Switching Providers
How a 401(k) Plan Conversion Works
Switching providers doesn't have to mean disruption. Our team manages the entire transfer — from due diligence through asset movement — while your employees can keep contributing throughout. Typical timeline: 30 days to establish, 90 days to complete.
The Short Version
- Phase 1 — due diligence: we review your current plan documents with a 48-hour turnaround before anything is signed.
- Phase 2 — new plan live in ~30 days: employees can begin contributing immediately, with no blackout on new contributions by design.
- Phase 3 — asset transfer complete in ~90 days: your prior provider moves balances (typically 45–60 days) while we coordinate.
- Two assigned specialists — an implementation specialist and a Client Success Manager — run the whole transfer.
- Your team can keep saving without a contribution gap — and finally on a plan built for franchise operators.
The Process
Three coordinated phases
01
Phase One · 48 Hours
Due Diligence Review
You submit your existing plan documents, and our team runs a full due diligence review with a 48-hour turnaround — surfacing compliance issues and hidden fees before anything is signed.
Timeline · 48 hours
02
Phase Two · 30 Days
New Plan Established
You review and sign the new plan documents and the plan goes live. Employees can begin contributing immediately, with no blackout on new contributions by design, while two assigned specialists coordinate every step.
Timeline · ~30 days
03
Phase Three · 90 Days
Asset Transfer Complete
Your prior provider schedules and completes the asset transfer — typically 45 to 60 days — while our team coordinates every handoff. Typical total: 30 days to establish, 90 days to complete.
Timeline · 45–60 day transfer
By the Numbers
What the timeline looks like
30 + 90
Days to establish, then complete the full asset transfer0
Days of blackout on new contributions, by plan design48 hr
Due diligence turnaround on your current plan documents2
Assigned specialists coordinating every step of the move
Done For You
What our team manages
- Full project management of the transfer, end to end — from prior provider to your new plan.
- Two assigned specialists — an implementation specialist and a Client Success Manager — as your single point of contact.
- A 48-hour due diligence review of your current plan documents to catch problems up front.
- Direct coordination with your prior provider to prevent the operational failures that can derail a conversion.
- Contributions on the new plan can begin without a gap — no blackout by design.
- Since your plan design is already being revisited, we also model a coordinated Profit Sharing and Cash Balance stack for the owner and key employees — not just a rebuild of the same basic 401(k) under a new name.
Common Questions
Plan Conversion FAQ
How long does a 401(k) plan conversion take?
About 30 days to establish the new plan and about 90 days to complete the full asset transfer from your prior provider. The asset transfer itself is typically scheduled by the prior provider over 45 to 60 days. Timing depends on your prior provider, payroll, document readiness, and plan-specific requirements.
Will my employees stop contributing during the conversion?
Generally, no. Employees can begin contributing to the new plan immediately, with no blackout on new contributions by design. The existing balances from your prior provider move during a transfer window the prior provider schedules; timing depends on your prior provider, payroll, and document readiness.
Who manages the conversion?
Two assigned specialists manage the transfer end to end: an implementation specialist and a Client Success Manager. They coordinate directly with your prior provider to prevent operational failures. It's part of the
full service catalog.
What do you check during due diligence?
We review your existing plan documents within 48 hours to surface compliance issues and hidden fees before anything is signed — so problems are caught up front rather than after the transfer.
Can we convert in the middle of the year?
Yes. A conversion can happen at any point in the year. Our specialists coordinate the timing with your prior provider and payroll so deferrals and matching are coordinated to continue without a gap.
What happens to outstanding participant loans?
Outstanding loans are addressed as part of the transfer. Our specialists coordinate the loan records with your prior provider so participants can continue repayment without a gap.
Is a plan conversion a good time to explore profit sharing or cash balance?
Yes — it's often the ideal time. Since your plan design is already being revisited during a conversion, it costs nothing extra to also model what a coordinated
Profit Sharing and Cash Balance stack could shelter for the owner and key employees, rather than simply replicating a basic 401(k) under a new provider.
Timelines shown are typical, not guaranteed. Establishing the new plan, avoiding a contribution blackout, and completing the asset transfer depend on your prior provider's cooperation, payroll system, document readiness, asset type, and plan-specific requirements, and may take longer in some cases.
Thinking About Switching?
Let's map your conversion.
In 30 minutes we'll review your current provider, outline the timeline for your structure, and show how the move is designed to avoid interrupting your team. See the
full franchise solutions or
pricing.
