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Questions to ask to make sure you have the right advisor for your company retirement plan


  • Has your advisor informed you about plan sponsor obligations under 408(b)(2) and 404a regulations that went into effect on July 1st?
  • Is your advisor providing fiduciary education to help you understand the nature and scope of responsibilities and potential liabilities under the new DOL regulations?
  • Does your advisor provide procedures to help you address selection & monitoring of service providers, selection & monitoring of plan investments and administration & reporting?
  • Does the plan have the right mix of investment options delivered at a fair cost?  What is the average expense ratio of the funds available in your current platform?
  • Have you received all of the 408(b)(2) fee disclosures from  your service providers, e.g. recordkeeper, third party administrator, advisor?
  • How do you know if the fees are reasonable?
  • How will your advisor help you with the 404a participant fee disclosures?
  • How are your employees being informed about new fee disclosures?
  • Is your advisor a 3(21) fiduciary on your plan?
  • Will your advisor be able to provide investment advice to employees versus education under the new regulations?
  • Will your advisor be coordinating the IPI (Important Plan Information) and ICC (Investment Comparative Chart), reports that are required for distribution to employees under 404a by August 30th?

 

Disclosure: The posted information is for informational purposes only. This message does not constitute an offer to sell or a solicitation of an offer to buy any security. All opinions and estimates constitute Karp Capital's judgment as of the date of the report and are subject to change without notice. Accordingly, no representation or warranty, expressed or otherwise, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or timeliness of the information contained herein. Securities offered through Infinity Securities (a registered broker-dealer, member FINRA, SIPC). Infinity Securities and Karp Capital Management are not affiliated companies.

 

 

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