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401k Plan Auto Features Win Plan Design Category

401k Plan Auto Features Take Center Stage at 401ktv Genie Awards

401k Plan auto features took center stage in the Plan Design Category during the 401kTV GENIE Awards held at the Park Lane Hotel in New York City.  Immediately following the 401kTV GENIE Awards Panel, which focused on 401k Plan Design, Category Finalist and 401k Plan Design Category Winner, Mr. Daniel Zlotnick, CEO of KZ Wealth Management and Applied Pension Management Services shared plan design strategies with 401kTV Correspondent, Frank Licari.  Mr. Zlotnick oversees the qualified retirement plans for approximately 140 companies from the firm’s Long Island, New York headquarters. During the interview, Daniel discusses specifically how his firm was able to drive favorable 401k results through implementing 401k plan auto features. That strategy improved plan participation rates and helped the firm to master the annual discrimination testing.

Full Transcript Here

Frank Licari:
Frank Licari here 401K TV Genie awards. First of all, congratulations on being a finalist.

Daniel Zlotnik:
Thank you very much.

Frank Licari:
Give us your name and the role at your company.

Daniel Zlotnik:
Sure. My name is Daniel Zlotnik. I’m the CEO of KZ Wealth Management and Applied Pension Services located in Long Island, New York.

Frank Licari:
Wonderful. What got you here today and give us a little insight into what you did.

Daniel Zlotnik:
Sure. We oversee about 140 plans and some of our vendors, I think, we’re impressed with some of the results that we were able to provide for a few of our clients. I think one notable was a client out in Long Islands, as well as they have, I think, 14 other locations throughout the country. They were having difficulty passing their discrimination test. Highly-paid people were receiving large refunds. The CFO was taking the heat, and the HR director and CFO met with us and said, “What can you do?”

Daniel Zlotnik:
We kind of introduced auto-enrolment and sweep enrollment and auto-increase and they elected that they weren’t ready for that at the time, so we tried to elongate the match. That wasn’t very successful. The CFO came back to us and said, “Do you have carte blanche? Do whatever you need to pass the overall discrimination tests.”

Daniel Zlotnik:
We did install then sweep enrollment, auto-enrollment, and auto-increase, and after the first plan year, we were able to pass the overall with the discrimination test. So it was-

Frank Licari:
And that’s the result you wanted.

Daniel Zlotnik:
That was exactly the result that not only we wanted, but the CFO, the CEO and, what I understand, the board of directors as well.

Frank Licari:
Great. Great job. Congratulations on that. What do you think of the Genie Awards?

Daniel Zlotnik:
Genie Awards is great. Anytime that we can get together with our peers and discuss our problems, our issues, and try to figure out good outcomes and good ways of processes of putting them in place, it is always helpful for our practice as well as hopefully for theirs.

Frank Licari:
Fantastic. Pleasure having you.

Daniel Zlotnik:
Thank you very much.

Frank Licari:
Good man. Thank you.

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