As an employer sponsoring a 401(k) plan, you’re tasked with a great amount of responsibility. When it comes to requirements like choosing proper investment options, understanding distribution regulations, and properly filing government reports, many business owners are pushed out of their comfort zones. Luckily, no one expects you to know how to do it all. In fact, under ERISA rule 401a1B, plan sponsors are required to hire “prudent experts” to assist in areas where they lack competency to fulfill their Fiduciary duties.
In the past, business owners often chose to work with professionals whom they were already doing business with, like their insurance agent or CPA. Unfortunately, hiring a generalist to oversee your 401(k) plan doesn’t really help you meet your Fiduciary requirements. Some plan sponsors choose to work with multiple specialists, but are then tasked with pulling it all together, ensuring that each professional meets his or her fiduciary responsibility and that everyone is charging reasonable fees. There’s now a better way.
Hiring FiduciaryShield as your full-service outsourced Administrative Fiduciary gives you the peace of mind in knowing you have a partner who will ensure you’re meeting all your obligations. By bringing everything under one umbrella, you’re leveraging the power of prudent experts, while keeping your costs under control. Here are five of the most important services you’ll receive.
1. Plan Documentation
Plan documentation services include a review and interpretation of your current plan documents and notification of any observed plan irregularities. We will hep you administer your loan policy and maintain your plan documents in accordance with Department of Labor (DOL) and IRS requirements.
FiduciaryShield reviews your Fidelity bond to ensure it meets ERISA requirements and will help you maintain the proper Fiduciary insurance.
2. Distribution Requirements
Plan sponsors are ultimately responsible for properly processing 401(k) distributions. This may include:
- In-service or hardship withdrawals
- Loan requests
- Distributions due to separation from service
- Qualified domestic relations orders (QDRO)
- Required minimum distributions (RMD)
- Corrective refunds
We review all requests before you sign off on them, helping to ensure you stay in compliance.
3. Participant Management Services
FiduciaryShield helps you keep track of employee eligibility and vesting schedules. We will monitor loan defaults, review deferral suspensions due to hardship withdrawals, and help you find terminated participants when necessary.
4. Notice and Disclosure Requirements
Plan sponsors are tasked with multiple disclosure requirements including:
- 404(a)5 annual notifications
- Safe harbor notices
- Annual Qualified Default Investment Alternative (QDIA) notices
- Summary of material modifications
- Summary of annual reports
FiduciaryShield keeps track of your deadlines and helps ensure the proper notices reach your employees on time.
5. Government Reporting Assistance
Properly submitting your government reports is a critical part of 401(k) plan administration. We help make this easy by preparing your IRS forms 5500 and 8955-SSA.
We also reconcile your plan year end to verify you’ve met your annual employer contribution requirements and run profit sharing calculations.
Experience the Difference of Working with an Outsourced Administrative Fiduciary
Your 401(k) plan should be more of a benefit than a burden. Are ready to outsource your plan administration so you can get back to doing what you do best? FiduciaryShield gives you the freedom to do just that. Contact us today to learn how we can help you offer A Better 401(k).