Small Business Retail Marketing Plans - PowerPoint

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					Putnam
Small Business
401(k)

                      Presenter
                      Title




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  Putnam Small Business 401(k)
 The small business opportunity
 Putnam Small Business 401(k)
      Key features
      Plan types
      TPA option
 How contributions work
 Putnam Small Business 401(k) versus other
  retirement plans
 What plans are eligible?
 How to get started

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Small businesses:
An untapped market
          PERCENT OF BUSINESSES OFFERING RETIREMENT PLAN

                                          89%


                                                                           46%




                                  Large                                   Small
                                companies                               businesses
                              (More than 100                          (Fewer than 100
                                employees)                              employees)
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2004.



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Putnam Small Business 401(k)




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  Putnam and ExpertPlan:
  A winning combination
 Putnam Investments
      Over 67 years of investment experience
      A retirement plan leader for more than 30 years
      DALBAR-award winning customer service
 ExpertPlan
      Innovator in cutting-edge recordkeeping technology
      Leader in Internet-based DC plan administration
      Dedicated support teams with a wealth of industry
       experience


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    Key features
 Best of both worlds: Putnam’s DALBAR Award-
    winning service and ExpertPlan’s cutting-edge
    technology
   Online setup, enrollment, and maintenance
   Online and VRU account transactions, including
    automatic rebalancing
   Toll-free telephone support
   Contributions made via ACH or check




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    Key features
   Broad selection of investment options
   Standardized prototype documents and SPD
   Signature-ready 5500 form
   Compliance testing provided by ExpertPlan
   Online participant statements
   24/7 voice response system
   Loan availability
   Online participant-education materials



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  How the Small Business 401(k)
  compares with other retirement plans
                                                                    2005 MAXIMUM CONTRIBUTION
                                                                                       Profit sharing/             Small
        Participant’s                                                                      money                  Business
       compensation*                      SIMPLE IRA                    SEP IRA        purchase plans              401(k)
                 25,000                        $10,750                      $6,250           $6,250                   $20,250

               $50,000                         $11,500                    $12,500           $12,500                   $26,500

             $100,000                          $13,000                    $25,000           $25,000                   $39,000

             $150,000                          $14,500                    $37,500           $37,500                   $42,000

             $200,000                          $16,000                    $40,000           $40,000                   $42,000




* Contributions by self-employed business owners are limited to 20% of net earnings.



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    Flexible contribution options
   Salary deferral
   Employer profit sharing
   Employer matching contributions
   Catch-up contributions for participants
    age 50 and older




    Lower limits may apply if compensation constitutes self-employment income.



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   The loan feature
 Participants may take personal loans
 This is not a feature on many small business
  retirement plans
 A key benefit for participant home purchases




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     Choose the plan type to fit your
     client’s needs
    EZ Setup Plan
    Standard Plan
    Safe Harbor Plan
    Age-based Profit Sharing Plan*
    New Comparability Plan*




    * Age-based and New Comparability Plans cannot rely on a Prototype document and may require the services of a TPA to perform the additional cross-
      testing required for these plan types. Employers should seek competent professional counsel before adopting these plan types.



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  EZ Setup Plan
 Most features set automatically
 Helps comply with non-discrimination requirements
 Reduces need for outside plan counsel




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  Standard Plan
 Maximum flexibility in designing plan options
 Can be tailored to specific needs of the business
 Employer chooses vesting schedules, eligibility
  requirements, withdrawal features




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  Safe Harbor Plan
 Available as a feature for EZ Setup and
  Standard Plan
 Eliminates ADP/ACP and top-heavy requirements
 Good for companies with low participation
  or high turnover
 Employer and highly compensated employee
  deferrals not contingent on participation




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  Age-based Profit Sharing Plan
  New Comparability Plan
 Favors older and more highly compensated
  employees
 Requires the services of a TPA or other professional




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  The TPA Option
 TPA option offers the ExpertPlan platform and
  Putnam’s award-winning service
 Uses the plan-design customization offered by
  qualified TPAs
 Great for individually designed plans




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    Wide range of investment options
 To help satisfy requirements for fiduciary protection
    under ERISA 404(c)
   Plan built around a core offering of Putnam funds
   Also a choice of nearly 40 other Putnam funds
   Can be supplemented by funds from more than 16
    other mutual fund families who offer outside funds
   No restriction on the number of funds you select;
    no additional per-fund charge
   Retirement Choice Portfolios™ with auto-rebalancing
   RetirementReady ® Funds: age-based portfolios
    Outside funds available for plans using A shares with over $1 million in existing assets or R shares (no asset qualification).
    Prospectus for outside funds available through ExpertPlan.



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  Who is eligible?
 Start-up plans
 Typically, existing plans with under
  $3 million in assets
 Putnam 401(k) plans are also available
  for larger companies




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     A range of pricing options
 Class A shares*
 Class R shares*




 *  For A share plans not designated as NAV, all initial purchases into Putnam Money Market will go to class T shares, which pays an immediate trail of
    0.25% and has no initial sales charge. Standard sales charge applies when money is exchanged into an equity or income fund. An investment in the
    fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve
    your investment at $1.00 per share, it is possible to lose money by investing in the fund.
 ** No up-front commission. Immediate trail.



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   Cost effective
   PUTNAM SMALL BUSINESS 401(k) FEES
                                            ANNUAL
                            SETUP/       ADMINISTRATIVE    PARTICIPANT
   ASSET                CONVERSION FEE        FEE             FEE
        $0 – $2M             $750             $750                    $30

       $2M – $5M             $500             $500                    $20
           >$5M              $500               $0                      $0




 Loan: $50 setup, $25 annual maintenance
 Distribution: $50 per occurrence



                                                          225120_putnam_small_k   5/5/2005   20
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   How to get started
 Log on to Putnam’s Advisor Web site at
  www.putnaminvestments.com
 Go to Accounts section
 Click on Putnam Individual (k) and Small Business (k) to
  access plan and participant information and create proposals

                        OR

 Call your Putnam representative
      Putnam Dealer Marketing Services: 1-800-354-4000
      Putnam Small Business 401(k) Hotline: 1-866-207-7261



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This information is not intended as tax or investment advice. You should
consider how this information would apply to your client’s particular
circumstances when giving advice.




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               FOR DEALER USE ONLY

   For most recent calendar quarter-end performance,
please see the Putnam Quarterly Performance Summary.
          For more information, please call
 Putnam Dealer Marketing Services at 1-800-354-4000.
           www.putnaminvestments.com
              Putnam Retail Management

				
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