“If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.”

– Benjamin Franklin

Fiduciary Responsibility For Employers & 401k Plans

If you own a business or are responsible for the retirement plan of a business such as 401(k) plans, 403(b) plans, profit sharing plans, money purchase plans, or other types of defined contribution plans than you take a personal fiduciary responsibility for the suitability of that plan. In short this means that you guarantee the investment, ERISA complaince and record keeping suitability for the plan. This also means that you can be found personally liable if the plan were to be considered not suitable or too costly for employees. At Elysien Private Wealth we educate employers and plan sponsors on the intricacies of their fiduciary responsibility and how to mitigate that responsibility by using a 3(38) investment fiduciary that will providing the utmost care and cost effective retirement solutions for employees.

Who is a 401k Plan Retirement Fiduciary

A fiduciary is any person or entity named in the 401k plan document, any person or entity that has discretionary authority over the management of the 401k retirement plan or it’s assets: including any individual who has discretionary authority over the administration of the401k plan, all members of a 401k plan’s administrative committee or those who have selected committee officials and all people or entities that provide investment advice on behalf of the 401k plan for a fee. Anyone who has the authority to appoint a fiduciary is in fact a fiduciary for that 401k plan under ERISA law. This may make you personally liable for aspects of the plan that you do not have an expertise in. In these cases, you will want to hire professionals to carry out the investment and administrative functions of the 401k plan.

Not All Fiduciaries Are Equal

Many 401k plan providers will generate a “fiduciary warrant” or a “fiduciary guarantee” that attempts to hide the 401k providers true fiduciary responsibility to the 401k plan. In many of these cases, the contract will either explicitly say that the 401k provider does not take fiduciary responsibility for the 401k plan or the contract is constructed to greatly limit the fiduciary responsibility of the 401k providers responsibilities. At Elysien Private Wealth we service 401k plans that require full ERISA 3(38) and 3(21) fiduciary oversight. Our oversight and fiduciary responsibilities are outlined specifically in our contract and we accept full ERISA 3(38) investment fiduciary liability for your plan. If your current provider does not specifically outline the nature of their fiduciary responsibility in your contract, there is a good chance they are avoiding doing so for a reason.

Suitability Versus Disclosure

We help 401k plan sponsors, 401k plan trustees and human resource departments understand the true suitability standards that 401k plan fiduciaries face. For 401k plan fiduciaries, suitability is the benchmark, not disclosure. We assist 4011k plan sponsors with the investment tools and resources needed to properly maintain a suitable fiduciary responsibility to the 401k plan, while mitigating their liability as a 401k plan sponsor.

Educate, Advise & Monitor

Our job as your 401k retirement plan advisor is not only to find the most suitable investment vehicles for your 401k plan, but to also educate you and your employees about the 401k plans benefits, monitor401k plan investment performance on a rolling basis, provide ongoing advice regarding investment options and maintain the 401k plans legal compliance with federal ERISA law. At Elysien Private Wealth, we go beyond the normal functions of a 401k plan fiduciary, as we also assist 401k plan sponsors with enrollment meetings, employee education, and maintaining a fiduciary checklist for the plan. We also provide access to TPA’s, record-keepers, trust companies, payroll firms and other important partners for the health of your employee benefits program.



Contact us For Our Free Report – Retirement Fraud & The Killer Pension Plan

This report goes over all the exposure to liability business owners and employees face from the new ERISA guidelines, lawsuits and the Department of Labor. Contact us for our free report on how you can start to protect your business right away. Just submit the mini contact us page and message “retirement report” and we will email you your free copy.

Watch Our Special Report – The Truth Behind The Hidden Costs of Retirement Plans.


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