…proactively addressing fiduciary oversight and administrative complexities, advisors can differentiate themselves in a competitive landscape. Offering 3(16) fiduciary services not only enhances their value proposition but also aligns their interests with optimal client outcomes—demonstrating a commitment to fiduciary excellence, regulatory best practices, and placing client…
…owners who sponsor retirement plans for employees as “3(16)” fiduciaries under federal law [ERISA Section 3(16)]. A 3(16) fiduciary is responsible for ensuring the plan is operated in compliance with the rules of ERISA day in and day out. One can say, the ERISA “buck…
…is on the participant to determine in which plan the excess was created and notify the plan administrator of the amount of excess deferrals allocated to the plan. Many plan documents include a provision that imposes a plan administrator notification deadline. IRC Sec. 402(g)(2)(A)(i) permits…
…popularity, including the newest arrangements that credit interest based on market performance. The plan design discussion should no longer be limited to picking between one or the other—DB vs. DC, but, potentially, a combination of DB and DC. Why not have the best of both…
…many of the day-to-day administrative duties to a 3(16) fiduciary services provider. A 3(16) Plan Administrator is the fiduciary who manages the day-to-day administration of a retirement plan, not only performing traditional Third Party Administrator (TPA) services, but accepting responsibility for ensuring that they are…
…the plan, the ultimate amount available to the participant is determined by the account’s investment growth. The participant typically directs the employer (or plan administrator) to invest the assets among the options made available in the plan, and the growth depends on how those assets…
…have the plan design conversation? Cash Balance 101. Our virtual classroom is open and we want to provide you with the knowledge you need! Core Curriculum Plan Design best practices Strategic selection – which clients may be the best fit and why Talking points for…
…the plan. The named plan administrator is responsible for many things including: making sure eligibility is determined correctly, making sure that a number of required notices and mailings go out every year, making sure that plan-related payroll is properly processed and more. They are also…
…staff. Another approach involves outsourcing all retirement plan administration. Third-party administrators (TPAs) can be hired to provide nearly all the services that are needed to effectively run a plan. This strategy can relieve plan sponsors from nearly all the daily administrative tasks that a plan…
…employer matching contributions to eligible employees when an employer miscalculates an employee’s compensation. The IRS urges plan sponsors to contact their plan administrator to ensure they have “adequate and sufficient” records about employment and payroll because, in many cases, the problem is caused by failing…