Solid Steps to Knowing if a 401(k) is Right for Your Business

Transcription

1 Solid Steps to Knowing if a 401(k) is Right for Your Business

2 SOLID TACKLES COMPLEXITY WITH EASE We understand that for many business owners, the subject of 401(k) plans immediately evokes images of daunting regulations, hours of administrative tasks, and fears of knowing what are the right things to do for your employees as a fiduciary. Add in the current economic challenges of trying to balance revenue and expense pressures against the desire to help your employees save for their futures, and the decision of whether or not to start (or even to keep) a 401(k) plan can seem overwhelming. At SunTrust, we re here to help. Since your business can represent a significant funding source for your own retirement, and since your employees (even if that s only you!) are one of your business most critical assets, offering a retirement plan can be an important factor in your company s future - and in your employees futures as well. That s why we ve created a simple way to tackle this important decision, with an easy-to-follow outline of solid steps you can take to know if a 401(k) is right for you. STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Understand the perspective of your current and future employees Know the costs of having a plan and of not having one Compare plan types Consider plans designed specifically for smaller business owners Seek insight from experts 1

3 STEP 1 Understand the perspective of your current and future employees When business owners decide to offer a retirement plan, their decision is often driven in part by a desire, or believed obligation, to help their employees. Yet, with many different plans available with distinct characteristics in how they operate for employees, employee satisfaction and engagement may differ based on the type of retirement plan you choose. Understanding your employees expectations for an employer-sponsored retirement plan, how they feel about 401(k) plans in particular, and what kind of features are important to them, will help you determine if your investment in a 401(k) plan is worthwhile. Source: 61% 61% 29% of business owners across the nation stated they felt it was actually their responsibility as an employer to offer their employees a retirement plan. 1 of employees view their company s retirement plan as their primary retirement savings vehicle 2 of employees would not save for retirement without an employer plan 2 1 SunTrust survey of 1000 business owners, conducted by Strategy One in January Watson Wyatt survey of 2200 full time workers, February Another key reason to make sure you understand what your employees think is that with a 401(k) plan, employee participation is the number one factor in the ability of your plan to deliver its intended benefits for both your company and your employees. Making sure this type of plan appeals to them is therefore even more important. Here are a few ideas on how you can get insight into your employees viewpoint: 1. Find out about general employee opinions & trends Learning about the broader mindset of employees in general regarding employer-sponsored plans, and particularly 401(k) plans, can give you a good starting point when thinking about the value of offering a plan. Trends in employee perspectives are important factors in determining the benefit of a particular plan when competing for talent, as well as the loyalty value you may get from offering a plan. There are a couple convenient ways to get this information: Check online: There are several good online sources for information and research on employee perspectives, behaviors and preferences when it comes to employersponsored retirement plans. There is no shortage of content out there, but we ve listed below a few respected websites and publications that can be good reference sources: Employee Benefits Research Institute s Retirement Confidence Survey. U.S. Department of Labor s Bureau of Labor Statistics Perspectives on Retirement Benefits. 2

4 Profit Sharing Council of America Defined Contributions Insights magazine. Society for Human Resource Management s Workplace Visions. Wanting it all 401(k) plans have been very popular with employers and employees, due in part to the control and choice employees have with these plans. The recent economic and market downturns, however, have led to a renewed preference for the security of a guaranteed payment that is typically associated with a defined benefit plan. 1 Workers seem to want to have their cake and eat it too, though, since the same survey shows that they still prefer being able to make their own investment decisions and take risks in the hopes of getting greater returns. 1 Not to mention that they still also want to be able to take their plan with them if they leave (known as portability), which isn t necessarily an option with defined benefit plans. The good news? New investment vehicles becoming available on some 401(k) platforms may enable you to give them everything they seek. Look for providers who already have, or are planning to add, guaranteed income options to their 401(k) investment offering. These investment vehicles offer a defined, guaranteed payment, often with upside potential as well, while retaining employee choice and plan portability. There are also other studies published by research firms, industry associations and retirement plan providers from time to time. You can find those using search engines, such as Google, or on industry news feeds such as those you find on and Plan Sponsor s NewsDash . Consult an industry professional: Talking with an experienced 401(k) plan provider that has a strong program of employee education can also provide you with valuable insight into common employee preferences and behavior drivers. They typically have experience working with a wide array of employees within companies that offer 401(k) plans, and can share information on what current mindsets are, along with trends. Since they often support a variety of different organizations both large and small they may also be able to share specifics related to your size of company or industry as well. A brief meeting with an experienced provider can give you a lot of information for only a small time investment. 2. Ask your current employees what they think Things you ll want to consider from an employee perspective include: How reliant they are on having an employer plan fund their retirement. The average age of your workforce and of those you expect to need to recruit in the future. How familiar and comfortable they are with various types of plans. How educated and engaged they are in financial and retirement plannin. How important being able to save on a tax-deferred basis is to them. 1 Source: Watson Wyatt survey of 2200 full time workers, February

5 70% 75% of business owners are counting on either the sale of their business to fund their retirement of business owners are counting on savings derived from a company retirement plan to fund their retirement Source: 2008 survey of 530 business owners conducted by SunTrust and the Boomer Project. Which features and elements are most important to them for their retirement planning, such as: Personal control over the amount that is contributed Having a defined payment that they will receive in retirement Ability to make their own decisions on investments and the amount of risk taken for return potential Ability to change the amount that is contributed or retained in the plan based on their current financial situation Having their employer fund their benefits instead of contributing themselves Being able to take their retirement plan with them if they change jobs If you have a significant number of employees, you may want to consider putting out a quick survey for them to complete, which is not only convenient, but can also provide them with some comfort in being able to respond with anonymity. If you have a relatively small number of employees, you may be able to, or prefer to, have more informal individual or small group conversations about this topic. However, it s best to use an interview worksheet that has defined questions, to ensure the same questions are asked consistently across all employees without bias. We ve created a worksheet with a few sample questions you may want to consider asking that you ll find at the end of this guide. 3. Factor in your own needs and perspective as well As a business owner, a company-sponsored retirement plan not only serves the needs of your business, but can also be an important component of your own personal retirement planning for two reasons. Your business value: You may likely be looking to your business overall value as a primary funding source for your retirement. Thus, investing in benefits that can help attract key talent to grow your business can be an important facet of increasing and preserving the value of your business as your primary retirement asset. Look for retirement plans and benefit packages that are attractive from an employee perspective to help accomplish this. 4

6 Your personal savings: As an employee of your own company, a company-sponsored retirement plan can serve as a retirement savings vehicle for you, as well. Being part of an employee plan can play an important role in helping you diversify your retirement savings through investments other than just your business. Plus, in addition to being able to save personally through contributions to the plan, you can receive tax benefits for: Starting up a 401(k) plan Making contributions from your business to the plan Personal savings you elect to contribute as a participant in your company s plan Tax Saver s Credit if you fall within the definition of low- to moderate-income earner All company plans offer some tax advantages for contributions (employee, employer or both), but they are not equal. Defined benefit plans typically allow for the largest contributions, but are typically more expensive and harder to maintain than other kinds of plans geared for smaller businesses. 401(k) plans tend to be more affordable than defined benefit plans and can offer key advantages over SIMPLE and SEP plans in terms of the amount of your earnings that you may be able to shelter from taxes especially if you are 50 or older. Here are some figures to consider: With a 401(k), from a business tax perspective, the contributions made by your company up to 25% of all participants total compensation are also tax deductible on top of your personal contributions as a participant in the plan (provided certain criteria are met). This can result in more of your total earnings from business and personal salary being eligible for tax shelter through a 401(k) than through other types of plans especially personal retirement plans outside of your business, which can not receive direct tax-deducted contributions from your business. Eligible pay you receive Tax deductible contributions Maximum if less than Maximum if 50 years 50 years of age 1 of age or older 1 Personal contribution $16,500 $22,000 $75,000 25% Company contribution $18,750 $18,750 1 Maximums shown are for the 2009 and 2010 tax years. 2 Total maximum allowed contributions to a participant s account from all sources can not exceed the lesser of 100% of their compensation or $49,000 if under 50, and $54,500 if 50 or older. $125,000 $175,000 TOTAL $35,250 $40,750 Personal contribution $16,500 $22,000 25% Company contribution $31,250 $31,250 TOTAL $47,750 $51,250 Personal contribution $16,500 $22,000 25% Company contribution $32,500 2 $32,500 2 TOTAL $49,000 2 $54,500 2 To best determine what is appropriate for your personal retirement planning and tax situation, consult both your accountant and an experienced financial advisor, such as our SunTrust Investment Services retirement specialists. Just call to get connected to one of our SunTrust Investment Services professionals who can provide you with a personalized consultation. 5

7 STEP 2 Know the costs of having a plan and of not having one 1. Understand the types of costs involved When looking at the costs of a retirement plan, there are generally four expense categories to consider: Plan fees Investment fees Participant costs Support costs Direct fees billed through your administrator. These fees are normally charged in one or more of the following ways: Asset-based: charged as a percentage of your plan s asset value. Transaction-based: charged for execution of certain types of transactions or services. Per person: charges that are multiplied by the number of your eligible employees or the number of your participants. Flat: charged as a flat amount regardless of your plan s asset or participant size. The expense ratios of the funds in your plan. Note that there are differences in these fees based on share classes, with institutional shares generally being the least expensive. Costs passed on to your participants. Includes costs outside of your plan, such as your plan support staffing costs and fees charged by external benefit consultants or plan advisors. A worksheet that may help you outline the first three categories of costs is the Department of Labor s 401(k) plan fee disclosure worksheet, which is available online at It can seem a bit overwhelming at first glance, but for less complicated plans such as those designed for smaller businesses, many fields may not apply. Therefore, it may not be as difficult to complete and use as it first appears. 2. Outline and compare the costs of plans you are considering Start with overt plan fees These are typically the most clearly stated and easiest to define. Tally the fees you ll need to pay out of your business for things such as set-up charges and ongoing recordkeeping and administration fees that will be billed by the provider. 6

8 Next determine the investment expenses Investment fees are factored into the yield of the investments, making them more difficult to quantify without the help of a retirement plan professional. These are generally assessed as a percentage of the assets in the plan, and are already deducted from the net investment returns your plan participants see. More information about the different types of investment fees commonly charged can be found on the Department of Labor s website. Your best bet is to ask the plan provider to help you identify and outline these costs. Keep in mind that funds bearing the same name may not bear the same fees, since it depends on the share class used. Be sure to ask the provider for the type of share class they offer and the specific expense ratio (percentage) for sales and management fees associated with those shares. Evaluate your participant costs These costs are also factored into investment returns and can be charged as a flat rate across all participants, or scaled based on size of account or contributions to the plan. A retirement plan professional is the best source to help you evaluate these. If you are concerned about the plan costs that are allocated to your participants, one way to control those is to ensure you do not choose (or have) a plan that is over-featured for your needs. 401(k) plans can come with a broad array of features that either carry associated per-service fees, or are factored into the overall plan administration fees. If you or your employees do not need or use these features, you could end up paying for something that isn t delivering any value. Seeking out plans that are designed specifically with the needs of smaller employers in mind may help you avoid this problem. Consider contribution requirements In terms of other cash outlays, you ll also want to consider the amount of contributions you are either required to make, or intend to make, as part of your plan. For certain types of plans, contributions can be mandatory, which can present challenges in times of decreased business revenues or added cost pressures. For traditional 401(k) plans, since employees are the primary contributors to the plan, mandatory employer contributions only come into play if you choose to set up your plan under the safe harbor election, or if you choose not to have a safe harbor plan and then fail antidiscrimination tests. Matching contributions are an optional feature and can be added, adjusted, or removed, by amending your plan documents, meaning you can offer a 401(k) plan without having a match. You ll just need to consider the effect that may have on your employees participation and perceived value of the plan. 7

9 Confused by retirement plan fees and how to compare them? We have retirement plan professionals who can help! Consult our personal retirement specialists at SunTrust Investment Services (STIS) at Talk with our small business retirement plan professionals at Finally, identify the indirect implementation and maintenance costs: These relate to resources outside of the plan that you ll need to purchase, engage or employ in order to set up and administer the plan. The good news is that with the invention of streamlined and simplified online retirement solutions, such as online 401(k) plans, you typically don t need to incur any of these costs. However, as you compare plans and their cost requirements, you should consider if you will need any of the following: New full- or part-time employees to help support your plan Additions or upgrades to technology systems Engagement of legal counsel for plan set-up or review Engagement of an actuary (needed for defined benefit plans) 3. Examine the value you expect to receive for your investment 401(k) plans are the nation s dominant type of workplace retirement savings plan. 1 As of the end of 2008, 92 million American workers participated in an employer-sponsored defined contribution plan, with 73 million of those participating in employer- sponsored 401(k) plans. 2 With its prevalence and popularity, many employees have grown accustomed to the choice afforded to them through a 401(k) plan and specifically look for that type of plan when they select employers. Source: 1 Cerulli Associate. 2 R.G. Wuelfing & Associates, Retirement Market in Focus report for year-end To make your investment in a retirement plan worthwhile, you need to feel confident that you ll be getting good value for the money. The cheapest plan may sound compelling, but it may not necessarily be the best one to help you accomplish your objectives. There are three key categories of value to consider, some of which align with aspects discussed earlier in this guide. These include: Ability to attract and retain employees Value for your personal retirement plan Tax advantages for you and your business 4. Consider what it may cost you NOT to have a plan Your ability to compete for and retain talent Think through your short and long-term staffing objectives and how you plan to compete for talent. Although current unemployment rates are near 10%, retention of existing key talent continues to be important in today s environment, since many companies look for top producers to help them do more with less. Additionally, recruitment of new talent for critical roles continues to occur, as companies trying to adapt and grow in a new economic environment seek to upgrade or add new skill sets to their staff. As the economy recovers, competition for talent will begin to ramp back up as well. Being aware of the prevalence of retirement plan benefits in your area, and of what kind of benefits are important to your target workforce, can help you determine the role a retirement plan may play in your recruiting and retention efforts. 8

10 Despite economic and financial pressures, recent surveys indicate that the majority of both employees and employers are continuing to invest in 401(k) plans. Source: 62% 83% 73% of companies report that their employees 401(k) contributions are steady or growing 1 of companies had not reduced their company match contributions in the past year 1 of companies did not plan to reduce their match contributions before the end of Deloitte, IFEBP and ISCEBS 401(k) Benchmarking Survey, 2009 edition. 2 Mercer Leading Through Unprecedented Times global survey update, May Some sources of market data that provide information on retirement plan trends amongst various businesses and their workers include: The Bureau of Labor Statistics annual survey on retirement perspectives. The Society for Human Resource Management s workplace trends report. Additional tax expense Without a company retirement plan, you could be missing opportunities for additional tax savings that in essence enable you to save more for less. In addition to the tax-deferred status of personal contributions, and tax deductibility of employer contributions,* there is also currently an annual tax credit of up to $500 per year available for each the first three years to any business that starts a new employer-sponsored plan. *Subject to IRS limits which vary by plan type and other factors. Opportunity and growth costs of delayed retirement savings Experts estimate that the average person will need between 70 to 90 percent of their pre-retirement income per year after they stop working, in order to maintain the same standard of living. 1 Some recent studies have suggested that even this may not be enough, given the cost of healthcare and the fact that people are living longer in retirement. Starting as early as possible for both you and your employees is typically the most critical factor in being able to reach these levels as well as your personal retirement goals. To find out the impact delaying a start can make, test different lengths of saving by entering different age start dates in our retirement planning calculator, found at 1 U.S. Department of Labor, Choosing a Retirement Plan for Your Business, October

11 STEP 3 Compare plan types 1. Know what types of plans are available There are several different types of plans available for smaller businesses. They function in different ways with characteristics that vary in appeal, depending on your primary selection criteria. The various kinds of plans include: Individual Retirement Accounts (IRAs) Payroll Deduction IRA Simplified Employee Pension (SEP) SIMPLE IRA Defined Benefit Plans Defined Contribution Plans Profit sharing Money purchase 401(k) Traditional 401(k) Safe Harbor 401(k) SIMPLE 401(k) 2. Understand plan differences across key categories Fortunately, there are several helpful online resources available that provide side by side detail of key characteristics across plans. Here are a few good sites to review: Department of Labor s guide IRS Retirement Plans navigator 401k Help Center comparison chart Some sites that provide additional detail to help you evaluate the different types of 401(k) plans include: Department of Labor 401(k) page IRS 401(k) page 10

12 In addition, to help you with your comparison, we have created a quick snapshot of some of the pros and cons for three popular types of plans used by smaller businesses: OPTIONS PROS CONS Simplified Employee Pensions (SEP) Savings Incentive Match Plan (SIMPLE) Traditional 401(k) Plan Defined Benefit Plan Easy to set-up and maintain No mandatory contributions No discrimination testing No annual tax filings Easy to set up and maintain No discrimination testing No annual tax filings Flexibility in plan design Vesting schedule for employer contributions No mandatory contributions Access to institutional level investments Optional ROTH and catch-up contributions available Increased contribution levels Flexibility in plan design Vesting schedule available Typically allows for largest contribution for older and highest paid employees Limitations on when benefit is paid Must include all employees Same contributions for all employees 100% employer funded and 100% employee owned Employer cannot offer other qualified retirement plans No ROTH or catch-up provisions Must include all employees Low elective deferral rates Mandatory employer contributions Employer contributions are immediately 100% vested Employer cannot offer other qualified retirement plans Annual tax filings Annual administrative fees Annual discrimination tests Annual tax filings Annual administrative fees Annual discrimination tests Must engage an actuary 3. Factor in your anticipated future needs As you look at your options, don t forget to consider where you expect your business to be in the not-too-distant future, so that you don t end up in a plan that isn t a good fit for where you expect your company to be. As you look at different retirement plans, factor in your expectations for growth and expansion, and the workforce you think you ll need to support those. Then test the impact of employee growth scenarios on the cost categories and contribution demands of the plans you are considering. You may find that some plans become more efficient than others as employee numbers go up, and others may become more costly to maintain from a cash outlay perspective. Knowing how the plans you are considering would scale with growth can be an important factor, since switching plans is not always easy. 11

13 STEP 4 Consider plans designed specifically for smaller business owners 1. Explore plans that are intended to work with your schedule and support constraints SunTrust offers an Online 401(k) solution that works together with SunTrust Online Payroll to help you streamline contribution processing. SunTrust Online Payroll also is integrated with our Online Cash Manager solution to make administration of all of your deposit accounts easier. Our Online Cash Manager solution ties to financial software, which can then help make better use of the other financial and accounting tools you use in your business. 401(k) plans have historically carried with them a stigma of being difficult to administer. Even with their evolution over the years to become easier and more efficient, their original design and focus on meeting the needs of larger employers has meant they were fairly intensive and expensive to administer, including requiring staff to support them during business hours. With the growth in the appeal of 401(k) plans to all kinds of workers and employers, coupled with advances in technology, several providers have developed more cost- and time- efficient online 401(k) solutions geared specifically toward smaller businesses. Today, with these plans, it is much easier to set up and manage a 401(k) without added staff and at a time that works for your schedule often 24 hours a day, 7 days a week. 2. Look for integration between systems that can streamline tasks Until recently, smaller businesses had to assemble all of the systems involved in retirement and payroll contribution processing from a variety of places. Often, a number of players had to be involved, including payroll services providers, 401(k) custodians or recordkeeping services, and banks. Today, it is possible to get payroll, retirement and deposit management solutions that work together to share files and online access from one provider. Getting solutions and systems that work together from the same place can make it simpler and easier for you or your staff to perform these tasks. 3. Focus on plans that offer the most relevant features, choice and service for your money Often times it can be easy to become overwhelmed by all of the different features and facets of the many retirement plans available today. You may find yourself asking: Is it best to just go for the cheapest? Or, Should I choose the plan that has the most bells and whistles? The solution is to find one that best aligns with your specific needs and offers good value for its cost (in terms of quality of services, provider expertise and stability, investment choices, etc). 12

14 To ensure you don t overpay or obligate yourself to something that s more complicated than what you need, it s a good idea to go into the process with a clear understanding of what s most important to you and your business. Start by outlining the features and characteristics that are most important to you and to your employees. Rank those in order of importance, and then look at plans that best meet your top criteria. You may want to consider things such as: Ease of set-up Complexity (or simplicity) of administration Availability of plan design options you feel you need (such as ROTH, vesting options, etc.) Flexibility for employees needs Diversity and quality of investment choices Well-defined and rigorous investment selection process (done by your provider) Integration with payroll and deposit systems Education and advisory services for you and your employees Ability to be implemented as a startup plan Quality of expertise and ongoing solid support you expect you d receive from the provider 4. Consider the value of the provider s expertise and support for you and your employees Having a trusted partner you can rely on to help you navigate retirement plan best practices, conduct ongoing due diligence on investment managers and funds, and keep you up-to-speed on the impact of regulatory changes can save you a lot of time and headaches. When looking at different plan providers, factor in the level of support and value you and your employees can expect to receive based on the provider s: Experience working with companies like yours Experience with retirement plans and depth of knowledge Experience with personal retirement planning for business owners Experience in employee education and perspectives Focus on, and commitment to, companies of your size View of, and interest in, your complete financial picture 13

15 STEP 5 Seek insight from experts With the ever-evolving retirement landscape and so many demands on your time, finding the opportunity to dedicate your mind and efforts to figuring out whether or not to offer or retain a retirement plan can seem like an impossible task. Taking 20 minutes to speak with an experienced professional can save you hours of sifting through research on your own and can arm you with insight that helps you focus on the factors that are the most relevant for your situation and goals. Key experts you should consult in making your decision include: Your accountant (preferably a CPA with strong retirement plan knowledge) An experienced retirement plan provider with expertise across an array of plan types A personal financial advisor with expertise in business owner retirement planning If needed, an attorney experienced in business retirement plans and ERISA laws By consulting a full-service financial institution that has a strong background in retirement plans, business financial strategies and personal retirement planning, you may be able to gain efficiencies in this process. Frequently, the business banking, company retirement plan and personal retirement planning professionals are inter-connected and work together to address your complete financial picture, which can eliminate the need for separate consultations on that front. At SunTrust, our commitment to helping companies navigate the world of retirement plans and equip them to make smart decisions doesn t just extend to our existing clients. In addition to custom consultations with our current clients, our experienced specialists are also available to provide a personal consultation or second opinion to all businesses regardless of who your current banking or retirement provider may be. We re happy to meet with you to discuss any questions you may have on the information in this document or to provide tailored guidance for your specific situation. Just call us at or contact your existing SunTrust relationship manager to request a business or personal retirement plan review. 14

16 Sample worksheet of employee questions you may want to consider asking: 1. Rank each of the following according to their importance to your job satisfaction: (Choose the ones you want to include.) VERY SOMEWHAT SLIGHTLY NOT NO IMPORTANT IMPORTANT IMPORTANT IMPORTANT OPINION a. Salary or wage level b. Healthcare benefits c. Retirement plan benefits d. Employer financial stability e. Work/life balance f. Recognition and feedback from manager g. Workplace culture and friendliness 2. How important is having a retirement plan through your employer to your overall retirement planning? Very important Somewhat important Slightly important Not important No opinion 3. How experienced are you in planning and saving for your personal retirement? Very experienced I have a well-defined retirement plan and am making progress on it through savings Somewhat experienced I have defined goals and have started retirement savings to work towards them Only slightly experienced I have participated in a retirement plan in the past or have some retirement savings accounts, but don t have a defined plan or goal No experience I have not yet done anything to plan or save for my retirement 4. How familiar are you with the following types of retirement plans? (Choose the ones you want to include.) VERY SOMEWHAT SLIGHTLY NOT NO IMPORTANT IMPORTANT IMPORTANT IMPORTANT OPINION a. Defined benefit pension plan b. Simplified Employee Pension plan (SEP) c. Traditional 401(k) plan d. Savings Incentive Match Plan (SIMPLE) plan e. IRA 5. Rank the following features according to their importance to you in a retirement plan: (1 representing the most important and 8 representing the least important.) a. Personal control over the amount that is contributed b. Having a defined payment amount that I will receive in retirement c. Being able to make my own decisions on how my retirement funds are invested d. Being able to take additional risk for the potential of greater returns e. Having the ability to change the amount I contribute to the plan based on my current financial situation f. Being able to access funds in my retirement account in case of personal financial hardship g. Having my employer fund my retirement savings instead of contributing myself h. Being able to take my retirement plan with me if I change jobs Which of the following retirement plan appeals most to you: (Select one) a. Defined benefit pension plan b. Simplified Employee Pension plan (SEP) c. Traditional 401(k) plan d. Savings Incentive Match Plan (SIMPLE) plan e. IRA

17 Securities and Insurance Products and Services: Are not Bank Guaranteed Are not FDIC or any other Government Agency Insured May Lose Value Services provided by the following affiliates of SunTrust Banks, Inc.: SunTrust Online 401k, banking and trust products and services are provided by SunTrust Bank. SunTrust Bank may use or offer the services of affiliate companies as well as third party entities to achieve your banking and investment objectives. Where applicable, any affiliations and all pertinent provider information will be disclosed in accompanying agreements and prospectuses. Securities, insurance (including annuities and certain life insurance products) and other investment products and services are offered by SunTrust Investment Services, Inc., a SEC registered investment adviser and broker/dealer and member FINRA and SIPC. SunTrust Bank and its affiliates and the directors, officers, employees and agents of SunTrust Bank and its affiliates (collectively, SunTrust ) are not permitted to give legal or tax advice. While SunTrust can assist clients in the areas of estate and financial planning, only an attorney can draft legal documents, provide legal services and give legal advice. Clients of SunTrust should consult with their legal and tax advisors prior to entering into any financial transaction or estate plan. These materials are educational in nature. The implications and risks of a transaction may be different from client to client based upon each client s unique financial circumstances and risk tolerances SunTrust Banks, Inc. SunTrust and Live Solid. Bank Solid. are federally registered service marks of SunTrust Banks, Inc. SunTrust Online 401k is a service mark of SunTrust Banks, Inc. SunTrust Online 401k is offered in conjunction with eplan Services, Inc. eplan Services, Inc. is not an affiliate of SunTrust Banks, Inc. pmg