November 20, 2000

(1068 words)

LOS ANGELES Southern-California-based Easytec Systems, Inc.'s patented 401(k) Easy and Advisors 401(k) software-based "run-it-yourself" 401k administration systems let small businesses manage their new or already-existing 401k plans in-house from the privacy and security of their desktop computers in 10 to 15 minutes a month and at an average savings of 60% to 80% a year.

Easytec Systems, Inc. built the now-patented run-it-yourself systems from the internal system developed and employed by its full-service 401k affiliate, Pension Service Associates (PSA). PSA has been providing reasonably-priced, quality full-service 401k plans to small and midsized businesses since the mid 1980's. PSA's price and service advances came about by eliminating unnecessary delays and expenses inherent in most traditional 401k administration systems. For instance, PSA works with the mutual fund companies and discount brokerages to establish individual participant investment accounts rather than doing the traditional pooling of plan assets. As a result, PSA doesn't, like most other plan administration services, have to spend time tracking how much of each investment belongs to each participant; PSA then passes the savings on to the client.

With the prevalence of computers and related knowledge in today's workplace, PSA recognized the potential for small and midsized businesses to run their 401ks in-house much as they today perform many other once outsourced functions such as bookkeeping, tax preparation, and typesetting/publishing. PSA had so perfected and automated its full-service 401k administration that it knew companies could easily use its tools to do the data input and processing themselves - at improved efficiency and a savings of thousands of dollars a year.

Easytec Systems, Inc. was founded with the mandate to develop a run-it-yourself 401k system for the public based on the successful PSA full-service system. 401(k) Pro integrated PSA's experience with the lay person's need for simplicity and speed, and in late 1999 debuted 401(k) Easy. 401(k) Easy was soonafter described by The Wall Street Journal as "(allowing) small businesses to manage 401k plans as easily as a consumer navigates family finances with programs such as Quicken" (12/27/99, C1). By the dawn of 2000 Easytec Systems had created a slightly different version geared toward financial services professionals called Advisors 401(k), which, like 401(k) Easy, is designed to be used by the small business itself but, unlike 401(k) Easy, is designed to be used with mutual funds that generate investment commissions for a financial advisor.

Both 401(k) Easy and Advisors 401(k) are adaptable to new and existing 401k plans of any size. They are particularly attractive to small businesses due to the plans' low price, investment flexibility and free options, things poorly lacking in today's other plans supposedly created for small businesses (Fidelity's e401k, Impact 401k, and ez401k, for instance). Pricing starts at $495 a year (see price list). Clients also pay a first-year-only $500 plan and software customization fee. Participant loans, employer matching contributions, automatic enrollment, and other popular 401k features are included at the client's discretion at no extra charge. Free help is available with understanding available plan options and the typical effect of each on a 401k plan. Any needed plan conversion services are free of charge.

The systems come with the client's choice of 401k investments. One of the most popular features of PSA plans was always the tremendous investment choice allowed, a lesson Easytec Systems applied to 401(k) Easy and Advisors 401(k). 401(k) Easy clients can choose self-directed discount brokerage accounts from Charles Schwab, TD Waterhouse and others as well as no-load mutual funds from T. Rowe Price, Fidelity, and others for their plans. Advisors 401(k) clients choose from an extensive array of Class A, B or C mutual funds from top-name providers. A database of potential investments and information on each is available on the respective websites. Free help with choosing plan investments is available.

The systems come with a 60-day money-back guarantee on everything except investment performance and the one-time $500 plan and software customization fee. Because the $500 fee is nonrefundable, Easytec Systems makes a full-featured demonstration copy of the plan administration software available for free download from the respective websites. The demos are also available on CD-ROM, which can be ordered through the websites or by calling (800) 660-0050.

The systems come with everything a small business needs to effectively and efficiently deliver a quality 401k, including an IRS-approved prototype 401k plan customized to the client's specifications, 401k administration software and companion materials customized to the exact plan they service, the client's choice of plan investments, a supplemental FedForms CD-ROM that makes completing 1099-Rs, the 5500 series and more quick and easy, and free support.

In Development: Run-It-Yourself Online 401ks
Potential branding arrangements with key financial institutions are being explored for online versions of 401(k) Easy/Advisors 401(k) self-service plan administration. Chosen institutions will each house a customized version of the run-it-yourself 401k system within their websites for use by their new and existing small business clients. Each version will suit its host's particular site design and offer its host's lineup of proprietary investments/self-directed brokerage accounts.

401(k) Pro, Inc., Creator of Run-It-Yourself 401k Plans

Customized 401k plans and run-it-yourself plan administration for small businesses

Software-based run-it-yourself plan administration takes small businesses only 10-15 minutes a month

Unsurpassed affordability: Price* is based solely upon plan size:

	2-4 eligible employees 5-15 eligible employees 16-25 eligible employees 26-50 eligible employees 51-75 eligible employees 76-100 eligible employees 101-125 eligible employees 126-150 eligible employees 151-175 eligible employees 176-200 eligible employees more than 200 eligible employees		$495 a year $695 a year $995 a year $1295 a year $1495 a year $1995 a year $2295 a year $2495 a year $2795 a year $2995 a year (please call for quote)
	*Each plan also incurs a first-year-only, one-time plan and software customization fee of $500.

60-day money-back guarantee on everything except investments and first-year-only setup fee

Free technical support

Extensive investment choice (self-directed discount brokerage accounts and/or no-load mutual funds for 401(k) Easy; load mutual funds for Advisors 401(k))

Matching contributions, participant loans, automatic enrollment and more are free options

Plan administration software has built-in safeguards against operating a plan in violation of federal regulations

Customers receive updated plan administration software and companion materials every year; updates incorporate government regulatory changes as well as system upgrades

Plan administration software runs on Windows® 95 (and above) and NT systems

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