As a plan sponsor, when is the last time you benchmarked your 401(k) plan against other companies of the same size and industry as you? Are you confident your retirement plan is up to par with the latest plan features? Are your employees satisfied with it?

Here's why a benchmarking review is in order:

  1. 401(k) plan design features have improved drastically compared to older plan designs.
     
  2. Costs of 401(k) plans have decreased due to the competitive marketplace and fee disclosure rules.
     
  3. As a fiduciary you have an obligation to regularly review and monitor your plan.

Some of the recent changes in the 401(k) marketplace include automatic enrollment, auto deferral increases, Qualified Default Investment Alternatives, Target Date Funds and flexible investment menu options.

As a plan sponsor, you have a fiduciary responsibility to regularly review and monitor your plan and to make sure your costs are reasonable. Reviewing participant demographics, investment menu choices, educational materials, fiduciary issues and provider services can help you manage fiduciary risk and optimize the value of this benefit for your employees.

We can assist you in reviewing your plan and help offer considerations to improve your plan's effectiveness for you and your employees and possibly even lower your costs. For more information on 401(k) plans and to receive a complimentary benchmarking review of your plan, please contact us.

Additional resources

If any of these pieces inspires a question or investment idea, please contact us any time. We'd love to hear from you.

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Disclosures

Mike Anderson, NMLS # 1890363 through City National Bank, may receive compensation from RBC Wealth Management for referring customers to City National Bank. Banking products and services are offered or issued by City National Bank, an affiliate of RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC and are subject to City National Banks terms and conditions. Products and services offered through City National Bank are not insured by SIPC. City National Bank Member FDIC.

Investment products offered through RBC Wealth Management are not FDIC insured, are not guaranteed by City National Bank and may lose value.