Attract, Retain, and Reward employees

Start Your Own 401(k)

Purposeful SP 401(k)s and Solo-Ks are built on conflict-free advice, the protection of Charles Schwab or TD Ameritrade as custodian, expert regulatory and tax compliance, and the opportunity to delegate company fiduciary responsibilities.

If you already offer a retirement plan, working with Purposeful SP might lower plan costs, offer better investment options, reduce your fiduciary liability, and provide even greater benefits to your employees.

Asset Custodian Option

Asset Custodian Option

Asset Custodian Option

Asset Custodian Option

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Benefits of offering a 401(k):

  • Attracting and rewarding better employees

  • Reducing income tax liability for owners and top executives

  • Increasing employee retention and productivity

  • Protecting assets from lawsuits and other liability

  • Diversifying owner’s wealth beyond the business

  • Providing for the owners’ retirement

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A Fiduciary & Fee-Only Advisor

Purposeful SP provides fiduciary and fee-only advising on the plan and the investment options. No conflicts of interest from commissioned sales. (Learn More)

An Expert ADMINISTRATOR and Recordkeeper

Your plan administration, tax filings, and regulatory compliance are provided by our partner, PCS, an industry leader founded in 2001 by tax and ERISA attorneys.

A proven and strong custodian

Your plan’s assets are custodied either at Charles Schwab or TD Ameritrade, meaning your money is held at a trusted company with a long-history of protecting investors. Neither Purposeful SP nor PCS have access to plan moneys.

Proper Fiduciary Delegation can

Reduce Liability

As the sponsor of a retirement plan, your company has a fiduciary responsibility (and liability) to protect the assets of the plan for the benefit of employees. This means your company can be sued and held legally liable for problems with your retirement plan. But you can reduce this liability:

3(16) + 3(38): Delegation of Administrative and Investment Duties

Under this model, your company has reduced your fiduciary responsibility to managing and monitoring plan providers (Purposeful SP and PCS), eliminating much of the liability for the retirement plan.

Your company delegates authority in writing to a Purposeful SP as a qualified fiduciary advisor, who then makes discretionary decisions on the investment options within the plan. An advisor taking on the full 3(38) fiduciary status greatly reduces the company’s liability for investment decisions. In addition, your company may delegate the administrative functions of the plan to PCS. This includes the regulatory compliance, tax filings, and notifications required by law.

No Delegation - Your Company has Full Fiduciary Responsibility

Most 401(k) providers will not take on the fiduciary obligation for client companies, or offer only 3(21) delegation which still leaves your company at risk. Under these models, the plan sponsor (your company) makes the investment choices for the plan, functions as a prudent investment expert, ensures regulatory compliance, and retains full liability for any potential problems. Providers may offer a menu of proprietary insurance or mutual fund products, and may offer recommendations (not advice) from a non-fiduciary advisor, but your company is still fully liable.

Many companies believe they have delegated their fiduciary responsibility to an outside company but in reality have not.