Back to Training Videos

Creating a Custom Retirement Plan in TRAK-Online

 

Transcript

Hello and welcome to this brief tutorial on creating a custom retirement plan in TRAK-Online. TRAK-Online will permit you to create a custom retirement plan that can include employer matching, profit sharing, Safe Harbor, and many other features that you can then incorporate into an Employer File for using in the Paycheck calculator or the Batch Processes or for using in the Gap Analysis as the retirement plan for a client. In this tutorial we will be going over how to setup and configure a custom retirement plan.

When you get into TRAK-Online, you can find the Custom Retirement Plan setup under the Config menu, Custom Plans. As you can see, I don’t have any custom plans currently but to create a custom Defined Contribution plan that can be used in the Gap Analysis or incorporated into an Employer File we’ll simply start by clicking this “Add New Plan” button.

Over here on the right, I can name my plan, maybe we’ll call this one Joe’s Tool Shop, and then I can select what type of plan this is. The type of plan you select here will help determine what the contribution limits are. We’ll go with 401(k).

We have four tabs: Contribution Limits, Employer Contributions, Roth Account, and Config, for Configuration.

Under the Contribution Limits, you can decide whether you want to use the standard limits for this type of plan; in that case you would indicate “Yes”. Or “No” if you’d like to setup your own custom limits for this plan, you can do so by toggling to “No” and then setting up your own limits down below.

The Custom Retirement Plans will allow you to configure many different types of employer contributions. As you can see here on the left we have a number of options available for you to use. You can use any or all of them.

  • Percent Matching
  • Percent of Salary
  • Profit Sharing
  • Dollar Contribution
  • Conditional Matching, and
  • Contribution Tiers


Under Percent Matching, this is where you could setup an employer match. For example, if your employer matched 100% of the first 5% of the employee’s contribution you would set that up this way. If there was a maximum dollar per paycheck, you could also include that here.

If the employer contributes a percentage of salary, regardless of what the employee contributes, you can set that up here. For example, if the employer contributes 3% to all employees, you can set that up. If there are years of service required to qualify for this contribution, you can set that up in years of service to qualify.

If the plan includes profit sharing, you can set that up. Simply open up the profit sharing, under the “Method” you can select either a “Flat rate”, which will be for all employees and can include years of service to qualify and a maximum, or you can do it based on “Employee Class”. Selecting this will enable you to create different employee classes, such as partner, employee, and be able to setup what the profit sharing is for each class.

If the employer contributes a dollar amount to the employees, you can set that up here. Select the frequency of the contribution: is it “All Paychecks”, “Last Check of the Month”, “Quarter” or “Year” and setup the amount and years of service to qualify.

If there is conditional matching, you can set that up here. What’s the minimum employee contribution? And the employer contribution?

And then, if there is Tiered Matching, you can set that up here. The Method: is it based on Salary, Age, Years of Service, Tiered Matching, or Years of Service Percent Matching. If you’d like to setup an easy, instant Safe Harbor configuration you can do that up here on this button. Simply select it. We have options without automatic enrollment and options with auto-enrollment. Simply select the option that you want and you’ll notice, down under the Tiered Matching we now have this configuration which you can edit if you need to. You can also add additional tiers by clicking the green “Add Tier” button.

If your plan includes a Roth Account, you can turn that on on the Roth Account tab. Simply toggle to “Yes” and then specify whether the employer’s matching contribution also includes the contribution to the Roth. You can setup percent matching and contribution tiers as well under the Roth Account.

Under the Configuration tab you can specify whether there are years of service required to participate in the plan, whether the contributions are elective, are they mandatory and whether those contributions are pre-tax.

Once you’ve setup your plan, this plan can now be selected in an Employer File as well as the Gap Analysis. Let’s go take a look.

If I go over to my Employer File and open up one of these employers (I’ll just open up the 10 Pay Monthly), now, under my retirement plan, for my Qualified Plan Type, I can select Custom Plan. And here is Joe’s Tool Shop. Any other custom plans that I may have created would in this drop-down box for me to select.

You can also select custom retirement plans from within the Gap Analysis. Let’s go over to the Gap Analysis to take a look. On the Client tab, the Client’s Retirement Plan, under Category or State, I’ll select Custom Plans. Now, any Custom Plans that I select will be here in this Retirement Plan box. As you can see Joe’s Tool Shop is automatically selected because it’s the only custom plan that we have.

Custom plans can be useful for working in the Gap Analysis as well as including them in an Employer File, which is foundation for the Paycheck Analysis as well as the Batch Processing. Thank you for listening to this brief tutorial.

Are you on TRAK? Learn what top advisors already know by trying TRAK-Online today.
Try TRAK-Online