While a 401(k) financial advisor is not required to offer a company-sponsored retirement plan, a competent one can really help in several key aspects. They not only take work off your plate, but can also reduce your liability by acting as a fiduciary.

401(k) Financial Advisor Responsibilities

Helpful 401(k) financial advisors can take on any or all of the following responsibilities:

  • Develop the plan documents and consulting on plan design
  • Select recordkeepers and TPAs, including running RFP processes if required
  • Act as an investment manager who selects and monitors the plan’s mutual fund investments. Depending on the relationship, that 401(k) financial advisor may or may not be a fiduciary. (Read about the difference between a fiduciary and a broker here, and about 3(38) fiduciaries here)
  • Provide advice and answer compliance questions
  • Assist employees in 401(k) investment selection and financial advice
  • Make your life easier by giving you and your staff more time to focus on your business
  • Provide a 3(16) fiduciary who takes on plan administration services and signs the Form 5500
  • Assist with annual large plan audits and Department of Labor audits
  • Provide technology enabled 401(k) financial advisors that will integrate your 401(k) recordkeeper to your payroll system, reducing your administrative workload