Common Operational Mistakes With 401(k) Plans

One of the key elements of defining a retirement plan standard of excellence is plan governance.  Plan fiduciaries are not only held to the highest standard of care by ERISA, they also are responsible for the operational compliance of the plan.

A lot of focus is placed on the risk of litigation and investments, however the risk of an operational defect is much greater.  Operational defects will not only cost the plan sponsor time and money to fix, but also could take away from the success of the plan in providing adequate retirement benefits for the participants.

This creates an opportunity for an advisor, serving as the retirement plan risk manager, to assist the plan sponsor in avoiding the consequences of the 10 common operational defects outlined in the article shared below.

The following article on the top 10 consequences of careless 401(k) compliance was created by Bloomberg BNA. We share it as a resource to help avoid these operational mistakes.