As an employer you have many items on your plate and if you offer a 401k plan to your employees here is one that could be overlooked. The Department of Labor regulations state that at a minimum the 401k plan that you offer needs to be Benchmarked once every three years. What does this mean?
Benchmarking your plan is the process of comparing the following to judge the overall performance of your 401k plan vs other similar size and industries plans:
- Fees
- Investment options
- Investment performance
- Employee contributions
- Business contributions
- Plan design
This is important because as a sponsor of a 401k plan you are legally required to provide the best possible plan within reason for your employees. By completing this process you are meeting your responsibilities, if you have not started this and you would like help, please give us a call we are able to assist you.
Blog by Alex Kiritschenko – Financial Advisor, Senior Tax Professional
Learn more about Alex and the rest of the Storen Financial team here.