Combined ESOP & 401(k) Administration

Your ESOP & 401(k) Administration, Together at Last

Industry-leading expertise, seamless communication, and unmatched service combined to make your ESOP and 401(k) compliance reporting easier and more efficient than ever before.

Why Use Menke’s Combined ESOP & 401(k) Administration?

If your company sponsors an ESOP and a 401(k) plan, you know the frustration of having to deal with three sets of testing and compliance: one for your ESOP, one for your 401(k), and one to see how the two plans work together.

Working with two separate, unconnected administrative firms to handle all of this testing and reporting is inefficient, time-consuming, and leaves you vulnerable to reporting errors and compliance violations.

Some firms claim to bundle all your ESOP and 401(k) services under one roof, then steer you toward higher fees that they pass along to your plan participants and call it savings. When issues arise, they often lack the expertise in ESOPs’ complex ERISA requirements to solve them effectively.

We believe that to achieve the best results, you need the best experts in each plan working together.

With Menke’s Combined ESOP & 401(k) Administration Services, you get the benefit of the nation’s premier ESOP advisors working in partnership with the one of the largest 401(k) recordkeepers in America to provide you with more streamlined, efficient, and cost-effective administration for both of your plans.

Benefits include:

Seamless communication and collaboration between your ESOP and 401(k) administrators.
Integrated sponsor web platform makes it quick and easy to monitor both plans.
Online portal with powerful, easy-to-use retirement planning tools for your employee participants.
Open 401(k) architecture for plans of >$1 million—not restricted to proprietary funds.
All fees disclosed up front, never any hidden charges.

6 Steps to a Successful Combined 401(k) & ESOP Administration

Submit your census report. This can be done through a convenient online portal, ensuring that Menke and your 401(k) recordkeeper have identical information.
Determine eligibility. Menke and your 401(k) recordkeeper determine which employees are eligible to participate in your ESOP and 401(k).
Allocation. After your outside ESOP appraiser has determined the value of your company stock, Menke ensures every participant receives the correct shares.
Compliance tests. Menke tests your 401(k) and ESOP to ensure they are in full compliance with all ERISA regulations.
Combined testing. Menke makes sure that your 401(k) and ESOP work together properly, and refund any 401(k) participants who deferred too much.
Final paperwork. Menke prepares a Form 5500 for your ESOP and another for your 401(k) and helps you complete and file them before the IRS deadline.

Why Use Menke’s Combined ESOP and 401(k) Administration Services

Better Coordination

No duplication of data sent
Compliance testing better coordinated
Combined reporting of 401(k) and ESOP balances on website and on participant statements

Better Recordkeeping Options

Only selected top-tier recordkeepers are used
All recordkeepers offer open architecture

Complete Investment Freedom

You choose the Investment Adviser for the fund
No requirement to use proprietary funds

Full Transparency of Fees

We charge a fixed fee for services
We do not charge asset-based fees
All fees are fully disclosed
Total fees are typically less than with bundled ESOP & 401(k) program

Menke Combined ESOP & 401(k) Administration Services

Menke ESOP TPA Services	Menke 401(k) TPA Services	Affiliated Recordkeeping Services	Sponsor Selected Investment Advisor
Provides customized plan design	Provides customized plan design	Maintains record-keeping	Helps determine investment selection criteria
Provides ongoing plan consulting	Provides ongoing plan consulting	Distributes quarterly statements and newsletters	Develops investment policy statement
Files IRS forms and provides reporting (Form 5500 & Summary Annual Report)	Files IRS forms and provides reporting (Form 5500 & Summary Annual Report)	Provides website and online access for all Plan Sponsor communications	Provides participant education
Does participant record-keeping and processes participant distributions	Gives notification of law and regulatory changes	Processes participant loans and distributions	Conducts annual fund reviews
Performs all compliance tests (top heavy, annual additions, coverage, & contribution limits)	Performs all compliance tests (top heavy, annual additions, coverage, & contribution limits) and Nondiscrimination testing (ADP & ACP)	Provides online access, including projection and investment analytical tools, for all participants	Individual financial planning if needed