ADP launches new 401(k) admin tool

ADP has launched a new 401(k) administration tool to give plan sponsors more flexibility in paying their plan fees and expenses. Called ADP ACCESS FlexAccount, the program gives plan sponsors the ability to choose how they would like to pay plan fees and expenses. Service fees that are paid to ADP from the various plan investment options can be credited to the ADP ACCESS FlexAccount. Alternatively, a company may have a service fee charged to its plan’s participant accounts – known as a “fee-from-trust” transaction – and credited to the ADP ACCESS FlexAccount. 

At the plan sponsor’s direction, funds in the ADP ACCESS FlexAccount may be used to pay administrative expenses, such as recordkeeping or consulting and advisory service fees. To track payments made from the account, plan sponsors will receive an annual ADP ACCESS FlexAccount report that will identify any surplus amounts that remain in the account and help plan sponsors effectively manage plan resources.