Employee Benefits

Overview

Lincoln 401k

Section 125/129 Cafeteria Plan

Group Health Insurance

Life Insurance

Dental Insurance

Vision Insurance

Other Benefits

Alliance Programs

Online Benefit Enrollment

401(k) Retirement Savings Plans

Cardinal offers a multi-employer 401(k) retirement savings plan through Lincoln Financial Group.  This plan is operated by Cardinal and is designed to allow clients and their employees to invest a portion of their gross income into a tax sheltered mutual fund.  Cardinal takes on the administrative responsibilities for the plan and manages employee/employer contributions to Lincoln.  This plan is flexible in that it allows clients three (3) plans to choose from and it allows employees a full range of investment options with Lincoln.  (Cardinal does not contribute to the plan)

Plan A (Employee contribution only, no employer match)

• Highly compensated employees are not eligible to participate.
• The only contributions to this plan are employee salary deferral.
• Owner and family cannot participate in this plan.
• Annual Plan Cost to client is $100 per year.
• Annual Plan Cost to employee is $40 per year.

Plan B (Employer contributes 3% of all eligible employees’ wages)

• Employer is electing this to be a Safe Harbor Plan.
• The Safe Harbor contribution is 3% for all eligible employees’ compensation whether employee elects to defer salary or not.
• Plan requires 3 months of service before Employer Safe Harbor contributions can be made.
• Employee can contribute up to $15,500 ($20,500 if over 50 yrs. old).
• Annual Plan Cost to client is $100 per year.
• Annual Plan Cost to employee is $40 per year.

Plan C (Employer matches up to 4% of participating employee’s compensation)

• Employer is electing this to be a Safe Harbor Plan.
• The Safe Harbor contribution is a matching contribution equal to 100% of the participant’s deferral up to 3% of compensation, PLUS 50% of the participant’s deferral in excess of 3% of compensation, not to exceed 5% of the compensation.
• Maximum matching contribution is 4% of total compensation.
• Plan is only for eligible employees who voluntarily defer salary.
• Plan requires 3 months of service before Employer Safe Harbor contributions can be made.
• Employee can contribute up to $15,500 ($20,500 if over 50 yrs. old).
• Annual Plan Cost to client is $100 per year.
• Annual Plan Cost to employee is $40 per year.

Eligible Employees

• 21 years of age or older.
• After 3 months of service from original start date, for employee contribution to the plan.
• After 3 months of service from original start date, to be eligible for employer match.

Eligible PEO Clients

Only businesses that have signed a Personnel Agreement with Cardinal will be eligible.  In addition the client must sign a 401(k) agreement with Cardinal and agree to abide by the terms of the 401(k) Plan.  The client cannot offer other retirement plans to their employees.

Features

• Client has three plan options (including two Safe Harbor plans) to choose from.
• Fiduciary responsibility shifts to Cardinal.
• Plan administration handled by Cardinal and O’Connell Pension Consulting, Inc.  (TPA).
• Client is allowed to contribute up to $15,500 ($20,500 if client is over 50 yrs. old) to their own retirement (Plan B or C).
• Client can add themselves as an employee and match an additional 3% pre-tax.
• 100% vested upon entering plan.
• Loans--up to ½ of balance.  $75 set-up fee and $75 annual admin fee.
• Lincoln Web site with confidential access to personal portfolio.
• Low asset management fees to employees.
• Certified financial advisor available for enrollment and service.

Answers to Common Questions

• Lincoln Financial Group offers 10 families with over 40 funds for investing your 401(k) contribution.
• Employees may no longer be eligible for a deductible IRA of their own if this 401(k) is made available to them.
• Employees can change the amount they contribute to their plan up to three times during a plan year.
• Employees can enroll at any time after they become eligible.
• Employees can elect to have any bonus deposited directly into their 401(k).
• Cost to client is $100/year; cost to employee is $40/year.

For more information about any of these benefits, customized programs, or to obtain enrollment forms, contact a Cardinal Advisor at 800.342.4742.  We would be happy to provide you a free consultation on whether or not our services are a fit for you business.