Two Hours a Year Can Relieve 401(k) Plan Headaches
The 401(k) plan is only one of many responsibilities of running a business. When the plan gets messy it’s no fun and becomes a distraction— or worse, it feels unnerving.
In as little as one hour, two times per year the plan can become more a strategic part of the overall benefit package and less a potential headache.
When key decision makers invest a small amount of time a couple times per year the plan runs more smoothly, has fewer testing failures, and becomes more appreciated by employees. In short, it becomes a better plan.
The key to success is taking advantage of a proactive plan advisor that coordinates fiduciary level plan reviews with decision-makers. The advisor should:
Schedule and coordinate meeting logistics—making it easy
Prepare a meeting agenda— making it productive
Follow up with a written action plan—making it effective
If an advisor is not making life easier for the sponsor it may be time to reevaluate advisors.