The most trusted provider of liability solutions for small to mid-size 401(k) fiduciaries.


No conflicts of interest. No investments. No administration.



Two Fiduciary Goals

#1    the plan works

#2     don’t get sued

Many fiduciaries think they are the same; a naïve and painful misunderstanding.



Your Tasks, Their Tasks

The plan hires service providers for investments, record keeping, third party administration (TPA).

Fiduciaries retain oversight tasks.

The Department of Labor warns: conflicts of interest prevent service providers from doing oversight tasks.



Your Lawsuits

Tens of thousands of fiduciary suits have been filed. The issues are known.

It’s not about service providers’ task completion.

When their sales reps say, “Don’t worry. We take care of it,” it’s true.

So what gives? Fiduciaries are sued for neglect of fiduciary tasks.



Your Protection

Proof of proper execution of fiduciary tasks protects.

You file a motion for a dismissal, present your proof and it is granted.

Without proof 95% settle because litigation is too expensive and paid personally.



We Provide What You Need

Documents prove your proper execution of fiduciary tasks, fully referenced, transparent, thorough, dated and irrefutable.

We enter data you send us into our software /database. It compares it to other members of our fiduciary community and third party data, red flagging problems.

We download your signature ready documents, review them with you on the phone, and make any changes.

Sign, file and done.

Your total time is about 20 to 30 minutes first year and even faster in subsequent years.

No one does for you what we do that fast, that easy, that simple, that reliable, that affordable, that continually updated and that safe.



You Must Act

ERISA sec. 410(a) forbids anyone from taking a fiduciary’s duty or liability. No one can come to your rescue.

Courts must rule on the preponderance of evidence. You’ll have it.

Courts consistently rule in favor of fiduciaries that use independent third parties for assistance it shows fiduciary prudence. You’ll have it.

Who pays? Your oversight tasks are mandatory, the plan or the employer can pay our fee.

Fiduciary liability lasts six years, even if the fiduciary changes jobs, retires, or the employer is liquidated or sold. We handle this, too.

We are in business simply because the plan’s other service providers may not do what we do. If they did, their work would be disqualified and you would have nothing. They wouldn't do that to you.



Right now

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See our and e-book, A CFO’s Playbook for 401(k) Liability.

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Guidance:

Retirement Plan Name

  • If using a 5500 form - part 2, box 1a
  • If using a 5500 -SF - part 2, box 1a
  • If using a 5500 -EZ - part 2, box 1a

Plan Number

If a plan sponsors more than one plan, it identifies each plan by a three digit plan number (PN), such as 001, 002. The PN can be found on the 5500 form.

If using Form
  • 5500- Part II Box 1b
  • 5500-SF Part II Box 1b
  • 5500-EZ Part II Box 1b

×

Guidance:

Plan Sponsor Name

  • Form 5500 part II, box 2a
  • Form 5500-SF part II, box 2a
  • Form 5500-EZ part II, box 2a
×

Guidance:

Employee Identification Number

    If using Form
  • 5500- Part II Box 2b
  • 5500-SF Part II Box 2b
  • 5500-EZ Part II Box 2b
×

Guidance:

Plan participant

If the only plan participants are owners (and owners' spouses) the tax form used is 5500-EZ. Therefore, if your plan files a 5500-EZ, answer "yes". If it files another type of 5500 answer "no".

×

Guidance:

Number of Participants

  • If using a 5500 form - page 2, part 2, box 6f
  • If using a 5500 -SF - page 1, part 2, box 5c
  • If using a 5500 -EZ - page 1, part 2, box 6b
×

Guidance:

Total Assets

If using Form
  • 5500-Schedule H, part I Box I b
  • 5500-SF Schedule I, part I Box I c b
  • 5500-EZ Part III Box 7 c2
×

Guidance:

Plan year

Use the current year. If you wish to evaluate a prior year's statement, just enter the year.

×

Guidance:

Plan type

    Plan type can be found in either of these documents:
  • 1. The plan document or Adoption Agreement
  • 2. A Summary Plan Description, a document for distribution to plan participants describing the key points of the plan.
×

Guidance:

Plan trustee

    Often the plan sponsor is the trustee. The trustee is named in:
  • 1. The plan document or Adoption Agreement
  • 2. A Summary Plan Description, a document for distribution to plan participants describing the key points of the plan.
  • 3. A document appointing the Plan Trustee.
×

Guidance

Plan administrator

Often the plan sponsor is the administrator. The administrator is named in:

If using Form
  • 5500- Part II Box 3a
  • 5500-SF Part II Box 3a
  • 5500-EZ Part II Box 3a
×

Disclosure Guidance

Disclosure Statements are to be received in time to reasonably be evaluated. The deadline date the first year was July 1st and is expected to be the deadline date each year.


From the regulations

Timing of initial disclosure requirements; changes

(A)

A covered service provider must disclose the information required to the responsible plan fiduciary reasonably in advance of the date the contract or arrangement is entered into, and extended or renewed, except that--

(1) When an investment contract, product, or entity is determined not to hold plan assets upon the covered plan's direct equity investment, but subsequently is determined to hold plan assets while the covered plan's investment continues, the information required must be disclosed as soon as practicable, but not later than 30 days from the date on which the covered service provider knows that such investment contract, product, or entity holds plan assets; and

(2) The information described in paragraph (c)(1)(iv)(F) of this section relating to any investment alternative that is not designated at the time the contract or arrangement is entered into must be disclosed as soon as practicable, but not later than the date the investment alternative is designated by the covered plan.

(B)

(1) A covered service provider must disclose a change as soon as practicable, but not later than 60 days from the date on which the covered service provider is informed of such change, unless such disclosure is precluded due to extraordinary circumstances beyond the covered service provider's control, in which case the information must be disclosed as soon as practicable.

(2) A covered service provider must, at least annually, disclose any changes to the information required.



What if the covered service provider fails to provide the information or fails to provide it on time?

Paragraph (c)(1)(ix)(B) of the regulation requires that, upon discovering that the covered service provider failed to disclose the required information,

(1) the responsible plan fiduciary must request in writing that the covered service provider furnish such information.

(2) If the covered service provider fails to comply with the responsible plan fiduciary's written request within 90 days, paragraph (c)(1)(ix)(C) requires that the responsible plan fiduciary notify the Department.

(3) If a service provider fails to provide the required information, the contract or arrangement between the plan and the service provider is prohibited by ERISA, and the responsible plan fiduciary will have engaged in a prohibited transaction. However, an exception (known as a class exemption) allows responsible plan fiduciaries who did not know that the service provider had failed to disclose some of the required information to avoid engaging in a prohibited transaction. To get this relief, certain conditions must be met. Among other things, the responsible plan fiduciary must request the missing information from the service provider in writing and, if that fails, notify EBSA within 30 days of certain events.

(4) If so, the plan fiduciary is responsible for recording that it requested the disclosure or requested further information.

(vi) Reporting and disclosure information; timing.

(A) Upon the written request of the responsible plan fiduciary or covered plan administrator, the covered service provider must furnish any other information relating to the compensation received in connection with the contract or arrangement that is required for the covered plan to comply with the reporting and disclosure requirements of Title I of the Act and the regulations, forms and schedules issued thereunder.

(B) The covered service provider must disclose the information required by paragraph (c)(1)(vi)(A) of this section reasonably in advance of the date upon which such responsible plan fiduciary or covered plan administrator states that it must comply with the applicable reporting or disclosure requirement, unless such disclosure is precluded due to extraordinary circumstances beyond the covered service provider's control, in which case the information must be disclosed as soon as practicable.

×

Definition

Record Keeping

Record keeping services include services related to plan administration and monitoring of plan and participant and beneficiary transactions (e.g., enrollment, payroll deductions and contributions, offering designated investment alternatives and other covered plan investments, loans, withdrawals and distributions); and the maintenance of covered plan and participant and beneficiary accounts, records, and statements.


Providers of record keeping services, their affiliates or subcontractors must disclose all direct and indirect compensation expected to be received in connection with those services. If record keeping is not billed separately but is part of a bundle of services provided for an all-inclusive fee, a good faith estimate of the record keeping cost must be provided and a description of how the estimate was derived.

×

Benchmark Investment Objective Categories

In this step, you are going to choose a representative fund offered by your plan for cost comparison (TAOE) to a benchmark.


Choose from the list below the investment objective category that best fits the investment objective of the fund you are using.

  • Equity Funds
  • Aggressive Growth Funds
  • Growth Funds
  • Sector Funds
  • Growth and Income Funds
  • Income Funds
  • International Funds
  • Hybrid Funds
  • Taxable Bond Funds
  • Target Date Funds
×