ASAE Partners with The Principal Financial Group on 401(k) Plans for Members.

A comfortable retirement is a dream we all share. But for many hardworking employees the dream may never be realized. That's because, according to a 1999 report of the Spectrem Group, a New York City-based advisory firm specializing in the investment services industry, 78 percent of growing businesses (with fewer than 100 employees) do not offer a retirement plan to their employees. At ASAE, we found these numbers disturbing. Fortunately we have found a solution for our member associations that are currently without plans: Impact401k, an Internet-based 401(k) plan empowered by The Principal Financial Group, Des Moines, Iowa.

How does lmpact401k help these associations offer their employees the 401(k) plans they deserve? It helps them overcome the challenges that have blocked members' paths.

* Challenge one: Setting up and maintaining a 401(k) plan is too complicated. On the contrary, Impact401k's Web-based plan is easy to use, particularly for member associations for which surfing the net has already become a way of handling business. Impact401k's robust system makes it easy to build a 401(k) program by answering a few simple questions online. The result is a signature-ready plan document that meets IRS qualification requirements.

* Challenge two: Operating with a small staff, no one has time for the added work of administering a retirement program. Impact40lk is complete and fast. Plan sponsors key relevant data, such as the allocation of contributions, into an easy application--or sometimes import data from an existing spreadsheet. Contributions are transmitted via electronic funds transfer. Based on information that plan sponsors provide, IRS annual filing forms are prepared quickly and are then ready for review, signature, and mailing.

* Challenge three: No one in the organization has the expertise to administer the plan on a day-to-day basis. Impact401k is the first complete, end-to-end 401(k) solution on the Internet. All the elements that plan sponsors need to manage their retirement programs effectively are there. Plan sponsors can receive online assistance and plan members have a toll-free number to call for help. Plus, plan members have continual access to their account information and the freedom to handle investment transactions 24/7.

* Challenge four: Maintaining a 401(k) plan is too expensive. Impact401k brings you big plan features at a competitive price. There are no commissions, front- or back-end loads, or surrender penalties. The expenses are simple, straightforward, and among the lowest you'll find anywhere.

* Challenge five: Investments offered online can be of questionable quality. The Principal Group's 401k plan offers more than 47 investment options, including those wholly invested in underlying mutual fund families that you know and respect, such as American Century, Fidelity, Invesco, Janus, and Putnam.