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Critical questions for plan sponsors: Is your plan 404(c) compliant?

Section 404(c) provides some protection for plan fiduciaries related to the investment decisions that individuals make in participant directed retirement plans. For plans that are completely participant directed, by complying with the rules of 404(c), plan sponsors are relieved of some liability for what may be seen as poor investment decisions by the individual participants.… Continue reading →

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Critical questions for plan sponsors: Have plan documents been read and understood by plan fiduciaries?

The plan documents are the governing documents that describe how a plan should operate. It’s important for plan fiduciaries to read all documents so they understand what they can and cannot do as well as what they’re required to do. If the documents aren’t read, it would prove difficult to know what is and isn’t… Continue reading →

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Critical questions for plan sponsors: Are employees receiving advice specific to their situation?

A recent study by the International Foundation of Employee Benefit Plans shows that by instituting a financial education and advice campaign, 42 percent of employees have a better understanding of the benefit, allowing them to make the most of it and become more satisfied and productive employees. Education can also have a bottom line impact… Continue reading →

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Critical questions for plan sponsors: Do you have written record of the plan minutes and documents?

Written records of retirement plan minutes and documents are essential because if something is not in the file, then technically it didn’t happen. So, if the IRS or the Department of Labor comes knocking at a business and asks about the plan, or why the retirement plan committee has made certain decisions, plan minutes are… Continue reading →

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Critical questions for plan sponsors: Who is a fiduciary?

In addition to knowing who the plan fiduciaries are, it’s important to recognize if you are a fiduciary. So, who can be a fiduciary? A fiduciary could be a business owner sponsoring a retirement plan, the named trustee of the plan, and/or retirement plan committee members, which we’ve previously noted. To take this one step… Continue reading →

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