Your 401(k) is extremely important to your future and you need to be proactive to ensure that your 401(k) is well managed. The U.S. Department of Labor (DOL) issued a list of 10 indicators that your retirement plan may be poorly managed:
–Your 401(k) statement is late or inconsistently delivered
–Your account balance does not seem accurate
–Your employer failed to send your contribution to the plan on a timely basis
–A significant drop in account balance that cannot be explained by normal market fluctuation
–Your account statement shows your contribution from your paycheck was not made
–Investments listed on your statement are not what you selected
–Former employees are having trouble getting their benefits paid on time or in the correct amounts
–Unusual transactions, such as a loan to the employer, a corporate officer, or plan trustee
–Frequent and unexplained changes in investment managers or consultants
–Your employer has recently experienced significant financial difficulty
With some consideration, employers can reduce some of their risks related to the Company’s retirement plan. Some of the initiatives to establish, are as follows:
- Create a plan investment committee
- Ensure proper adherence to the plan document
- Use outside advisors, as needed, such as an ERISA attorney
- Engage an auditor, if your plan is required to do so
Contact Magen Koepp, CPA, with your employee benefit plan questions.