Frequently Asked Questions
Your Role as a Plan Sponsor
- What does it mean to be a plan fiduciary?
- Who in my company is considered a fiduciary?
- Can I delegate fiduciary responsibility to someone else?
- Do we need a retirement plan committee?
- What records should a fiduciary keep?
- What are my main responsibilities under ERISA?
- What does a prudent process look like?
- What happens if we don't follow the plan document?
- What is the difference between a settlor decision and a fiduciary decision?
- Can I be held personally liable for my company's retirement plan?
- How do fiduciaries address their exposure?
- Is fiduciary liability insurance the same as the ERISA bond?
- What is a prohibited transaction?
- What is the difference between a 3(21) and a 3(38) investment fiduciary?
- Which one is right for my plan?
- Does using a 3(38) remove all my responsibility?
- Is a 3(16) administrator the same thing?
Plan Fees and Costs
- How do I know if my plan's fees are reasonable?
- What are the main types of plan fees?
- How often should we benchmark fees?
- What is an expense ratio?
- Are lower fees always better?
- Who actually pays for a 401(k) plan?
- What is revenue sharing?
- Can plan expenses be paid from plan assets?
- What is a revenue credit or ERISA spending account?
- What is fee benchmarking and why does it matter?
- Do we have to switch providers if our fees are above the benchmark?
- Who performs a fee benchmark?
- How is benchmarking different from the 408(b)(2) fee disclosure?
- Do we need to put plan services out for bid?
Investments and the Plan Menu
- Who is responsible for choosing the plan's investment options?
- What is an investment policy statement?
- What happens when a fund underperforms?
- What is a QDIA?
- What are the common QDIA types?
- Do we have to use a QDIA?
- How often should a plan's investments be reviewed?
- What should an investment review cover?
- Who should attend investment review meetings?
Compliance and Administration
- What is nondiscrimination testing, and why might my plan fail it?
- How can a plan reduce the chance of failing these tests?
- What happens after a failed test?
- What is Form 5500, and does my plan need an audit?
- What is the difference between a large plan and a small plan filing?
- What triggers the audit requirement?
- How quickly do employee contributions need to be deposited?
- What counts as a late deposit?
- What do we do if we made a late deposit?
- What is a fidelity bond, and does my plan need one?
- How much bond coverage is required?
- Who needs to be covered by the bond?
Working With an Advisor
- What does a retirement plan advisor actually do?
- What is the difference between a bundled and an unbundled arrangement?
- Is an advisor required to run a plan?
- How are advisors typically compensated?
- What is the difference between plan-level and participant-level advice?
- How is a fiduciary advisor different from a broker or my payroll provider's representative?
- How do I find out if my current advisor is a fiduciary?
- Why does the fiduciary standard matter to my plan?
- What questions should I ask a prospective advisor?
- We already have a plan and an advisor. Is it hard to switch?
- Will switching advisors disrupt our participants?
- What should we look for when comparing providers?
- When is a good time to review our advisor?
- Will changing advisors create a gap in fiduciary coverage?
Plan Design and Getting Started
- What is the difference between a 401(k) and a 403(b)?
- Is a 403(b) always subject to ERISA?
- Can a nonprofit offer a 401(k) instead of a 403(b)?
- We are a small business. Is sponsoring a plan worth it for us?
- What are the main costs of running a plan?
- What plan types fit small businesses?
- What is a safe harbor 401(k)?
- What are the employer contribution options in a safe harbor plan?
- Are there notice requirements for a safe harbor plan?
NOTICE OF DISCLAIMER Investment advisory services offered through Global Retirement Partners, LLC, dba Retirement Impact, LLC, an SEC registered investment advisor. Global Retirement Partners, LLC (GRP) dba Retirement Impact, LLC is not a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only, and is not intended to constitute legal or tax advice as to an organization's or individual's specific circumstances. Subsequent developments may result in this information becoming outdated or incorrect. It is your obligation to seek current information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization's specific situation in light of your or your organization's particular needs.
NOTICE OF DISCLAIMER Investment advisory services offered through Global Retirement Partners, LLC, dba Retirement Impact, LLC, an SEC registered investment advisor. Global Retirement Partners, LLC (GRP) dba Retirement Impact, LLC is not a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only, and is not intended to constitute legal or tax advice as to an organization's or individual's specific circumstances. Subsequent developments may result in this information becoming outdated or incorrect. It is your obligation to seek current information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization's specific situation in light of your or your organization's particular needs.