The Employee Retirement Income Security Act, commonly referred to as ERISA, sets standards of conduct for those who manage an employee benefit plan and its assets. Such a person or entity performing many of the duties required in operating and managing a plan is known as a fiduciary.
The attached article outlines the rules in which ERISA requires employers to follow with regard to managing 401(k) plans.
One of the best practices for a fiduciary is to evaluate plan expenses on a regular basis. Plan expenses may include recordkeeping fees, investment fees, administrative fees and advisory fees; subsequently, these fees can often be complicated and difficult to understand. As such, employers should require their retirement plan professional to report fees associated with the plan, including internal fees of the plan’s mutual funds. For more information or further explanation or assistance in evaluating your plan, please contact your DHG Wealth Advisors retirement plan professional or your DHG client representative.