Are you managing your company’s 401(k) with limited or no support? Sponsoring a retirement plan can be time-consuming and complicated. And, the company 401(k) places legal responsibilities on you as the plan’s fiduciary.
Under ERISA rules, plan fiduciaries must act as prudent experts. That means exercising a high standard of care when it comes to selecting service providers, choosing investments, and administering the plan.
As a 401(k) advisor, I not only take work off your plate, but I also help to reduce your liability by taking on a fiduciary role. Bottom line, my biggest responsibility is to identify and mitigate your personal liability risk while helping to empower your employees to build assets for their retirement.
Below is a comprehensive schedule of the support that I would provide as your advisor.
Fiduciary Assessment and Compliance Oversight
With your schedule, you probably don’t have time to become a 401(k) expert. I help to coordinate and communicate with members of your finance, HR, and ownership teams regarding items that need to be addressed from a compliance standpoint.
Employee Education and Communication
Employee participation is a key measure of a plan’s success. I help participants understand the plan, along with the investment options offered in the plan. Partnering with Vanguard, we are available to field employee questions relating to the plan or personal finances.
ERISA requires prudent selection and monitoring of those 401(k) investments. A 3(21) investment adviser is a co-fiduciary role, whereby I provide advice to you concerning funds on a 401(k) investment menu, and you retain the discretion to accept or reject the advice. A 3(38) adviser would allow me to have the discretion to make fund decisions. Being that I am a fiduciary, I offer both options.
Investor Policy Statement
An Investor Policy Statement (IPS) defines the purpose, objectives, and measures of success for the plan. Once an IPS is created, the investment committee must adhere to it unless it is imprudent to do so. Having an IPS helps to reduce your liability.
Plan Administration Support
Being an expert in all things 401(k) is a tall order. I consult with you on plan design or the implications of an employee match or vesting schedule. The potential administrative advantages as well as the cash flow implications of a safe harbor plan compared to a traditional 401(k). I can also explain how automated enrollment and employee engagement can reduce the need for a safe harbor approach.
At TAMMA, I have designed an entire series of 401(k) best practices devoted to supporting businesses of any size to help you reduce potential liability and provide a plan that best serves your employees.
Again, my biggest responsibility is to identify and mitigate your personal liability risk while helping to empower your employees to build assets for their retirement.
Contact us for more information about any of these best practices or to see how we may better support your company and employees with a low-cost, high service employer-sponsored retirement plan.