Q: What is a defined contribution plan?

A: A company retirement plan such as a 401(k) plan or 403(b) plan, in which the employee elects to defer some  amount of his/her salary into the plan and bears the investment risk.

Q: What is a defined benefit plan?

A: A company retirement plan in which a retired employee receives a specific amount based on salary history and years of service, and in which the employer bears the investment risk. Contributions may be made by the employee, the employer, or both.

Q: Why do I need a company like APEX to manage my retirement plan?

A: APEX Benefits Administration's primary function is to keep your plan qualified under the IRS standards to ensure your tax benefit status. We write the plan documents to reflect the needs of your particular plan and keep the plan updated with IRS amendments and any other requested amendments.

Q: How does my retirement plan work?

A: When using a 401(k) plan, the investment company and advisor provide employee meetings, daily valuation platforms, accounting for each employee by money source, employee investment forms and assistance to trustees when moving money between investment vehicles. This helps limit trustee liability. At year end APEX Benefits Administration requests payroll and investment information from the employer to process year end testing, ERISA statements and 5500s.