An IRS approved prototype or a custom designed plan document must be adopted by each employer. The Wagner Law Group, one of the countries leading ERISA firms, has prepared a simplified prototype. They will also prepare a customized document if you prefer.

There are very few rules that must be followed. As a result, the plan can be designed however you wish, and we will help you do that. We will then prepare what is needed to implement the plan.

The primary goal for this plan is to help middle to low-income employees by giving them incentives that will be contributed into an actual qualified retirement plan account. The plan can cover all employees who own less than 5% of the business or who make less than $155,000 per year. You have complete freedom to decide which of these employees will be eligible.

Yes, you may do so regardless of which type of plan you currently offer.

Yes, it can be, but there are many reasons why a separate plan is probably your best option. We will gladly discuss this with you. 

The first day of the month is the best time and you can pick any month you want. 

The plan can be terminated at any time.

It's a 401(a) qualified retirement plan that is totally employer-funded. Since it covers only non-highly compensated employees (NHCEs), it can be designed however the employer wants, including which employees to cover and how they get contributions.

The Wagner Law Group has done all the legal work and provided their legal blessing. They've prepared a prototype document with an adoption agreement that's only a couple of pages long with minimal decisions to make.

There is essentially no fiduciary risk since all money goes into a money market fund. There's no fund selection process required.

No. There's no compliance testing, no discrimination testing at the end of the year. This is a very simplified plan compared to traditional 401(k)s.

Since these are qualified employer contributions to a retirement plan, they are exempt from FICA, unemployment, and workers' compensation taxes. This saves employers approximately 7.65% plus unemployment and workers' comp rates.

Employee contributions to 401(k) plans became subject to FICA taxes (probably in the 1986 Reconciliation Act). However, qualified employer contributions like those in the Radish Plan remain exempt from FICA taxes.

Yes, withdrawals are subject to federal income tax and a 10% early distribution penalty if under age 59½, unless they qualify for penalty exemptions. However, withdrawals are not subject to FICA taxes and may not be subject to state and local taxes

Transfers from the Radish Plan to a 401(k) or IRA are direct trustee-to-trustee transfers with no taxable event. There's no 1099 generated for plan-to-plan transfers.

 No. Since it excludes highly compensated employees (HCEs) and there are no discrimination issues to worry about, it can be designed however the employer wants, including which employees to cover and different classes that get rewarded in different ways.

Contributions are 100% performance-based and tied to whatever performance standards the employer wants to establish - safety goals, on-time deliveries, customer satisfaction, attendance, productivity metrics, etc.

There are two components: (1) The employer determines when contributions are actually made to the plan (vesting schedule), and (2) once money goes into the plan, it's 100% vested. So the employer can set time requirements before contributions are made, but once contributed, the money belongs to the employee.

Yes, the money is more accessible than traditional 401(k) hardship withdrawals. Access is determined by employer-set criteria, and the plan is designed for employees to be able to tap into it for things like car repairs or unpaid medical expenses.

Initially, all money goes into money market funds because employees have ready access and we don't want it at risk. However, the plan document provides that employees can transfer money to a 401(k) or IRA where it can be invested however they want for longer-term growth.

The employer can set the threshold amount at which money can be transferred to other plans for investment growth. This allows employees who accumulate significant amounts to move money for longer-term retirement planning.

It's mobile web-based - employees don't need to download anything. This avoids issues with app downloads and cellular service costs that some employees face.

The system integrates with over 200 different payroll and HR software systems through Finch. This provides automated employee census data and updates when employees are terminated or hired.

It's gamified and shows current balance, earning campaigns (how they can earn money), past earnings, and importantly, potential earnings over the next 12 months to encourage retention.

Partners receive 20% of the monthly participation revenue, though this may need to be shared with financial advisors depending on the arrangement.

Complete marketing templates, industry-specific customization, co-branding opportunities, and direct support for presentations and demos. The team spends significant time preparing partners for success.

Radish handles all the record keeping through their platform. For custody and administration, accounts are set up at Broadridge, which handles things like annual notices and fee disclosures.

Employers make contributions based on the performance metrics achieved. The system tracks which employees earned what amounts based on the campaigns and criteria set up in the platform.

Broadridge handles annual notices and fee disclosures electronically. The simplified plan structure minimizes ongoing compliance requirements.

Any industry with measurable performance metrics works well. Primary focus has been trucking (safety, on-time delivery), but it also works for healthcare (patient satisfaction, attendance), sales organizations, manufacturing, construction, and service industries.

Yes, they're finishing development to allow IRA funding for 1099 contractors, which will enable sales organizations and other contractor-based businesses to participate.

Yes, small employers under 100 employees without existing qualified plans can use this to meet qualification standards for tax credits, including up to $1,000 per employee for contributions and administrative cost credits.