[topic 1]

What are the three main advantages 401k Easy Online has over other 401k plans?

1. Price
We offer two levels of plan design: Economy 401k and Elite 401k. Pricing for our Economy 401k starts at just $565 a year ($395 for one-person plans), while pricing for our Elite 401k starts at $845 a year ($595 for one-person plans). Both products are all-inclusive; pricing increases only with plan size. Our Elite 401k offers heightened investment and plan design flexibility. Both products include unlimited access to your plan-specific 401k Easy Online web portal and all the functionality it has to offer.

Visit our Pricing & Price Comparisons page for complete price lists as well as links to a chart comparing our Economy and Elite 401ks and how much money -- 60% to 80% in most cases -- 401k Easy Online can save your company.

2. Investment Flexibility
No 401k beats 401k Easy Online's investment flexibility. Our Elite 401k offers unlimited investment flexibility. Even our Economy 401k gives you your choice of self-directed brokerage accounts or any family of no-load mutual funds -- all from top name providers.

3. Ease of Use
401k Easy Online is incredibly easy to use. Menus are simple and self-explanatory. Pages load quickly. A high speed Internet connection is NOT required. Most small businesses can manage a 401k plan via 401k Easy Online in less than 20 minutes a month. The system is live 24-7 with all processing occurring on the spot. This is not only convenient for you, it also means participants can join the plan, gather information about it, choose and amend investment designations, etc., on their own time from their own homes' Internet connections rather than on company time.

401k Easy Online is easy to customize, too. In fact, every client's online Plan Sponsor Gateway and Plan Participant Gateway are customized to the client's EXACT 401k plan.

Our knowledgeable personnel will help you design the 401k plan that will be right for you and your employees. We offer two levels of customization: Choose 401k Easy Online Elite for unlimited investment flexibility, to offer employer matching and/or profit sharing contributions, choose vesting schedules for those contributions (if any), and/or offer 401k loans plus have unlimited free phone-based technical support and a three-year renewal price guarantee. Choose our Economy 401k for less extensive but still substantial investment flexibility (see above), to offer profit-sharing contributions and schedule vesting for such, and to receive free phone-based support during your plan's setup period. All 401k Easy Online plans include a 60-day money-back guarantee and unlimited free e-mail and online support. There's nothing easier -- not at these prices.

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[topic 2]

What are the two main differences between 401k Easy Online and other 401k plans?

1. Cost is the primary difference -- It could well be the mitigating factor in whether or not your company can sponsor a 401k.

-- No reasonably comparable 401k plan is priced as economically as 401k Easy Online.

2. Investment choice is the secondary difference:

-- Our Economy 401k lets you choose a single family of no-load mutual funds or you can choose self-directed discount brokerage accounts (for access to stocks, bonds, and more); see our Investments pages for specific investment listings and our Options page for a more thorough description of our Economy 401k.

-- Our Elite 401k lets you choose as many no-load mutual fund families from throughout the industry as you like, and/or you can choose any of various brand name self-directed discount brokerage accounts (for access to stocks, bonds, and more); again, see our Investments pages for specific listings.

-- Self-directed brokerage accounts mean each plan participant has access to his or her choice of investments. Stocks, options, foreign securities, mutual funds, bonds, corporate, municipal and zero coupons, certificates of deposit, government obligations, and UIT's are all available.

-- Most other plans offer far less selection; some limit you to no choice: they preselect the investments, usually their own, and often charge significant fees for additional, nonproprietary investments.

[topic 3]

What is a "401k prototype plan"? What does it mean that 401k Easy Online includes one?

The prototype plan is the master document describing and defining every aspect of a 401k prototype. The IRS analyzes this master and deems it "approved" or "disapproved." Once approved, the master can be used to create any number of 401k plans that fall within the approved specifications.

-- Included in the prototype plan can be a certain amount of plan flexibility, such as a variety of possible participation eligibility requirements.

-- With 401k Easy Online, you have IRS-approved flexibility with many of your plan's parameters (including its investments, as explained above).

-- We offer two levels of customization flexibility: an Economy route and an Elite route. See our Options page for the customization options available within each; relative pricing for our Economy and Elite plans can be found on our Pricing page. Suffice it to say that we make sure you have flexibility in parameters that our nearly 20 years in the industry have proved most important.

-- Ongoing plan qualification depends on, among other things, that your plan pass its annual IRS compliance tests (unless you've chosen to run your plan via the IRS-approved safe harbor method of plan administration). 401k Easy Online includes both point-and-click compliance testing with results in seconds (so you can run the tests after you finish each month's processing to see long before the official year-end tests if any undesirable trends are surfacing) and safe harbor software automation functions.

[topic 4]

We already have a 401k plan, but it's a headache and costs a fortune. Can we switch?

Yes. Our streamlined straightforward plan conversion process makes plan takeovers both easy and efficient -- and there's no lengthy black-out period. Our five-point plan conversion procedure is:

-- First, we get your new customized 401k plan up and running and ready to accept participants.

-- Employees then go online and enroll in the 401k Easy Online plan. The enrollment process includes making investment designations consistent with the offerings your compnay has chosen for its 401k Easy Online plan.

-- Meanwhile, we guide the process of having your former 401k's assets liquidated and the proceeds transferred directly into the new plan..

-- 401k Easy Online automatically properly allocates the incoming assets into each relevant participant's new personal investment designations.

-- This entire plan conversion process is transparent yet can be monitored by employer and employees alike.

Visit our Plan Conversions page for details.

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[topic 5]

Can we hire you to set up and run our 401k? What's the cost?

Easytec Systems, Inc., does not offer full service 401k plans, but we can recommend an affordable, reliable provider once we know your 401k needs. Please contact us if you're looking for a full-service, reliable, small business plan provider, whether online or otherwise.

[topic 6]

We've never sponsored a 401k plan before. Will someone help us with the particulars?

In establishing your 401k Easy Online plan, we explain 401k basics to you as well as the customization options available within our Economy and Elite plans and how each customization item typically affects the operation and popularity of a plan of your size.

Once you choose the features you want for your plan, we "hardwire" your decisions into your 401k Easy Online portals. The Plan Sponsor Gateway and Plan Participant Gateway you and your employees will use from then on to access your plan will not only reflect your plan's exact offerings but also automate numerous tasks for you.

The Gateways contain content-specific help screens that link to a free-access online support center dedicated to 401k plan operation via 401k Easy Online.

You also receive FREE one-on-one support and training via telephone during your plan's launch period plus written step-by-step instructions for launching your company plan, introducing it to your employees, and completing common management tasks.

Thereafter, our Elite clients continue to enjoy free telephone based support, Economy clients have it open to them on a pay-per-use basis, and all clients enjoy unlimited free e-mail as well as online support. Please visit this website's Technical Support page for details.

[topic 7]

What if we start with a self-service plan, then later decide we want an outside-serviced plan?

If, for any reason, you decide you no longer want to run your own 401k plan, we can quickly convert your 401k Easy Online plan into one serviced by an outside company -- we can even recommend a quality provider who specializes in 401k plans of your size.

So if your company grows by leaps and bounds and you decide you would rather pay someone else to do the work, we can help. Just let us know!

[topic 8]

Can 401k Easy Online handle 401k matching contributions? How about profit-sharing contributions? Are either mandatory? Do we have control over rates and vesting schedules?

401k Easy Online allows for the most popular 401k options permitted under current law, but does not mandate inclusion of any. Employer matching contributions, profit-sharing contributions as well as qualified nonelective contributions are all allowed within our Elite plans.

-- With 401k Easy Online you decide whether to offer (or exclude) employer contributions.

-- If you decide to include employer contributions, you choose the type(s) (matching, profit-sharing and/or qualified nonelective) and define the rate(s). Most any rate allowed by 401k regulations is permissible with 401k Easy Online.

-- If you decide to include employer contributions, you define the vesting schedule, too. You can choose a different schedule for any matching and profit-sharing contributions. Qualified nonelective contributions are, by law, always 100% immediately vested when made.

Remember to visit our Options page for a listing of the customization options available within our Economy vs. Elite 401k plans; relative pricing is on our Pricing page.

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[topic 9]

Does 401k Easy Online let us exclude part-time workers from receiving 401k employer contributions?

To exclude part-timers from receiving employer contributions, simply exclude them from participation in the plan by setting appropriate length of service and other participation requirements for your plan.

-- If you want part-timers to be able to participate in your 401k plan but not receive employer contributions, you're better off not offering employer contributions but instead offering some type of bonus to the groups of employees you seek to reward. 401k contributions are a percentage of pay, including bonuses, so paying bonuses will allow employees to contribute more to their 401k accounts themselves (in lieu of your making contributions for them). Please contact us or consult your tax advisor for details and further options.

[topic 10]

Can 401k Easy Online handle 401k loans? Are they mandatory? Do 401k loans increase the price of 401k Easy Online?

401k Easy Online offers two levels of plan cusotmization: our Economy 401k and our Elite 401k. Loans are allowed within our Elite plans.

There is no extra charge for including 401k loan capabilities in an Elite 401k Easy Online system.

-- Your company can charge plan participants a "reasonable" (in the IRS' eyes) fee for processing 401k loans; $25 to $50 is most common. We do NOT charge you or your plan's participants any loan fees.

-- Easy point-and-click tools to handle 401k loans are part of your plan-specific 401k Easy Online system.

NOTE: In 2002 the availability of 401k loans to certain business owners and officers was liberalized within what are known as the EGTRA Amendments. You can view a summary of the amendments within this website's ERISA 404c Compliance section. If you're a business owner and intend on taking out a 401k loan, we suggest you talk with a qualified tax advisor first to make sure you're clear on the new, more liberal regulations.

[topic 11]

Can 401k Easy Online handle 401k hardship withdrawals? Do we HAVE to offer them within our 401k plan?

The Internal Revenue Code says hardship withdrawals MUST be available to qualifying participants of every 401k plan. Both our Economy and Elite plans therefore contain hardship parameters; all 401k Easy Online systems include hardship withdrawal processing functions as well as informative literature for participants.

-- Your company can charge its plan participants a "reasonable" (in the IRS' eyes) fee for processing hardship withdrawals; $25 to $50 is most common. We do NOT charge any hardship withdrawal fees -- to you or your plan's participants.

-- Easy point-and-click tools to handle hardship withdrawals are part of your plan-specific 401k Easy Online system.

[topic 12]

What kind of investments are available with 401k Easy Online? Can we offer 401k self-directed brokerage accounts?

We offer two levels of plan customization: Our Economy 401k clients pay a little less but enjoy a little less investment and plan customization flexibility than do our Elite clients.

Our Economy clients can select a single family of no-load mutual funds for their company plan, or they can use self-directed discount brokerage accounts.

Our Elite clients can select as many no-load mutual fund families from any of more than 600 providers for their company plan, and/or they can select self-directed discount brokerage accounts from any of several well-known providers.

Regardless of which approach you choose...

-- The mutual fund families are all SEC-regulated and all offer a diversity of risk-return scenarios.

-- Even if you go with an Elite 401k, we often recommend choosing no more than three families of mutual fund investments because of the administrative complexity that can arise. Each family is designed to encompass the full spectrum of investing needs, so even a single family should provide your plan and its participants with sufficient diversity.

-- Self-directed brokerage accounts (through Schwab, Ameritrade, Fidelity or others) provide a greater number of investments and investment types, if that's what you're looking for. Such are available in both our Economy and Elite plans. There's a tremendous selection of no-transaction-fee mutual funds as well as stocks (major exchanges and OTC markets), options (covered calls), foreign securities (both listed and OTC), bonds (corporate, municipal, and zero coupon), and certificates of deposit, government obligations, and UIT's.

-- Visit our Investments section for specific listings of potential 401k investment options.

-- Visit our Options page to quickly compare the customization parameters available within our Economy versus Elite 401k plans; relative pricing can then be found on our Pricing page.

[topic 13]

Why do we re-subscribe to 401k Easy Online each year?

Your 401k Easy Online annual fee grants you and your employees unlimited use of your customized Plan Spoonsor Gateway and Plan Participant Gateway plus our maintenance of those Gateways, including technological as well as content updates (for instance, to government-imposed 401k contribution maximums and other the regulatory parameters that help define your plan's IRS-compliant, highly automated operation).

401k Easy Online annual fees are generally at least 60% less than competitors'. Visit our Pricing page for specific numbers.

[topic 14]

Why do we pay for "eligible employees," not just those who participate in our 401k plan?

Plan testing requirements set by lawmakers are written in terms of eligible employees, not participating employees; your 401k Easy Online program, therefore, is customized to account for all eligible (not just participating) employees.

The government's goal in creating the 401k plan is to encourage people to save money for their retirement. Lawmakers want all types of employees to make use of the 401k -- especially those categories of wage earners who historically rely heavily on Social Security for their retirement income. Employers are permitted to restrict eligibility to participate in company 401ks somewhat, but government rules have been written to encourage participation among lower-paid and mid-level employees; those who historically rely  more heavily on Social Security and other government assistance during retirement.

There are numerous ways to encourage widespread participation in your company 401k plan. The 401(k) Easy Management Guide contains many suggestions, or you can contact us for ideas before you even have us create your plan.

[topic 15]

How does 401k Easy Online help us keep our 401k in sync with IRS regulations?

We've built several safeguards into the 401k Easy Online system to help you keep your 401k in line with ever-changing IRS regulations:

-- We've programmed in relevant IRS regulations about contribution limits and compliance testing, among other things. For instance, the online service won't let you enter a contribution for a participant that will push the participant's year-to-date contribution total over the allowable maximum (and it tells you how much, if anything, the participant CAN contribute without exceeding the maximum).

-- 401k Easy Online runs the all-important ADP (average deferral percentage), ACP (actual contribution percentage), and top-heavy compliance tests that every 401k plan must pass at year's end. Although your plan only has to pass these tests at the end of the plan year, 401k Easy Online can run year-to-date tests as often as you like (we recommend monthly) so you can spot noncompliance trends -- long before mandatory year-end testing is done -- and running those tests is as easy as a mouse click. Consider 401k Easy Online as your in-house 401k Compliance Early Warning Radar.

-- 401k Easy Online Elite plans allow you to run your 401k plan using the safe harbor method of plan administration instead of using 401k compliance testing, if you prefer.

-- 401k Easy Online will only accept data that pertains to the appropriate calendar year, so you'll never process data under the wrong year's regulations.

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[topic 16]

Does 401k Easy Online help with IRS 401k compliance testing?

Yes -- with just a click of the mouse you can run year-to-date tests as often as you want to identify any trends toward noncompliance, so you can fix the problem before the final year-end tests.

-- 401k Easy Online runs the all-important ADP (average deferral percentage), CAP (actual contribution percentage), and top-heavy compliance tests that every 401k plan must pass at year's end. Although your plan only has to pass these tests at the end of every plan year, 401k Easy Online can run year-to-date tests as often as you like (we recommend monthly) so you can spot noncompliance trends -- long before mandatory year-end testing is done.  Running practice compliance tests is as easy as a mouse click.  Consider 401k Easy Online as your in-house 401k Compliance Early Warning Radar.

[topic 17]

Does 401k Easy Online help with 401k year-end tax reporting?

Included with your 401k Easy Online system is free access to our 401k FedForms website.

-- The 401k FedForms website contains annotated versions of relevant 401k-related federal reporting forms (Summary Annual Report, 5500 series, 1099-Rs, and more). The annotations tell you where within 401k Easy Online to find needed information.

-- The website also tells you what forms are relevant to your particular plan, and when each form is due to the IRS.

-- The 401k Easy Online software pulls many of the numbers together for you in a brief series of easy to read reports to further expedite your federal reporting processes.

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[topic 18]

How else does 401k Easy Online simplify 401k plan administration?

Because we're long-experienced in all aspects of 401k administration for plans of all sizes, we know plan administrators' needs and have created a series of brief, easy to read reports that let plan managers find the information they need -- quickly -- so they can do their jobs, quickly.

-- Whether it's reports summarizing investment accounts that accompany the month's contributions, or year-to-date account statements for plan participants, or information on outstanding 401k loans, the information is available at a mouse click.

-- Our 401k Management Guide (which you receive with your access codes to 401k Easy Online) contains an index summarizing the content of each report and typical uses for the information.

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