We feel so confident about the design of our plans that Benetrends stands behind the Rainmaker Plan with the industry’s only written guarantee for plan design, and we provide this guarantee up front to each and every one of our clients.
As Benetrends is the original designer of the Rainmaker Plan® for 401(k)/IRA business funding, we’ve developed a plan design and a set of systematic procedures that make this process simple and turnkey for our clients. Our staff of professionals is dedicated solely to retirement planning and administration, and they’re committed to the satisfaction of our clients. In fact, many of our clients have access to their funds in as little as two weeks. And because we provide ongoing plan administration, we’ll also ensure that your plan remains compliant.
The Guarantee
“Our ‘Rainmaker’ Guarantee” ensures that, if you follow the terms and conditions listed below and the terms set forth in our Engagement Agreement, Benetrends, Inc. will be there to protect your plan in the rare case that there is an inquiry or audit by the Internal Revenue Service (IRS) or Department of Labor (DOL).
This guarantee offers you the following resources:
- A dedicated retirement plan analyst and an immediate backup analyst to consult and help you with any compliance, IRS, or DOL inquiry;
- An on-staff ERISA attorney for consultation, as needed in connection with IRS or DOL inquiries or audits;
- Assistance with IRS or DOL inquiry responses and resolution at no additional cost to you;
- Assistance with preparation for IRS audits for your plan at no additional cost to you; and
- If needed, Benetrends, Inc. will provide legal counsel to represent you in tax court if the IRS or DOL try to disallow your retirement plan solely because of its investment in your active “C” corporation’s employer stock. The allegations must be on the grounds that this transaction is being challenged as a prohibited transaction and that you have followed all Benetrends' procedures and requirements. If any penalties or interest are assessed as a result of the above allegation, Benetrends will reimburse you for such expense.
In order to be eligible for “Our ‘Rainmaker’ Guarantee” you must meet all of the following terms and conditions:
- The corporation must be engaged in an active business.
- The plan’s primary sponsoring entity must be a “C” corporation and the plan can only purchase employer stock of that “C” corporation.
- Anyone who intends to roll over funds into the plan must be hired as an active employee and receive W-2 compensation from your “C” corporation.
- All funds being rolled over into the plan must either be a direct rollover from one qualified retirement source to the plan or a cash distribution from a qualified retirement source that is deposited into the plan no later then 60 days from the date of receipt of the funds.
- A stock appraisal must be obtained stating the fair market value of the company stock as of the date of the initial stock purchase in your “C” corporation. If it is an existing business or an additional purchase / sale of employer stock in your “C” corporation, then a third-party business valuation is required, at your expense.
- All employees who are eligible for the plan, as stated in your customized Adoption Agreement, must be given the same investment options.
- All investment options must be participant directed and a diversified mix of funds must be made available to all participants for all plan sources.
- A profit-sharing contribution must be made as soon as possible, but in all events not later than the third year after the creation of the plan, if the 401(k) feature of the plan is not being utilized.
- “Our ‘Rainmaker’ Guarantee” will only apply if you are a current client of Benetrends, Inc. at the time of the IRS or DOL inquiry or audit. Benetrends assumes no responsibility or liability if your plan is serviced by another third-party administrator or recordkeeper.
Benetrends, Inc.’s liability and obligations relative to your plan are as stated above based on the limits and terms of “Our ‘Rainmaker’ Guarantee” and Engagement Agreement. Except as stated above, “Our ‘Rainmaker’ Guarantee” will not provide you with anything of value or pay you any money. Please be aware that Benetrends, Inc. is a recordkeeper and is not the plan administer, fiduciary or trustee of your retirement plan. If you do not follow the specifications as set in your Plan Book, which includes your Adoption Agreement, Basic Plan Document and Summary Plan Description, or comply with ERISA law, rules and regulations, then you will be responsible for all costs and expenses related to correcting the plan, potential penalties or services necessary to rectify this matter.
For more information, ask a Benetrends retirement-planning professional for details regarding the Rainmaker Guarantee. Contact us today!
