There are so many articles for plan sponsors (I\u2019ve written quite a few) where they go on and on about what plan sponsors need for a successful 401(k) plan.<\/p>\n
Rather than go into a whole diatribe, here is a Reader\u2019s Digest of what good 401(k) plans have:<\/p>\n
1. The leadership of the 401(k) plan understands their duty as plan sponsor and plan fiduciary.<\/p>\n
2. A third-party administrator (TPA) who does a competent job in plan administration.<\/p>\n
3. A financial advisor who understands the retirement plan business and understands that their real role is minimizing the plan sponsor\u2019s liability.<\/p>\n
4. A plan design that fits their needs, goals, and pocketbook.<\/p>\n
5. An investment lineup that isn\u2019t too large that it increases participant confusion which depresses the rate of salary deferrals.<\/p>\n
6. Communication and technology that will get plan participants more engaged which would lead to higher participation.<\/p>\n
7. A review of costs and plan providers to make sure what works still actually does work.<\/p>\n
8. An ERISA attorney on call when they need them.<\/p>\n
9. An auditor (when the plan needs an audit) that gets the job done competently and ahead of any Form 5500 deadline.<\/p>\n
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