Over the years a lot of attention has been focused on the selection and monitoring of the funds being utilized in 401(k) plans.  It is important to remember all 401(k) plans have to adhere to 3 regulatory components:

1. Internal Revenue Code

2. ERISA

3. Plan Documents

As a result, IRS audit and DOL investigation statics show a large number of plans have some type of operational defect or fiduciary breach at the time of an audit or investigation.  These operational and fiduciary defects fall outside the realm of the investment selection and monitoring process.

Plan sponsors should be aware of the various options available to them to fix an operational defect or fiduciary breach once discovered.  The attached 401(k) fix it guide is designed to assist plan sponsors and advisors in identifying the defect and identifying the correct method to correct the defect.

Even though the attached document is dated in 2014, the basic method of correction is still available.  The actual process and associated fee may have been altered since 2014.  It is important to remember an operational defect or fiduciary breach is much better to fix before an IRS audit or DOL investigation occurs.

Download this convenient resource to help you find, fix and avoid mistakes.