Discovering the Advantages of Controlled Access Design

ACA Supports the Needs of Plan Sponsors
ACA helps plan sponsors increase participation and reduce unnecessary borrowing. ACA is an ideal solution that:

• Encourages plan participation and increased contribution rates (even with young and lower paid employees)
• Eliminates the need to coordinate repayments or amortization schedules with payroll vendors
• Reduces administrative burdens and manual intervention on final loan payments
• Enables plan sponsors to select limits below IRS 72(p)
• Integrates with existing recordkeeper software and processes
• Promotes smart borrowing practices through employee education efforts
• Allows plan sponsors to specify acceptable merchant codes

ACA simplifies the complexities associated with managing lump sum loans—thereby allowing more time for plan sponsors to focus on other important corporate initiatives.

ACA Accommodates Plan Participants' Needs
ACA enables plan participants to access funds in their retirement plans if they have difficult times, but with more control and options than are possible with a lump sum loan. Participants are able to:

• Limit loan amounts to exact needs rather than large lump sums
• Keep remaining loan balances within the plan where funds continue to grow tax-deferred
• Repay the loan through flexible repayment methods
• Continue to maintain their ACA revolving loan line if the employee-employer relationship ends (voluntarily or involuntarily)

ACA provides participants with a straightforward and easy to understand loan option. Participants have more flexibility than ever, including if they leave their job, by opting for an ACA loan line.