Plan Design – Must be willing to utilize the plan design and plan features shown on this website.
Payroll – The company must use a payroll provider with electronic integration to JULY or be willing to submit comprehensive payroll.
ACH – Fund contributions via ACH pull.
Online Setup – Complete the online setup forms and e-sign service agreements.
Online Features – Utilize and promote online plan features such as online enrollment, distributions, and loans.
No Outside Assets – All assets must be held in investments approved by the plan’s 3(38) fiduciary. Investments not approved by the fiduciary do not quality for Passport401k. Non approved investments include: brokerage accounts, employer stock, and annuities.
Takeover Plans – Certain takeover plans with protected and complex features are not allowed. This includes plans with joint and survivor annuity provisions and assets that cannot be converted to the investment options in Passport401k.
Single Payroll Contact – Must have a single payroll contact responsible for payroll communication.
Controlled Groups – Companies with employees that are part of a Controlled Group or Affiliated Service Group must adopt the plan.
Passport401k includes a Basic and Enhanced Plan design. The Enhanced Plan Design meets IRS Safe Harbor requirements and allows owners and highly-compensated employees to contribute the maximum contribution. Depending on plan participation, contributions of owners and HCEs can be limited. For more information discuss this with a member of the JULY Sales Team.
Passport401k includes Expand Financial as the 3(38) Investment Fiduciary. While the plan’s investment advisor may also serve as a 3(21) fiduciary, the advisor cannot serve as a 3(38) fiduciary. JULY has other products for advisors seeking this option.
Yes. Pre-tax deferrals are contributed before income taxes, saving employees 10%-37%. Pre-tax contributions grow tax free, and employees pay no income tax until amounts are withdrawn. With Roth deferrals, employees pay income taxes today, but at retirement, when funds are withdrawn, no income tax is assessed on original contributions or on earnings.
Participant-based and minimum fees must be paid by the employer until plan assets reach $200,000. Once assets exceed $200,000, the employer can elect to have these fees paid from plan assets or to continue paying them directly.
Passport401k is built using funds that do not pay revenue sharing. In the event a fund is chosen by the 3(38) Investment Fiduciary that includes revenue sharing, JULY will allocate those revenues back to plan participants.
No. JULY is appointed as a named fiduciary for most administrative duties which reduces fiduciary liability for these functions; however, the plan sponsor still has fiduciary responsibility for certain functions, including monitoring JULY and the plan’s investment advisor.
A key benefit to offering a PEP is that you are fully covered in the event of a plan audit, potentially saving you high audit costs. Passport401k undergoes its own plan-wide audit, covering participating plan sponsors that require a plan audit.
Participants enroll using our online participant enrollment system. We can also provide PDF copies of enrollment materials that can be printed and provided to participants as an option. Note: Spanish materials are not provided at this time.
JULY undergoes an annual SOC 1 Audit of recordkeeping controls by an Independent CPA Firm. We are one of only 16 firms nationwide to hold a Recordkeeping Services Certification from the Centre for Fiduciary Excellence – CEFEX (www.cefex.org).
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