401(K) FAQS

What is a 401k Fiduciary?

A 401k Fiduciary is an advisor that is legally obligated to provide advice in the best interest of the clients. In this case it brings a  more objective approach to the company's entire retirement plan as a whole. As a Fiduciary. We can ensure that your recordkeeper and vendor is operating in your best interest.

What is Fee Analysis?

We conduct an analysis on your retirement plans fees. These fees do not simply include admin costs but mutual fund costs from the plan menu as well.

What is a Diversification Analysis?

We conduct an analysis on your plans investment menu to ensure there are no highly correlated fund pairs. The last thing you want is one mutual fund to be identical to another one. 

What is Plan Benchmarking?

We make sure your plan ranks competitively with your peers across the nation. Besides benchmarking for performance, we also benchmark your plan provider themselves because customer service and plan platform performance matters.

What are 3-year Morningstar Rankings? 

Typically the best performing mutual funds for a 401k plan has ratings such as : expenses, fund size and fiduciary rating. This is important to consider because it is a violation of fiduciary duty to have underperforming funds in the plan.

What are Recordkeeper Proprietary Date Funds?

Plan providers do not consider your best interest when providing you an investment menu. They get paid extra on the backend to offer you their own target date funds with bloated expense ratios. Fiduciaries help find the best ones in the market.

What are your fees?

There have been several instances where we have determined fees can be different for every company's plan based on the services it needs. However on average, fees are typically .1-.2% of current assets annually. This of course could be organized to be billed quarterly from the current assets.

Are you a financial advisor?

Yes we are advisors, however the biggest difference is the fiduciary factor. Most advisors take hidden commisions for their work. Commissions can affect how advice is provided.

What is a 401(K) Plan Provider?

A plan provider is the company providing you the 401k plan itself. This typically comes with an online platform for employees to login to along with plan administration tools for you as the plan sponsor.

What is 404 (c) Compliance?

Even when participants have full control of investment decisions, plan fiduciaries could still be responsible for participant investment choices. Fortunately, plan fiduciaries do have an option that offers certain protections

What is 401k SafeHarbor?

A safe harbor 401(k) plan ensures all eligible plan participants receive an employer contribution. In exchange for making the fixed employer contribution, employers get a “pass” on 401(k) non-discrimination testing (one of the checks the IRS puts on 401(k) plans to ensure they’re equitable to all employees).