Offering a retirement plan to your employees is a great benefit and responsibility. If you have the role in your company that oversees the company 401k plan, then you may not realize what responsibility you have. By making decisions about your 401K, you have a responsibility to the participants in the plan. We want to take a moment to outline some of the components of a retirement plan and the role fiduciary responsibility.
Elements of A Retirement Plan:
- A written plan that describes the benefit structure and guides day-to-day operations;
- A trust fund to hold the plan’s assets;
- A recordkeeping system to track the flow of monies going to and from the retirement plan; and
- Documents to provide plan information to employees participating in the plan and to the government.
When it comes to being a fiduciary in a retirement plan, many of the actions involved in operating a plan make the person or entity performing them a fiduciary. Using discretion in managing a plan or controlling the plan’s assets makes that person a fiduciary to the extent of that discretion or control. Providing investment advice for a fee also makes someone a fiduciary. So, a person’s fiduciary status is based on the functions performed for the plan, not just a person’s title.
To learn more about being a fiduciary on a retirement plan, click here.
In addition, our team is willing and able to answer your questions about your company’s retirement plan strategy and to help you create a plan that is successful. If that’s you, let’s talk.read more