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401(k) Plan Setup

Frequently Asked Questions




Who is Ubiquity Retirement + Savings?

The Simply Retirement 401(k) plan is provided and serviced by the Ubiquity Retirement + Savings platform. Ubiquity is a leading fintech company with the mission to empower small businesses and their employees to create a more secure financial future by leveraging technology with affordable retirement solutions and world-class customer support.

What are the keys to successful plan setup and activation?


  •  Ubiquity will assign an Implementation Specialist to help the client set up their plan. Timely responses to requested and required information will ensure a smooth setup process. General contact information and hours of operation can be found on Ubiquity’s website.
  •  Ubiquity will assist the client in setting up their 401(k) plan; however, the client is responsible for:
    •  Adjusting the settings in their payroll provider’s system to accept employee contributions
    •  Adjusting the payroll settings in their 401(k) account to process employee contributions
    •  Regularly reconciling the payroll information submitted into both the payroll provider’s system and their 401(k) account to ensure the data in both systems match
    •  Ensuring Discretionary and/or Safe Harbor match are properly entered in both the payroll provider’s and Ubiquity systems so they can be processed successfully
  •  The client is considered the plan’s fiduciary unless they have hired a third party to satisfy that specific role. Ubiquity is not classified as the fiduciary
  •  Provide Ubiquity with accurate contact information for all individuals who will be involved in the plan setup, including any third parties, e.g., bookkeeper, advisor, etc
  •  An employee requires a unique email address to be added to the 401(k) plan
  •  To ensure successful ACH processing, the client should notify their bank that Kotapay will be processing ACH transactions as some banks may automatically reject the payroll funding attempt as an unauthorized transaction
  • How long will it take to set up and activate the 401(k) plan?
    The setup is a three-stage process. The timeframe to set up the plan can range from a week to four weeks or longer depending on such factors as the accuracy of information submitted, availability of plan sponsor, payroll schedule timing, plan effective date, holidays, etc.:

    •  Stage 1: Plan Sponsor and/or Trustee will sign any remaining plan documents/contracts (i.e., ACH processing form), add contribution funding information, and add payroll schedule. Concurrently, Ubiquity will begin configuring plan parameters, set up the custodial account, and activate the plan.
    •  Stage 2: Plan sponsor adds their employees to the plan and employees self-enroll.
    • Stage 3: Plan sponsor configures the settings in both their payroll provider’s system and 401(k) account to accept employee contributions. Note: we can provide the sponsor with general guidance on how to configure their payroll provider’s system, but don’t have direct access to any payroll provider systems so cannot configure these settings for them. Once these settings are made, the plan sponsor runs the first payroll and submits the payroll contribution information in the 401(k) account.

Note: If the plan sponsor is interested in payroll integration, they are still responsible for configuring their payroll provider’s settings and manually submitting payrolls until integration is activated, which can take up to 6 weeks.


Who will help set up the plan?


Once the plan is purchased, an Implementation Specialist from Ubiquity will be assigned to assist the plan sponsor set up and activate their plan.
After plan activation, Ubiquity’s Payroll (K)oncierge services are available to assist the plan sponsor in configuring their payroll provider’s system along with their 401(k) account. They can also assist with running the first payroll and submitting that payroll in their 401(k) account.


What are the Plan Sponsor’s responsibilities and who should be designated as the Plan Sponsor?


The Plan Sponsor is responsible for day-to-day plan administration such as adding and updating employee information, regularly submitting payroll data, reviewing and submitting all legally required filings to the government, and, when necessary, approving requests for employees requesting to take their balance out of the plan. Ubiquity can guide and assist the plan sponsor in completing these actions; however, does not conduct these on behalf of the employer.  We recommend designating someone able to conduct the above actions consistently and accurately through the online interactive platform.



Once the 401(k) plan is activated, does the plan sponsor need to do anything else?


Yes. The plan sponsor still needs to enter their 401(k) account information for all employees, including part-time W-2 employees, and configure both the company’s payroll provider’s system and their 401(k) account to process employee contributions. These steps are required for all plans, including those with auto enrollment.


Once the 401(k) plan is activated, when and where do employee deferral elections (i.e. employee contributions to their plan) need to be made?


Contributions need to begin with the first payroll check date after the plan effective date, or as soon as administratively feasible, and then ongoing for every pay period whenever an employee has elected to contribute to their plan. The contributions need to be elected in both the company’s payroll provider system and the plan’s 401(k) account.


How to configure contributions in payroll?


On or after the plan effective date, the plan sponsor can download the employee elections report found on the Plan Sponsor dashboard. The sponsor will then enter or send this information to their payroll vendor after the plan effective date. The payroll vendor can provide instructions on their process of updating participant elections. If there are matching contributions set to be funded per payroll, these will also need to be added to the payroll system too. Full instructions will be provided during the implementation process.


How to process contributions?


After the plan effective date, contributions are processed online by the plan sponsor or authorized third party agent. Full instructions will be provided during the plan implementation process.


How are contributions funded each paycheck?


Very easily! During the plan implementation process, we will set up ACH to automatically charge the funding account you add. Multiple funding accounts can even be set up for multiple payroll schedules.
To ensure successful ACH processing, we recommend that the Plan Sponsor notifies their bank that ACH processing through Kotapay is being set up; otherwise, the bank might automatically reject the payroll funding attempt as an unauthorized transaction.


Who is Kotapay?


Kotapay is the company that conducts the ACH processing of employee contributions for the 401(k) plan.


Does payroll still need to be submitted in my 401(k) account even if no employees elect to make contributions to their plan?


Yes, even if no one contributes, payroll figures need to be submitted into the 401(k) account each payroll period to calculate employees’ eligibility and vesting. We recommend that all payroll data be submitted within 7 business days of the payroll check date.



What is auto enrollment?


Auto enrollment is a plan feature that allows the employer to automatically deduct pre-set elective deferral amounts from each eligible employee’s paycheck unless the employee opts out or changes the deferral amount/rate. Employees can opt out or change their deferral rate after they set up their account. If they want to participate in the plan at the default rate, they simply do nothing.


How do I set up auto enrollment? Who submits employee deferral elections into payroll?


The plan sponsor or an authorized third party by your plan’s trustee(s) will need to update the company’s payroll system with the appropriate deferral election amount(s) as indicated on the “Participant Statements” page.
NOTE: Ubiquity doesn’t update the company’s payroll provider’s settings.


Will Ubiquity update the deferral election if an employee changes their deferral amount?


No, the plan sponsor or an authorized third party by your plan’s trustee(s) will need to update the company’s payroll system with the deferral election amount requested by the employee.


Are auto enrollment contributions Pretax or Roth?


If an employee Is contributing via auto enrollment their contributions are pre-tax. If the participant makes an election, they can choose Roth.


With auto enrollment, do I still need to process payroll? If so, when should I process it?


Yes, payroll will still need to be run normally by the plan sponsor or an authorized third party by your plan’s trustee(s). Contributions will be deducted starting with the next payroll after the effective date. For every payroll, once you have processed your payroll within your payroll software it will need to be submitted in the plan account within 7 business days.


How do plan sponsors see employees’ elections?


After a plan sponsor logs into their account, they select the Employees dropdown on the left side of the screen and click Participant Statements to see if the employee elected a contribution, the percentage, opted out, or are automatically enrolled in the plan and the percentage enrolled.
Note: this data is only available after the plan effective date.


How do employees know they are being auto enrolled?


For employees who are eligible to participate in the plan at the time they are entered into the plan by the plan sponsor or an authorized third party by your plan’s trustee(s), they will immediately receive an email from Ubiquity informing them that they have been auto enrolled in the plan.
For employees not eligible at the time they are entered into the plan they will receive the enrollment invitation email no sooner than 30 days prior to their eligibility date. Emails begin on or after the plan effective date.
We also strongly encourage the plan sponsor to inform employees prior.

How does an employee opt-out?


An employee can opt out in one of three ways:
  1.  Employee selects the opt-out option during the plan enrollment process
  2.  Employee logs into their account after enrollment and selects the opt-out option
  3.  Employee logs into their account and sets their deferral and/or Roth amount to $0


If an employee opts out, can they opt back in later?


No. Once an employee opts out of automatic enrollment they can’t opt back in, however, they can still participate in the plan by selecting a percentage/flat dollar amount to defer from future paychecks.



Please know that I am always here to assist, so if you have any further questions or are looking for some more guidance, I am always happy to help.