Virtual Enterprises, International™

Application for a 401(k) VE Tax Deferred Savings Account 

Overview of a 401(k) Plan

The 401(k) VE is a tax-deferred savings plan available to employees of Virtual Enterprise firms. Employees' contributions to 401(k) VE plans are exempt from federal income tax.  Companies that offer a 401(k) plan to their employees are required to match the employees' contributions, dollar for dollar.  

Employees may contribute 15% of their gross wages up to a maximum amount of $11,000 per calendar year. (The contribution maximum may vary from year to year).

The Plan Administrator

Employees' and employers' contributions to the 401(k) VE plans become property of the plan (referred to as plan assets). A plan administrator must be selected by the employer to invest the plan assets. At the present time, Senior Investors and the VEC Bank offer plan administration services. 

Companies must submit an application to the plan administrator to open an account. A new application must be submitted each year.  While opening an account, the company will specify how they would like the plan assets to be invested. Senior Investors and the VEC Bank each offer separate investment options.

Opening an Account with Senior Investors vs. VEC Bank

If you open an account with Senior Investors, you must specify how you would like the plan assets to be invested. If you open an account with VEC Bank, plan assets can be invested in either a savings account offering 1.5 APR with a 1.51 APY or a money market account offering 1.75 APR with a 1.77 APY. For both accounts, interest is compounded daily, and paid monthly. 

Keeping Records of Employees’ and Employer’s Contributions

Contributions that have been deducted from employees' payroll and the company's matching contribution must be submitted to the plan administrator within five business days after the last day of the prior month's payroll period. Each company is responsible to keep records of each employee's contributions and share of the company contributions made on their behalf.

All 401(k) VE plans close on March 31. Plan administrators will convert all plan assets into cash and return the cash equivalent of the value of the plan assets as of April 1 to the company by April 15. The company is required to distribute to each employee their individual share of the cash value of the company's plan assets.

Directions to Open a VEC 401(k) VE Plan

Complete the application

1.        Complete the application below.

2.        Fax the completed application to the VEC at 212-799-7528 or submit the application online.

Transfer funds to VEC Bank

3.        Pay the employees' contributions and the company's matching contribution by the fifth day of business following the end of the prior month payroll period by transferring payment to VEC Bank  401(k) Account 100087426.

VEC Bank to Distribute Contributions

4.        The VEC will pay the company the full amount of employees' and the company contributions plus all accrued interest by April 15. The company will distribute to each employee his or her individual share by April 30.

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