AI fiduciary traps refer to compliance risks arising from inaccurate, biased, or undocumented AI outputs in 401k plan administration. Do you think the tort bar is salivating over this, waiting for that inevitable misstep?
Tag "Michelle Capezza"
By proactively addressing these critical 401k plan sponsor questions, sponsors can enhance their plans, protect participants, and shield themselves from unnecessary fiduciary exposure.
Advisors do more than plot portfolios. They calm nerves, making them frontline warriors against volatility panic, turning “what if” into “we’ve got this.”
Ironically, while some see lowering the savings limit as politically palatable because it impacts only a small segment of the population, that same fact reduces the effect of such a policy shift.
The fact Social Security was already collecting this information, albeit not in a database, raises the question of whether this new lost and found database will add any real value.
What’s one way 401k plan sponsors can ensure they establish a due diligence framework that can best reduce their fiduciary liability?
Making matters worse is the changing regulatory environment once the new SECURE Act 2.0 rules become effective. The good news is the dust settles after that.
Here the intent is to make it possible for a plan/IRA to apply the QDIA safe harbor to involuntary rollovers. But how will this impact plan participants?
Some costs can’t be negotiated. These relatively fixed costs are the same no matter the size of the plan. Bigger plans can absorb these costs over a larger asset base, meaning the per participant cost is lower.
The central role of the recordkeeper can create reverberations with other providers should the plan sponsor attempt to change recordkeepers. Any hiccup in the employees’ ability to manage their retirement assets can cause problems for plan sponsors.
