Fiduciary Guidance

As the owner of your company, you inherently have a legal liability to your employees if you operate a company sponsored retirement plan such as a 401k.  This means that you are responsible for:

  • Acting solely in the best interest of plan participants (and beneficiaries)
  • Hiring professional service providers for areas in which you don’t have expertise
  • Ensuring that Prohibited Transactions are not taking place
  • Following the terms of your Plan Document and Investment Policy Statement
  • Providing a diversified menu of investment options to reduce the risk of large investment losses
  • Providing investment education to employees
  • Depositing employee contributions (deferral and loan repayments) in a timely manner
  • Submitting all required reports and disclosures to employees in a timely manner
  • Hiring and Monitoring service providers
  • Ensuring that all fees within the company plan are “reasonable”

Although this information may seem daunting, we can help you develop a process that addresses these important areas.  By virtue of having an ongoing process in place, you effectively minimize the risk that you have as a fiduciary.

However, it’s very important for you to know that:

YOU CAN NEVER COMPLETELY ELIMINATE YOUR FIDUCIARY RESPONSIBILITY.  

There are three areas though in which you CAN eliminate fiduciary responsibility.  And those are investment selection, management, and replacement. Here at B.E.S.T. Wealth Management, we will serve as an ERISA 3(38) Investment Manager for you which means that:

WE AGREE IN WRITING TO TAKE ON FULL FIDUCIARY RESPONSIBILITY FOR INVESTMENT SELECTION, MANAGEMENT, AND REPLACEMENT.

Although you are relieved of your fiduciary responsibility of these tasks, you still have the fiduciary responsibility of hiring and monitoring the Investment Manager.

If you have any questions about our Fiduciary Guidance services feel free to Contact Us.

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