ERISA Compliance Made Easy

401(k) Fiduciary Compliance

Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. A plan's fiduciaries will ordinarily include the trustee, investment advisors, all individuals exercising discretion in the administration of the plan, all members of a plan's administrative committee (if it has such a committee), and those who select committee officials. A fiduciary's responsibilities include:

  • Acting solely in the interest of plan participants/beneficiaries, with the purpose of providing benefits to them
  • Carrying out their duties prudently
  • Following the plan documents (unless inconsistent with ERISA)
  • Diversifying plan investments
  • Paying only reasonable plan expenses

Managing an employer-sponsored retirement plan is usually not a top priority for the HR Manager, CFO, CEO or other individuals tasked with the job of plan governance. However, managing a retirement plan involves personal liability (for decision makers), a risk that can be mitigated if a prudent plan management process is implemented. Oftentimes, it is assumed that the service providers are the ones assuming the fiduciary risk and, unfortunately, this is seldom the case.

As a financial counselor, we will work with you to create a comprehensive plan that helps to support your company through your fiduciary compliance duties and create a comprehensive plan for the ongoing support of your 401(k) Plan.

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