EMG Collective 401K Plan
Find a Simple and Effective 401(k) Plan for Your Clients
The EMG Collective 401(k) is a retirement plan available to brokers who do not hold a securities license. If your clients are business owners that offer group benefits to their employees, one of the most effective ways to grow your book of business is to offer a comprehensive portfolio of benefit options. Most employers prefer to manage their benefits in one place, so if you can help them with one plan, you can likely sell them additional options such as group dental, vision, and life insurance. This plan is a significant opportunity for many brokers to retain clients interested in bundling retirement plans with their other employee benefits.
What is the EMG Collective 401(k)?
EMG is the exclusive brokerage general agency offering the EMG Collective 401(k). We have partnered with a trusted team of national 401(k) plan experts to create a simple retirement plan option for your clients. The program is provided by Ameritas, which specializes in small group plans. In 25 states, brokers, who are life & health insurance licensed and appointed with Ameritas, do not need to be securities-licensed to sell the EMG Collective 401(k). The Retirement Advantage (TRA) serves as the plan’s Third-Party Administrator (TPA). Mesirow Financial is the plan’s investment fiduciary. TRA & Mesirow, handle 95% of the employer’s plan fiduciary responsibilities. Stadion provides individual account investment management for plan participants’ accounts.
Is the EMG Collective 401(k) plan right for my client?
For employers, The EMG Collective 401(k) plan is attractive to employers, because it places most of the administrative and fiduciary responsibility on independent fiduciary firms. Most 401(k) providers service large corporations and do not provide independent fiduciary services, making it difficult for smaller companies to access high-quality services. The EMG Collective 401(k) Plan is designed to bring premium benefits to small companies, including small businesses and employers while removing up to 95% of the fiduciary responsibilities.
How do I find the right 401(k) plan for my clients?
As an agent, you should offer your clients a diverse set of products and services to meet their needs. If you are unable to offer a retirement plan option, they may instead turn to a securities licensed advisor. Because most employers prefer to manage all their benefits in one place, you risk losing not only new business but also your existing clients.
In most cases, advisors need a securities license to write and offer 401(k) plans. A lack of a securities license prevents many agents from offering retirement plans to their clients. The EMG Collective 401(k) Plan is designed for non-securities-licensed agents by leveraging a qualified group variable annuity that is exclusively provided for employers to offer to their employees.
If you are not securities-licensed and want to offer retirement programs to your clients, the EMG Collective 401(k) is one of the few options available on the market. Apart from being the only BGA to offer this program, EMG also will provide you with expert support. You do not have to become a 401(k) expert to benefit your clients. By working with EMG, you will have front-end sales support and back-office support you need to sell and enroll your client in a 401(k) plan. In addition, the fiduciary responsibilities are covered by our partners, making it easy for your client.
- Pros
- Both Tax Deferred (pre-tax) & Roth after-tax employee deferrals are allowed.
- Tax-free withdrawals at retirement on Roth after-tax contributions & earnings on those contributions.
- Higher contribution limits than SEP IRAs & SIMPLE IRAs.
- No mandatory contributions from the employer.
- Loans are allowed.
- Fully comprehensive enrollments.
- Back-end support.
- For businesses having two or more employees (non-spousal).
- No mandatory contribution from employees.
- Employer contributions are deductible.
EMG can help.
As a brokerage general agency, EMG Insurance Brokerage handles everything from submission to the commission. Our relationships with over 50 carriers allow us to help choose the best solution for your client. We will walk you through the process and help you customize solutions for the unique needs of each client.
We offer this exclusive product as part of our commitment to helping financial advisors and their clients nationwide get the coverage they need. We partner with Ameritas, The Retirement Advantage, Mesirow Financial, and Stadion to put experts behind every part of the process.
Connect with us by phone, online, or in person, and schedule a consultation with your sales director today to learn how you can provide a better retirement plan option for clients.