Why You Need A Second Opinion Service for Your 401(k) Plan
Have you requested an “S.O.S.” (Second Opinion Service) for your company’s 401(k) Plan or 403(b)?
If you’re a Business Owner, CFO, Controller, VP-Finance or Human Resources Director, it is vital for you to get a second look at your retirement plan. Did you know that – according to the IRS – YOU are the person responsible for ensuring your retirement plan is in compliance with both the Internal Revenue Code and the terms of your plan document? Learn more here.
Scrutiny of 401(k) Plan fees is at an all-time high. If the IRS or U.S. Department of Labor audits your 401(k) Plan – which has become more likely in recent years – then you must know the answers to these two questions (amongst others):
1) How much does your 401(k) Plan cost?
2) Have you deemed this cost reasonable?
Perhaps you do know how much it costs… great!
But do you know how much your plan should cost? The most effective way to answer this question is to request an “S.O.S.” report from a trusted Retirement Plan fiduciary advisor firm like Triune.
If you run a 401(k) for your business, your compliance risk is real and should not be ignored.
Think about it like this – how does your cell phone plan today compare to ten years ago? Think about the cost, whether you have unlimited talk, text and data, and other “throw-ins” (like ESPN+, Netflix, Hulu, or similar). Has your provider ever contacted you to offer you more minutes and features at a lower cost?
For most of us, the answer is no. Wireless companies aren’t in the business of asking you to pay them less. The same can be said for 401(k) plan providers – which is why it’s recommended that you initiate the process of benchmarking your 401(k) Plan with a simple S.O.S. Report.
Industry costs have decreased in recent years* due to several factors:
Your plan has likely grown
Shrinking margins within the 401(k) industry
Better technology
Cutthroat competition
Additionally, our S.O.S. measures your plan’s performance, design, and the advice your employees are receiving (or not). Are your employees “on-track” to retire with dignity someday? You – and they – deserve to know.
I talked to someone recently who said retirement benefits and readiness were primary reasons that her employees were so long tenured.
One last pro tip: Be certain the firm you choose to conduct your S.O.S. operates as a Fiduciary, and is experienced in the field. Many 401(k) Plans today are sold by stockbrokers, life or health insurance agents, or financial advisors who only have two or three 401(k) Plan clients. It’s hard to become efficient or expert at anything without repetitions and practice.
At Triune, we have a dedicated team who focuses solely on 401(k), 403(b), and Cash Balance plan benchmarking, advisory, oversight and service. Learn more here.
ABOUT TRIUNE FINANCIAL PARTNERS
Triune Financial Partners is committed to empowering people with life-changing financial counsel. Triune is an independent firm that values clarity, simplicity, and transparency. We're a fiduciary, which means we always put our clients' interests first. In addition to Financial Life Planning for individuals and families, we also serve 100+ businesses, churches and nonprofits to craft powerful 401(k) and 403(b) plans for their organizations. Whether you're working with one of our Financial Life Planners or setting up a 401(k) plan for your organization, Triune is here to help you thrive financially.
Interested in working with us? Get in touch here.
*https://www.asppa.org/news/401k-plan-fees-decline-again
Originally published June 20, 2019