404(c) Compliance ERISA Checklist

Tim Hayes AIF®, CRPS®, AWMA®, CFS®, APMA®

404© can be a win/win for you and your employees. You eliminate liability, and your employees receive the tools to make better decisions.

Section 404© of ERISA requires plan sponsors to provide specific information and education to their employees, and if a plan meets the requirement than the plan sponsor and other fiduciaries are not liable for losses in an employee account.

Partnering with a credentialed, experienced, and independent financial advisor can help fulfill your requirements. For example, Tim holds employee meetings on asset allocation; provides employees with risk tolerance questionnaires and asset allocation templates as well as detailed information from Morningstar and fi360 on the investment options available in your plan.

ERISA 404(c) Compliance Checklist – PDF 3 Pages

404(c) Services

If managed correctly 404(c) is a great program. It requires plan sponsors to provide accurate information and education to their employees. If a plan meets their requirements, the plan sponsor and fiduciaries can shift the responsibility for investment losses to the participants. In Tim’s experience, many companies assume they have 404(c) covered, and they are not in compliance.

  • For example, Tim holds employee meetings to help them understand asset allocation; he also provides employees with risk tolerance questionnaires as well as detailed information from Morningstar, as well as others, on the investment options available in your plan.
  • With that in mind, we would like to offer you a no obligation review of your ERISA policies to assure your company is in compliance.  In the end, you will either have an opinion that you are in compliance, or you may find there are areas to be worked on.

In Tim’s experience, many companies assume they have 404(c) covered, and they are not in compliance.

404(c) Retirement Plan Compliance Checklist

404© Can Be a Win/Win for Both You and Your Employees

You eliminate liability and your employees receive the tools to make better decisions, but it is an ongoing commitment.

With the stock market close to all-time highs and the Federal Reserve’s QE program ending it’s a good time to discuss 404© and how Tim’s services could be of benefit.

Read more: My 401k Consulting Services

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