Including these will make 401k plans safer for plan sponsors and more successful for plan participants.
Tag "plan sponsor"
Perhaps, just as plan sponsors have developed onboarding programs for new hires when it comes to saving for retirement, maybe they should add âunboardingâ programs as a bookend for those nearing retirement.
Whether a plan sponsor decides to adopt a 401k IPS remains an open question. Itâs not a question that should be treated casually. Every plan situation is different. Plan sponsors therefore must conduct a thorough due diligence to determine whatâs best for their plan.
Although weâve seen a broader acceptance of using an IPS, their use is by no means universal and particularly lacking among smaller employers. Perhaps thereâs a realization that, if you donât get the IPS right, youâll only increase your liability.
Not being able to easily monitor how former employees apply these tools, however, can increase the fiduciary liability of plan sponsors.
Just as summer changes into fall, Reg BI will change the way all participants â investors, service providers, and 401k plan sponsors â interact with each other. These are the changes we might expect.
Here’s quick read with a surprise reveal. Can you find it?
Thereâs always something new under the sun, and that means thereâs always educational topics 401k plan sponsors should be asking about but arenât. Hopefully, this list will inspire more curiosity and lead to better informed employees.
The One Topic Every 401k Plan Sponsor Must Know Right Now: Fiduciary Education Curriculum (Part III)
Most 401k plan sponsors will readily admit they are not experts when it comes to retirement plans. They understand they have a role in the process. They understand that role carries with it certain fiduciary obligations. They understand (and accept) that role also exposes them to liabilities. This article shows how prudent delegation can mitigate much of that fiduciary liability.
There are two strategic paths to use when it comes reducing liability. One approach occurs after the fact â after the target date funds are already in place. The other approach takes place before the target date funds are even placed on the 401k plan menu. Which is more reliable?
