Sponsoring a qualified retirement plan is a pretty convenient way to defer taxes AND offer your employees a valuable benefit. It comes with some hefty responsibilities, too. Among other things, you’re obligated to act in the best interests of your participants, monitor expenses & performance, and make sure everyone’s getting the proper disclosures.
However, to make your life easier ERISA includes six nifty safe harbor provisions. By following a few additional guidelines your plan can qualify for these safe harbors, which relieves you of certain fiduciary responsibilities.
We covered one of the six safe harbors a few weeks back: auto-rollovers. Today we’ll cover another safe harbor: section 404(c). This section has to do with who is responsible for the investment performance in your participants’ accounts.
If you’re responsible for a qualified plan and are curious about how you can limit risk, read on. You’re in the right place.