Are You Aware of Your Employee Retirement Plan Fiduciary Responsibilities?
If this question made you pause and think, chances are you’re probably not. We can help. Let us supplement your team with our specialized expertise.
Many business owners set up an employee retirement plan and think that, once it’s set up, it can take care of itself. Unfortunately, it cannot. Not arranging for plan maintenance or not submitting a qualified, thorough audit can have serious implications to the assets held in their plan and their bottom line.
The rule of thumb for whether audited financial statements of the plan are needed is based on the number of eligible participants at the beginning of the plan year. If this equals or exceeds 100 participants, generally an audit could be required. It is important to note that a participant includes all eligible participants, even if they are not contributing and also terminated, retired or deceased participants with account balances.
Among other duties, fiduciaries have a responsibility to ensure that the services provided to their plan are necessary and that the costs of those services are reasonable.
Unfamiliarity of the Employment Retirement Income Security Act isn’t an excuse even though it’s difficult to understand. With the right guidance, however, you can avoid costly penalties as well as year- end problems and delays.
We can help you uncover discrepancies that can surprise you years down the road. We can also help with compliance issues. This is more than just meeting your responsibility and avoiding negative consequences. It’s about the specialized financial, operational and regulatory requirements that must be addressed, and finding the ongoing support that direct your needs- with the right advisor.