Does your 401(k) plan need a tune up or at least an inspection?
Did you know that most plans are in need of repair and possible yours too? It’s not entirely your fault though! See, as a company grows (or changes) so do the demands and needs of both the plan structure and the corresponding participants. If we know anything about life, change is inevitable. The core components of a 401(k) plan need to be monitored and benchmarked against industry averages on a recurring basis.
More importantly, as a company providing a 401(k) plan, the Department of Labor states that it is your responsibility as a Plan Fiduciary to ensure your plan is in the best interests of participants, that the plan is compliant, and the overall plan fees are “reasonable”.
In our experience, here are the four key areas where 401(k) Plans come up lacking.
35% – Lack of Participant Education or Service
30% – Plan Fees
20% – Non Compliance
10% – Plan Performance
5% – Other
Remember, as a Plan Fiduciary (which all companies that offer 401(k) plans are) you are required to make sure the plan you offer is in the best interest of participants. Contact Alphamint today to learn more about a complimentary 401(k) evaluation which will benchmark your plan to the industry averages, and fulfill part of your fiduciary obligations.