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Fiduciary Planning: A Checklist


By: Kelly McGrath


October 15, 2018


Understanding your role as a Fiduciary on your 401k Plan

We are an advocate for our clients providing clear and comprehensive advice, emphasizing plan education, risk mitigation and plan growth in order to meet our clients’ long-term objectives. We understand that business owners are busy running their companies and not in the business of running a retirement plan. The Department of Labor has come down hard on retirement plans with new rules and regulations, putting more liability on the business owners and plan sponsors. Our goal is to not only create a healthy retirement plan for employees, but to also protect our plan sponsors from unnecessary risk and liability by offering a comprehensive fiduciary outsourcing solution.


What you need to know as a Fiduciary


Basic Fiduciary Duties


Overseeing Investments


Consider engaging an independent fiduciary to help monitor the appropriateness of all investment options. We encourage our plan sponsors to hire a 3(38) Fiduciary that takes over this role and take discretion on the fund lineup. They are incentivized to keep expenses down and to have better performing funds.


Overseeing Service Providers


We conduct a plan benchmark annually to make sure our fees, as well as our providers’ fees, are in line with the size of your plan.


Helping Participants


Consider conducting educational meetings and providing general financial/investment information. Consider using automatic enrollment with a qualified default investment alternative (QDIA). We provide regular education meetings that do not only talk about the 401k plan, but also relevant topics that further educate participants.


Plan Administrator Basics


The administration of the 401k plan can be outsourced to a 3(16) Fiduciary which takes on the role as plan administrator, including signing the 5500, tracking eligibility, approving loans, payroll submissions and overall keeping the plan compliant from an administrative standpoint.


Fiduciary Liability / DOL Audit


This sounds like a lot….

If the administration of your 401k plan feels overwhelming and the fiduciary responsibility is too daunting, IBTX and IronOak Partners can bring you an enterprise of Wealth Management solutions, helping you mitigate risk as well as outsource the administration so you can spend your time and resources running your business, not running a 401k plan.

Posted by in Blog, Wealth Management

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