Your 401k plan’s investment fiduciary is an important member of your retirement plan team.   A paid professional, an investment fiduciary provides conflict-free investment recommendations to your plan’s sponsor or trustee.

So, can you name your plan’s fiduciary? In fact, you may have more than one.

Whether or not you can identify the persons or institutions who serve as your retirement plan’s investment fiduciary, you should read and understand the following comprehensive explanation of the term from the Department of Labor.  After reading the definition of an investment plan fiduciary, you will understand why your Plan may have more than one.

The Employee Retirement Income Security Act (ERISA) administered by the Employee Benefits Security Administration (EBSA) of the Department of Labor,  protects your investment plan’s assets by requiring that those persons or entities who exercise discretionary control or authority over plan management or plan assets, anyone with discretionary authority or responsibility for the administration of a plan, or anyone who provides investment advice to a plan for compensation or has any authority or responsibility to do so are subject to fiduciary responsibilities. Plan fiduciaries include, for example, plan trustees, plan administrators, and members of a plan’s investment committee.

The primary responsibilities of 401k investment plan fiduciaries are:

  • To run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses.
  • To act prudently and to diversity the plan’s investments in order to minimize the risk of large losses.
  • To follow the terms of plan documents to the extent that the plan terms are consistent with ERISA.
  • To avoid conflicts of interest. (For example, fiduciaries may not engage in transactions on behalf of the plan that benefit parties related to the plan, such as other fiduciaries, services providers or the plan sponsor.)

Whether or not you can name your retirement plan’s fiduciaries, they should be acting in your best interest and avoiding any conflicts.

As always, Strategic Wealth Planning is ready to answer any questions you may have, whether as a company owner or plan participant.

Call 214.727.6000 today to speak to one of our experienced retirement plan advisors.