404(c) Compliance Checklist

Are you liable for losses resulting from participants’ direction of their investments?

ERISA section 404(c) relieves plan sponsors and other fiduciaries from liability for losses resulting from participants’ direction of their investments. This protection applies only to participant-directed investments, and not to investments required under the plan or directed by the plan sponsor. To take advantage of ERISA section 404(c), the plan must satisfy three categories of requirements:

1. Investment menu requirements
2. Plan design and administrative requirements
3. Information and disclosure requirements

Category requirements are outlined in our ERISA Section 404(c) Compliance Checklist. Use this form to download your free checklist.