401(k) & Retirement Plans Options
SkyOak Capital helps employers design, implement and manage retirement plans that meet the needs of both the business and its employees. We work with businesses establishing their first retirement plan as well as employers evaluating whether an existing plan can be improved.
Depending on the business and its objectives, we can help evaluate 401(k), profit sharing, cash balance, SEP, SIMPLE IRA and other retirement plan structures. SkyOak works alongside the plan’s recordkeeper, third-party administrator (TPA), actuary and other professionals as appropriate.
For ongoing retirement plan advisory relationships, SkyOak Capital may serve as a 3(21) investment fiduciary or 3(38) investment manager, depending on the responsibilities established in the advisory agreement.
How SkyOak Helps Employers
A retirement plan involves more than choosing investments. Plan design, employee demographics, employer contributions, investment options, costs, service providers and fiduciary responsibilities all need to work together.
SkyOak helps employers evaluate these different pieces and coordinates with the plan’s other service providers.
Depending on the engagement, our work may include:
- Plan Design — Helping the employer evaluate retirement plan structures and features based on the goals of the business and its employees, in coordination with the TPA and other plan professionals.
- Investment Policy— Assisting with the development and ongoing review of the plan’s Investment Policy Statement.
- Investment Selection & Monitoring — Evaluating the investment lineup and conducting ongoing investment monitoring and due diligence.
- Fiduciary Investment Services— Serving in a 3(21) or 3(38) investment fiduciary capacity when included in the engagement.
- Provider Evaluation — Helping employers evaluate recordkeepers, third-party administrators and other retirement plan service providers.
- Plan Costs — Reviewing plan and investment expenses and helping employers understand the services being received for those costs.
- Employee Education— Providing general investment and retirement education to help employees better understand and use their retirement plan.
Understanding 3(21) and 3(38) Fiduciary Services
SkyOak Capital can provide different levels of investment fiduciary responsibility depending on the needs of the employer and the scope of the engagement. Both 3(21) and 3(38) arrangements involve fiduciary responsibility, but the primary difference is who has authority to make the plan’s investment decisions.
Under a 3(21) investment fiduciary arrangement, SkyOak provides investment advice and recommendations, while the employer or other plan fiduciary retains responsibility for making the final investment decisions. SkyOak is responsible for the fiduciary investment advice it provides, while the employer remains responsible for the decisions it makes.
Under a 3(38) investment management arrangement, SkyOak is given discretionary authority to select, monitor and make changes to the plan’s investment lineup within the scope of its appointment. SkyOak assumes fiduciary responsibility for those delegated investment decisions.
In both arrangements, the employer retains certain fiduciary responsibilities, including responsibility for selecting and monitoring SkyOak and for other fiduciary duties not delegated to us.
Retirement Plan Options
401(k) & Profit Sharing Plans
A 401(k) can provide employees with the ability to save for retirement while giving employers flexibility in plan design, matching, safe harbor and profit-sharing provisions.
SkyOak works with the employer and its TPA to evaluate plan design and provides investment selection and ongoing fiduciary monitoring when engaged to do so.
Cash Balance & Defined Benefit Plans
For established businesses seeking the ability to make larger retirement contributions, a cash balance or defined benefit plan may be considered alongside a 401(k) and profit sharing plan.
These plans require specialized plan design and actuarial services. SkyOak coordinates with the plan’s TPA and actuary and can provide investment management for plan assets.
SEP & SIMPLE IRA Plans
SEP and SIMPLE IRA plans can provide a relatively straightforward retirement-plan option for certain businesses. As a company grows or its objectives change, we can help evaluate whether continuing the existing plan or moving to a 401(k) or another plan structure makes more sense.
Other Retirement Plan Strategies
Depending on the employer and its objectives, additional retirement or executive benefit arrangements may also be considered, including stock bonus plans and other specialized retirement structures.
SkyOak works with the employer’s TPA, attorney, accountant and other specialists when plan design requires additional tax, actuarial or legal expertise.
Who We Work With
SkyOak Capital works with employers of all sizes and across a variety of industries. Our clients may include privately held businesses, professional practices, nonprofit organizations and larger employers with established retirement plans.
We work with companies establishing a new plan, employers that want to evaluate or redesign an existing plan, and plan sponsors seeking ongoing investment management and fiduciary support.
For business owners, we can also consider the company retirement plan in conjunction with their personal retirement, investment and financial planning.
Fees
Retirement plan advisory fees depend on plan assets and the services provided. Fees are disclosed in writing before an engagement begins, and recordkeeping, administration, investment and other third-party expenses may be separate.
Complete information about SkyOak Capital’s retirement plan advisory fees is available on our Fees page and in the firm’s Form ADV.
Your Advisor
SkyOak Capital’s Employer Retirement Plans practice is led by Damien Rennie, Senior Wealth Advisor & Director of Employer Retirement Plans and Self-Directed IRA Services, from our Medford, Oregon office.
Damien works with business owners, plan sponsors, recordkeepers, third-party administrators and other retirement plan professionals to help design, evaluate and advise employer-sponsored retirement plans.
FAQs
Questions About 401(k) & Retirement Plans
What is the difference between a 3(21) and 3(38) fiduciary?
Under a 3(21) arrangement, SkyOak provides investment advice and recommendations while the employer retains responsibility for making the final investment decisions.
Under a 3(38) arrangement, SkyOak has discretionary authority to select, monitor and make changes to the plan’s investment lineup within the scope of its appointment and assumes fiduciary responsibility for those investment decision.
In either arrangement, the plan sponsor retains certain fiduciary responsibilities.
Does SkyOak Capital replace our recordkeeper or third-party administrator?
No. SkyOak works alongside the plan’s recordkeeper and third-party administrator. If an employer is evaluating its current providers, we can also assist with the review and selection process.
Can SkyOak Capital review a 401(k) plan we already have?
Yes. We can evaluate an existing plan’s investment lineup, costs, service providers and overall structure and help identify areas that may warrant further review or improvement.
Can business owners contribute more than the standard 401(k) limits?
Depending on the business, employee demographics and plan design, additional employer contributions or another retirement plan structure, such as a cash balance plan, may provide opportunities for larger contributions. These strategies are evaluated with the plan’s TPA, actuary and tax professionals.
Does SkyOak Capital work only with small businesses?
No. SkyOak Capital works with employers of different sizes, from owner-operated businesses to larger organizations with established retirement plans. The appropriate services and plan structure depend on the needs of the employer and its workforce.
Where does SkyOak provide employer retirement plan services
SkyOak Capital serves employers nationwide, with offices in Las Vegas, the San Francisco Bay Area and Medford, serving businesses throughout Southern Oregon.