Your 401(k) Plan Review Checklist
Is your 401(K) investment representative also a fiduciary?
G.L. Smith & Associates (GLSA) is a Registered Investment Advisor and a co-fiduciary of your plan. Only fiduciaries are held to the highest standard to act prudently and solely in the interest of the plan’s participants and beneficiaries. Additionally, as a fiduciary, GLSA is allowed to provide investment advice to participants. (Non-fiduciaries are only allowed to provide investment education to participants, which excludes participant specific advice.)
Is your investment selection properly diversified and suitable for your plan’s participants?
As a plan sponsor or trustee, you are responsible for selecting the plan’s investment menu. As part of our fiduciary service, GLSA recommends, monitors, and evaluates investments for performance and cost.
Is the Qualified Default Investment Alternative (QDIA) for your plan compliant?
Many plans still have not updated their QDIA even though the current regulation went into effect in December 2007. GLSA will help choose an appropriate QDIA for the plan that is in compliance with existing regulations.
Are all plan fees fully disclosed and reasonable for the level of quality and service?
This disclosure is a mandate by the Department of Labor. As a fiduciary, the Plan Sponsor has to justify that all plan fees and costs are reasonable. GLSA fully discloses to the Plan Sponsor all plan expenses. Also, by providing investment advice, the level of service provided to the participant is increased.
Are you providing regular meetings with participants to update information and to help them make informed decisions (education vs. advice)?
GLSA offers group meetings to provide updated investment and 401(K) plan information to the Sponsor and to participants annually, or as requested.
Are all documents current and in compliance with recent ERISA guidelines?
Our annual document maintenance is provided by a Third Party Administrator. In addition, all plan documents are kept up to date and in compliance with ERISA guidelines.
Learn more about using GLSA to help with 401(K) planning and management. Contact us today at (256) 539-4805 to learn more or to receive a free consultation.