Best practices recommend that 401k plan sponsors conduct a periodic, independent, due diligence review of their fiduciary and operational procedures of their 401k plan to determine and document its current state. The due diligence review is a great way to identify areas within the plan that need further attention and support, or to confirm effective management for the plan’s fiduciary file.
Complete all questions to see your score below.
Do you have a 401k plan committee charter and has it been updated in the past 3 years?
Do you have regular pension and investment committee meetings and are proper minutes being drafted and documented from each meeting?
Are all your annual participant disclosure notices—404(a)(5) fee disclosure, Qualified Default Investment Alternative (QDIA) notice, Summary Plan Description (SPD), Safe Harbor and auto-enrollment notices, if applicable—properly getting distributed to employees each year?
Are you conducting fiduciary education for the 401k committee every 2 years to keep members updated on changing regulations and requirements?
Is the selection and monitoring process for your plan investments being conducted by a prudent specialist and getting properly benchmarked?
Do you have target date funds within the plan and have they been analyzed in conjunction with the Department of Labor (DOL) tips and guidelines for reviewing target date funds?
Do you have an Investment Policy Statement (IPS) and has it been updated within the past 2 years?
Are you following best practices for your capital preservation fund and utilizing an effective stable value fund vs. money market fund?
Have your plan costs been reviewed and benchmarked within the past 3 years?
Are you confident you are using the lowest available fund expense ratios across your plan’s investment lineup?
Do you have an Education Policy Statement (EPS) and an effective communication strategy in place for communicating with employees regarding how to best utilize the 401k plan?
Do employees have an investment professional/fiduciary available to help provide education, guidance and advice geared towards helping employees achieve their retirement goals?
All fields required
Corporate Office: 505 North Highway 169, Suite 900, Plymouth, MN 55441
Advisory services offered through Wealth Enhancement Advisory Services, LLC (WEAS), a registered investment advisor. Certain, but not all, investment advisor representatives (IARs) of WEAS are also registered representatives of and offer securities through LPL Financial, member FINRA/SIPC. Wealth Enhancement Group and WEAS are separate entities from LPL. Wealth Enhancement Group is a registered trademark of Wealth Enhancement Group, LLC.
WEAS ADV Part 2A WEAS Supplement to ADV Part 2A WEAS ADV PART 2A Appendix 1
This site has been published for residents of: AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, ND, NH, NE, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY ONLY. By entering, you certify that you are a resident of one of these states. All information herein has been prepared solely for information purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security.
© 2020 Wealth Enhancement Group. All rights reserved.
