Retirement plans are similar to homes. They also are a cornerstone of the American dream. Retirements plans are generally implemented to save money for employees for their retirement. Like homes, our government encourages retirement savings by offering tax deductions to employers that sponsor and contribute to them while also offering tax deferrals on a participant’s retirement savings until distribution at retirement. The tax benefit comes at a huge cost because the retirement plan must go through important compliance testing so that the plan doesn’t discriminate in favor of highly compensated employees. The problem with retirement plans is that most of the dangers to the plan sponsor as a plan fiduciary are hidden and if the plan sponsor doesn’t surround themselves with the right retirement plan providers, they run the risk of breaching their fiduciary duty. Unfortunately for plan sponsors, they don’t often realize their duties as a plan fiduciary until after they breached them, So this article will try to illustrate the hidden dangers of retirement plan sponsorship and how they can be prevented.
Like your home many of us take for granted the responsibilities of ownership, you must maintain and update over time. With the proper guidance your company retirement plan can help you and your employees to a successful retirement.
Please comment or call to discuss how to be sure your plan is efficient.
- Things employers should tell employees about their retirement plan as new participant fee disclosure rules come into effect (401kplanadvisors.com)
- Starting A 401(k) Plan: 5 Things You Need To Know (401kplanadvisors.com)
- The Next Generation Retirement Plan. (401kplanadvisors.com)