Are you a Fiduciary? Better Check Again
Every 401k plan will need to have a representative of the company listed as what’s called the plan “Administrator or Sponsor”. With this title comes some responsibilities, that if not performed in compliance with the law, can expose the representative to be held personally liable, regardless of whether you are an owner or employee.
401ks or Defined Contribution Plans, are the future of retirement moving forward. With pension plans and Social Security grossly underfunded there will be more and more emphasis on the proper administration of 401k plans, as the retirees of tomorrow will rely more and more on their 401k and IRA to fund their lifestyle.
In the past, these plans have been focused on assisting in the recruitment and retention of staff, however it’s more important than ever to ensure you are as a minimum following the highlights below:
- Identify who the plan fiduciaries are
- Employee Education Plan
- Fee Review Process
- Are you aware of the contribution schedule?
- Review of Third Party Providers
- Do you have a Fidelity Bond?
Our group can assist you with both ensuring you meet your fiduciary requirements and even share in the fiduciary burden. I’d welcome the opportunity to provide some greater details.
