Eight 401(k) Commandments

If your company administers a 401(k), or you provide advice to clients who have retirement plans, then listen up! Here are eight commandments you should follow if you are knee-deep in the 401(k) swamp.

1. Offer plan participants the option of changing their accounts on a daily basis through an 800 number or the Internet.

2. Don't offer too many investment options.

3. Offer investment advice only if it's independent.

4. Fully document any change in investment advisers.

5. Craft a carefully worded strategic investment strategy explaining the plan's objectives, and distribute it to participants.

6. Avoid doubletalk, such as policy statements that don't include esoteric or language that is not easily understood.

7. Get an ERISA compliance audit by an attorney or consultant who specializes in the law.

8. Select a group of employees, including plan participants, to be the plan's fiduciaries.


Already a member? log in here.

Editor's Choice

Upcoming CPE Webinars

Nov 24This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Dec 3The materials discuss the concepts and principles in the AICPA’s new special purpose framework.
Dec 9A key component to improving your firm’s workflow efficiency while enhancing your profitability at the same time is how you leverage emerging technologies.
Dec 9Kristen Rampe will cover how to diffuse the tension in challenging situations in this one-hour webinar.