.
CalSavers, formerly Secure Choice, is the state-operated retirement savings plan. Compared to other retirement plans, CalSavers offers fewer investment options and the maximum amount that employees can contribute per year is far less. CalSavers is a Roth IRA, which means it has income limits. Employees don't receive a tax benefit for their savings in the year they make contributions, and there is no employer matching or profit sharing. Additionally, employees may also be charged investment fees and state and administrative fees. We wanted to find a way to offer our members a more beneficial and less complicated solution, and that is why we have established this plan.
CalSavers, formerly Secure Choice, is the state-operated retirement savings plan. Compared to other retirement plans, CalSavers offers fewer investment options and the maximum amount that employees can contribute per year is far less. CalSavers is a Roth IRA, which means it has income limits. Employees don't receive a tax benefit for their savings in the year they make contributions, and there is no employer matching or profit sharing. Additionally, employees may also be charged investment fees and state and administrative fees. We wanted to find a way to offer our members a more beneficial and less complicated solution, and that is why we have established this plan.
Why choose the WVCBA group plan?
The CalSavers mandate means retirement plans have become a necessary aspect of doing business in this state and we wanted to provide our members with a truly beneficial solution. As a chamber of commerce, we are able to offer a plan that is more time and cost effective than what individual businesses can access. Because it is a group solution, the administrative burden is consolidated while the benefits are collectively shared. In short, it will save you time, money, and hassle, while leveraging the experience of vetted experts who are on hand to guide you through a more streamlined process than you will find with other plans.
How is this possible? SECURE 2.0 Act established a plan type called Group of Plans (GoPs), also known as Defined Contribution Groups (DCGs). GoPs allow several employers, each with their own defined contribution plan, to file a single Form 5500 if they have the same trustee, named fiduciary, administrator, plan year, and investment options.
How is this possible? SECURE 2.0 Act established a plan type called Group of Plans (GoPs), also known as Defined Contribution Groups (DCGs). GoPs allow several employers, each with their own defined contribution plan, to file a single Form 5500 if they have the same trustee, named fiduciary, administrator, plan year, and investment options.
When can I sign up?
You can sign up at any time; there is no enrolment period. However, please check out the section above on the CalSavers mandate to make sure you are meeting the state required deadlines for your business.
Who can participate?
Any West Ventura County Business Alliance member can join the group plan. In addition to the many other benefits of being a member, the savings incurred from this plan outweigh the cost of membership. If you have no plan but need one or if you have an existing plan, including CalSavers, but want to save time, money, and administrative hassle, this is the plan for you. You can transfer existing plans or start a brand new one. Get Started below to find out more and get your questions answered by the experts.
What is a Form 5500?
Each year, pension and welfare benefit plans are required to file an annual report regarding their financial condition, investments, and operations. This annual reporting requirement is generally satisfied by filing the Form 5500. For a single employer plan, outside of a Group of Plans (GoPs), your business will need to pay to handle this filing. These costs can potentially be several hundred dollars or more per year for a plan sponsor.
By joining the WVCBA 401(k) Plan, you will no longer need to complete Form 5500. Vestwell files one Form 5500 that captures all of the plan members. If your business is subject to an audit for Form 5500 purposes, it may have to bear only a fraction of the expense, if any at all. Furthermore, you will have access to experts who can help you with this audit.
By joining the WVCBA 401(k) Plan, you will no longer need to complete Form 5500. Vestwell files one Form 5500 that captures all of the plan members. If your business is subject to an audit for Form 5500 purposes, it may have to bear only a fraction of the expense, if any at all. Furthermore, you will have access to experts who can help you with this audit.
Why intellicents and Vestwell?
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