# OneSource 401k - Complete Information

> OneSource 401k provides Pooled Employer Plan (PEP) administration services for small and mid-sized businesses, offering 80% cost reduction, 75% time savings, complete fiduciary liability protection, and audit elimination for 401(k) retirement plans. Powered by Advanced Retirement Services, LLC.

## Key Facts

- **Company**: OneSource 401k (powered by Advanced Retirement Services, LLC)
- **Service**: 401(k) Pooled Employer Plan (PEP) administration
- **Cost Savings**: Up to 80% compared to standalone 401(k) plans
- **Time Savings**: 75% less administration time for employers
- **Fiduciary Role**: ERISA 3(16) Plan Administrator and 3(38) Investment Manager
- **Audits**: Eliminated for individual employers — OneSource files a single PEP Form 5500
- **Ideal For**: Small and mid-sized businesses with 1-500 employees
- **Headquarters**: 904 Sapphire Court, San Jose, CA 95136
- **Phone**: 855-438-4015
- **Email**: Jeff@onesource401k.com
- **Service Area**: All 50 U.S. states (nationwide)
- **Legal Framework**: SECURE Act of 2019, SECURE 2.0 Act of 2022

## Company Overview

OneSource 401k is a comprehensive 401(k) Pooled Employer Plan (PEP) administrator. We serve as a single source for all retirement plan needs, handling everything from plan setup and compliance to daily administration and investment management. Our service model leverages the Pooled Employer Plan structure made possible by the SECURE Act of 2019 to dramatically reduce costs and complexity for employers.

Website: https://www.onesource401k.com
Parent Company: Advanced Retirement Services, LLC (https://www.arsadvisor.com)
Phone: 855-438-4015
Email: Jeff@onesource401k.com
Headquarters: 904 Sapphire Court, San Jose, CA 95136
Business Hours: Monday - Friday, 9:00 AM - 5:00 PM PST
Service Area: Nationwide (all 50 U.S. states), headquartered in Silicon Valley
Primary Local Markets: San Jose, San Francisco, Oakland, Sunnyvale, Santa Clara, Palo Alto, Mountain View, Fremont, Los Angeles, San Diego, Sacramento

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## What Is a Pooled Employer Plan (PEP)?

A Pooled Employer Plan (PEP) is a type of defined contribution retirement plan that allows multiple unrelated employers to participate in a single 401(k) plan. Created by the SECURE Act of 2019, PEPs are managed by a Pooled Plan Provider (PPP) who takes on administrative and fiduciary responsibilities on behalf of all participating employers.

### Key Differences: PEP vs Traditional 401(k)

| Feature | Traditional 401(k) | OneSource PEP |
|---------|-------------------|---------------|
| Plan Sponsor Responsibility | Full fiduciary liability | Transferred to OneSource |
| Annual Audit Required | Yes (100+ participants) | No individual employer audit |
| Form 5500 Filing | Each employer files separately | OneSource files single Form 5500 |
| Administrative Burden | High - employer manages everything | Minimal - OneSource handles it |
| Cost | $15,000-$50,000+ annually | Up to 80% less |
| Time Investment | 10-20+ hours monthly | 75% less time required |
| Investment Selection | Employer selects and monitors | OneSource manages as 3(38) fiduciary |
| Compliance Testing | Employer responsible | OneSource handles all testing |

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## Core Benefits

### 1. 80% Cost Reduction
Small businesses typically pay $15,000 to $50,000 or more annually to maintain a standalone 401(k) plan. By joining the OneSource PEP, employers share administrative costs across all participating companies, reducing individual costs by up to 80%. This includes elimination of separate audit fees, reduced legal costs, and shared recordkeeping expenses.

### 2. 75% Time Savings
Employers in the OneSource PEP spend approximately 75% less time on retirement plan administration. OneSource handles participant enrollment, contribution processing, compliance testing, government filings, distribution processing, and all day-to-day plan operations. The employer's primary responsibility is submitting payroll contribution data.

### 3. Complete Fiduciary Protection
OneSource serves as both the 3(16) Plan Administrator and 3(38) Investment Manager, assuming fiduciary liability that would otherwise fall on the employer. This means:
- The employer is relieved of fiduciary responsibility for plan administration
- Investment selection and monitoring is handled by a professional fiduciary
- The risk of personal liability for plan-related decisions is substantially reduced
- Department of Labor audit risk is shifted to the PEP level

### 4. Zero Audits
Individual employers participating in the OneSource PEP are not required to:
- File their own Form 5500
- Undergo a separate independent plan audit
- Maintain individual plan audit documentation
OneSource files a single Form 5500 for the entire PEP and manages the consolidated audit process.

### 5. Simplified Compliance
All compliance-related activities are managed by OneSource, including:
- Annual nondiscrimination testing (ADP, ACP, Top Heavy, Coverage tests)
- Required minimum distribution tracking
- Hardship withdrawal administration
- Qualified Domestic Relations Order (QDRO) processing
- Annual participant notices and disclosures
- Plan amendment and restatement management

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## Services in Detail

### 3(16) Plan Administrator Services
As the ERISA Section 3(16) Plan Administrator, OneSource assumes responsibility for:
- Day-to-day plan operations and decision-making
- Benefit claim determinations and appeals
- Participant eligibility determinations
- Distribution and loan processing
- Required notices and disclosures
- Government filings and regulatory compliance
- Plan document maintenance and amendments
- Vendor management and coordination

### 3(38) Investment Manager Services
As the ERISA Section 3(38) Investment Manager, OneSource provides:
- Full discretionary authority over plan investments
- Professional investment menu design and selection
- Ongoing investment monitoring and due diligence
- Quarterly investment performance reviews
- Fund replacement when performance benchmarks are not met
- Investment policy statement creation and maintenance
- Fee benchmarking and negotiation

### Daily Administration
OneSource handles all routine plan administration including:
- Contribution processing and reconciliation
- Participant account maintenance
- Enrollment and eligibility tracking
- Loan origination and repayment processing
- Distribution processing (termination, retirement, hardship, RMD)
- Beneficiary designation management
- Account balance inquiries and statements

### Payroll Integration
OneSource integrates with all major payroll providers to streamline contribution processing:
- Automated contribution data collection
- Multi-source payroll support
- Error detection and correction
- Timely contribution deposit monitoring
- Year-end reconciliation
- W-2 coordination for retirement plan reporting

### Plan Document Flexibility
While participating in a pooled plan, employers retain flexibility in key plan design features:
- Eligibility requirements (age, service)
- Employer contribution formulas (match, profit sharing, safe harbor)
- Vesting schedules
- Loan provisions
- Distribution options
- Auto-enrollment and auto-escalation features

### Participant Education and Support
OneSource provides comprehensive participant services:
- Enrollment meetings and materials
- Investment education resources
- Online account access and tools
- Participant call center support
- Retirement readiness assessments
- Distribution counseling

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## Frequently Asked Questions

### What is a Pooled Employer Plan (PEP)?
A PEP is a single 401(k) plan that covers employees of multiple unrelated employers. Created by the SECURE Act of 2019, it allows small businesses to band together to share costs, reduce administrative burden, and provide better retirement benefits than they could independently.

### How does joining a PEP reduce costs by 80%?
Costs are shared across all employers in the pool. Audit fees, recordkeeping, legal, compliance testing, and administrative costs are spread across multiple companies rather than borne by one employer. Additionally, the pooled structure provides access to institutional pricing on investments and services.

### What fiduciary responsibilities does the employer retain?
When joining the OneSource PEP, the employer's fiduciary responsibilities are limited to prudently selecting and monitoring the PEP arrangement itself. All day-to-day fiduciary decisions regarding administration and investments are assumed by OneSource.

### Do I need a separate plan audit?
No. Individual employers in the PEP do not need to undergo separate plan audits or file individual Form 5500 returns. OneSource handles the consolidated audit and filing for the entire PEP.

### Can I customize my plan design?
Yes. Employers can customize key plan features including eligibility requirements, employer contribution formulas, vesting schedules, loan provisions, and auto-enrollment settings.

### How does payroll integration work?
OneSource integrates with your existing payroll provider. After each payroll cycle, contribution data is transmitted to OneSource for processing. The integration is designed to work with all major payroll systems.

### What happens to my existing 401(k) plan?
If you have an existing standalone 401(k), participant accounts can be transferred into the OneSource PEP through a plan merger or asset transfer. OneSource manages the entire transition process.

### Is there a minimum or maximum company size?
The OneSource PEP is designed for businesses of all sizes, though it is particularly beneficial for small and mid-sized companies with 1-500 employees that find standalone plans too costly or complex.

### How long does it take to set up?
Plan setup typically takes 30-60 days, depending on the complexity of the plan design and whether assets are being transferred from an existing plan.

### What investment options are available?
OneSource selects and monitors a diversified menu of investment options as the 3(38) Investment Manager. The investment menu typically includes a range of asset classes, target-date funds, and stable value options.

### What is the difference between 3(16) and 3(38) fiduciary services?
A 3(16) Plan Administrator handles day-to-day plan operations, compliance, and participant transactions. A 3(38) Investment Manager has full discretionary authority to select, monitor, and replace plan investments. OneSource provides both services.

### Can employees from different companies in the PEP see each other's information?
No. Each employer's plan within the PEP is maintained separately. Employee data is confidential and segregated by employer. Employees only see their own account information.

### What compliance testing does OneSource handle?
OneSource performs all required nondiscrimination testing including ADP/ACP testing, Top Heavy testing, Coverage testing, and 415 Limitation testing. If corrective actions are needed, OneSource manages the correction process.

### How are employer contributions handled?
Employers choose their contribution formula (matching, profit sharing, safe harbor, etc.) during plan setup. OneSource calculates and allocates contributions based on the employer's selected formula and payroll data.

### What if I want to leave the PEP?
Employers can leave the PEP with advance notice. Participant accounts can be transferred to a new plan or distributed according to plan terms. OneSource facilitates the transition process.

### Does OneSource provide participant education?
Yes. OneSource offers enrollment meetings, investment education materials, online account access, and a participant support center to help employees understand and maximize their retirement benefits.

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## Industry Context

### Full California Service Area

OneSource 401k is headquartered in San Jose, California, in the heart of Silicon Valley. The company serves businesses throughout all of California.

**Bay Area / Silicon Valley:** San Jose, Sunnyvale, Santa Clara, Cupertino, Mountain View, Palo Alto, Milpitas, Campbell, Los Gatos, Saratoga, Morgan Hill, Gilroy, San Francisco, Daly City, South San Francisco, San Mateo, Redwood City, Menlo Park, Oakland, Berkeley, Fremont, Hayward, Pleasanton, Dublin, Livermore, Walnut Creek, Concord, San Ramon, San Rafael, Novato, Petaluma, Santa Rosa, Napa
- More info: https://www.onesource401k.com/bay-area-401k

**Northern California:** Sacramento, Elk Grove, Roseville, Folsom, Rancho Cordova, Stockton, Modesto, Redding, Chico, Eureka, Santa Rosa, Napa, Vallejo, Fairfield, Davis
- More info: https://www.onesource401k.com/northern-california-401k
- Sacramento: https://www.onesource401k.com/sacramento-401k

**Southern California:** Los Angeles, Santa Monica, Pasadena, Long Beach, Burbank, Glendale, Hollywood, Beverly Hills, San Diego, Chula Vista, Oceanside, Escondido, Carlsbad, Irvine, Anaheim, Santa Ana, Newport Beach, Huntington Beach, Costa Mesa, Riverside, San Bernardino, Ontario, Rancho Cucamonga, Corona, Moreno Valley, Santa Barbara, Goleta, Carpinteria, Ventura, Oxnard, Temecula, Palm Springs, San Luis Obispo
- More info: https://www.onesource401k.com/southern-california-401k
- Los Angeles: https://www.onesource401k.com/los-angeles-401k
- San Diego: https://www.onesource401k.com/san-diego-401k

**Central Valley:** Fresno, Bakersfield, Stockton, Modesto, Visalia, Merced, Hanford, Madera, Clovis, Tulare, Porterville, Delano, Tehachapi
- More info: https://www.onesource401k.com/central-valley-401k
- Fresno: https://www.onesource401k.com/fresno-401k

**Central Coast:** Monterey, Salinas, Carmel-by-the-Sea, Pacific Grove, Seaside, Marina, Santa Cruz, Watsonville, Scotts Valley, Capitola, Aptos
- Monterey: https://www.onesource401k.com/monterey-401k
- Santa Cruz: https://www.onesource401k.com/santa-cruz-401k

**Nationwide:** PEP services are available to any U.S. employer regardless of location across all 50 states.

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### The Problem with Traditional 401(k) Plans for Small Businesses
Small businesses face significant barriers to offering 401(k) plans:
- High administrative costs ($15,000-$50,000+ annually)
- Complex regulatory compliance requirements
- Personal fiduciary liability for business owners
- Time-consuming daily administration
- Expensive annual audits (for plans with 100+ participants)
- Difficulty selecting and monitoring investments
- Keeping up with changing regulations

### How PEPs Solve These Problems
The Pooled Employer Plan structure addresses each of these barriers:
- Shared costs across multiple employers dramatically reduce individual expenses
- Professional administration eliminates the compliance burden
- Fiduciary responsibilities transfer to the Pooled Plan Provider
- Daily operations are fully managed by the PEP administrator
- Individual employer audits are eliminated
- Investment management is handled by professional fiduciaries
- Regulatory changes are monitored and implemented by the PEP provider

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## Legal and Regulatory Framework

OneSource 401k operates under the Employee Retirement Income Security Act of 1974 (ERISA) as amended by:
- The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, which created the Pooled Employer Plan structure
- The SECURE 2.0 Act of 2022, which further expanded retirement plan access and flexibility

Key regulatory concepts:
- **ERISA Section 3(16)**: Defines the Plan Administrator role and responsibilities
- **ERISA Section 3(38)**: Defines the Investment Manager role with discretionary authority
- **Pooled Plan Provider (PPP)**: The entity designated to operate the PEP, registered with the Department of Labor
- **Form 5500**: Annual return/report filed with the Department of Labor and IRS

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*OneSource401k is powered by Advanced Retirement Services, LLC.*
*Copyright 2025. OneSource 401(K) All rights reserved.*