Ascensus SIMPLE IRA

Note: On July 22, 2024, our retirement plan was transferred from Vanguard to Ascensus.

We will be participating in Ascenus’ SIMPLE IRA. For all eligible employees, the Cadence OneFive SIMPLE IRA plan will make a non-elective contribution equal to 2% of employee’s compensation for the year.

Notification to Start Plan

The IRS requires us to announce the plan availability via IRS form 5305.

  • Form 5305 was completed and shared via the #Justworks channel in Slack

  • A copy of Form 5305 is also available in the share drive: GrowthOps > HR and Benefits > Retirement Benefits > Ascensus SIMPLE IRA 2024

  • Note: Vanguard’s Form 5305 was transferred to Ascensus and we will receive an Ascensus Form 5305 in October 2024 for the next plan year.

Plan Contact at Cadence OneFive

The Strategic Growth Lead will be the CadenceOneFive plan contact.

The CEO and the Strategic Growth Lead are authorized individuals on the account and have admin permissions to make changes to our plan, such as change contributions and add and remove users.

Plan Eligibility

  • Per the IRS, the plan is available to all full-time employees that have earned at least $5000 in the previous tax year and who will expect to earn $5,000 in the current year.

  • For new hires, contributions will be made after the 90-day onboarding.

  • Notification of plan eligibility can be found in the Shared Drive > Growth Ops > HR & Benefits > Retirement Benefits > Ascensus SIMPLE IRA 2024

  • Note: Vanguard’s notification of plan eligibility was transferred to Ascensus and we will receive an updated notification in October 2024 for the next plan year.

Process

  • All employees will be enrolled automatically and have 30 days to opt-out after plan notification or after becoming eligible, if a new hire. You can contact the Strategic Growth lead by email ([email protected]) to opt-out.

  • Contributions are made quarterly, with the last payroll for the quarter.

  • Interns and Part-Time employees who are eligible for a contribution, will receive their contribution at the end of their internship, unless they opt out.

  • For each year that we offer the plan, we will distribute a notification to employees. A copy of the 2024 notifications can be found here; 2025 notifications will be specific to Ascensus and available in October 2024.

Additional Contributions

Under our SIMPLE IRA plan, employees are not required to make any contributions to receive the benefit. However, employees are not restricted from making additional, pre-tax contributions to their Ascensus account up to that year’s plan limits. For 2024, the employee contribution limit is $16,000 and $19,500 for employees 50 or older. To make a contribution, the following steps should be completed:

  • You can manage additional contributions to your plan via Ascensus.
  • After making your plan changes, send a note via Slack or email to the plan administrator (currently the Strategic Growth Lead) with the frequency of deductions (see chart below), amount or percent of the contribution and start date.
  • Note: for Justworks, the start date can be no later than the pay date for the first payment to which the deduction should apply. This start date can be before theemployer contribution date.
  • To cancel or change automatic deductions, follow the contribution steps above with a note on the end date or date the change in contribution will take place.

An overview of Ascensus’ SIMPLE IRA can be found here: https://www.ascensus.com/solutions/retirement/plans-featuring-vanguard-investments/simple-ira/