The fact is most plan sponsors don't have the time, resources, or tools to do their own 401k plan review, and many of them don't trust their provider. We help them comply with applicable ERISA, DOL and IRS rules and regulations.
Las Vegas, NV (PRWEB) July 20, 2012
401k sponsors must comply with the new ERISA §404a-5 rules for participant fee disclosure by August 30th, 2012 (or 60 days after the plan year beginning on or after 11/1/11). The founders of InvestmentPlan.com recently launched a new 401k review service and want to help plan sponsors meet their ERISA obligations by performing comprehensive fiduciary plan audits and analysis on plan investments.
In 2011 the Department of Labor handed out 1.3 billion in fines from 401k lawsuits and complaints. The DOL also processed 3,472 civil investigations which resulted in $478 million in benefits being restored to plan participants. These complaints and fines are the result of overpriced poor performing investments among other things.
According to ERISA if you sponsor, help manage or exercise any control over a company 401k plan you are a plan fiduciary. 401k plan fiduciaries must follow and comply with ERISA, DOL and IRS guidelines including the new participant fee disclosure rule. 401k fiduciaries may even be personally financially liable for not complying with all applicable rules and regulations.
Under the new ERISA §404a-5 code, plan fiduciaries must provide their plan participants investment related information. The code notes four main areas plan sponsors should be concerned with, 1) specific investment performance data, 2) fees and expense information, 3) an investment related glossary, and 4) website resource information for each plan investment option.
401k plan providers should provide this information to plan fiduciaries, however many providers have failed to do so in a timely manner. The 401k plan review service is designed to help meet the needs of fiduciaries as an independent consultant rather than a plan provider. All Investment Plan services are provided on a flat fee only basis.
401k sponsors can learn more about the firms 401k plan investment review service here, and enter the coupon code "disclosure" upon checkout for a 10% discount, good through July 31st, 2012.