Understanding 401(k) Plan Fiduciary Responsibilities

In a recent study, 70% of the 800 plan sponsors polled did not recognize themselves as plan fiduciaries. It is critical that plan sponsors understand that they are indeed fiduciaries and that they further understand the responsibilities associated with this in today’s 401(k) environment.  

One basic fiduciary duty is that of understanding and maintaining your plan’s Adoption Agreement. This documents serve as the foundation for plan operations, detailing the full range of provisions such as participation requirements, contribution options and vesting schedules. Employers and their representatives should be familiar with these provisions and how they are applied. 

Many plan features are document specific and can be updated to better suit participant and plan needs as circumstances change. Periodic reviews are also necessary to ensure that the plan is operating per its current provisions. 

If you would like to review any of the features of your plan documents or have questions regarding their application or potential revision options, Legacy can help.