Small Business 401(k) Blog

The Frugal Fiduciary Small Business 401(k) Blog

Get the latest industry news, deadlines and tips you need to know to help tackle your fiduciary responsibility needs.

Blog Feature

Plan Design | Thought Leadership | Fiduciary Responsibility

How to Simplify Your 401k Admin with a Cycle 3 Plan Restatement

By: Eric Droblyen
July 21st, 2021

As a business owner, you must operate your 401(k) plan according to the terms of a written plan document. Most plans use an IRS preapproved document for this purpose. All preapproved documents must be fully rewritten (or restated) every six years to reflect recent law changes. The last 6-year restatement cycle was called “PPA” after the Pension Protection Act. A new cycle - called "Cycle 3" - opened last year. Between August 1, 2020 and July 31, 2022, all pre-approved 401(k) plans must be restated from a PPA to a Cycle 3 plan document. That means now.

Read More

Share

Blog Feature

Provider Shopping | Thought Leadership | Fiduciary Responsibility

401(k) Plan Oversight - Understanding Your Fiduciary Hierarchy is Key

By: Eric Droblyen
July 7th, 2021

As a business owner, you want to understand the basic fiduciary hierarchy applicable to all 401(k) plans and the responsibilities of each role within it. This understanding can make the oversight of your 401(k) plan – basically ensuring that your fiduciary responsibilities are met – much more straightforward.

Read More

Share

401(k) Plan Design Checklist

Feeling overwhelmed?

Subscribe to the The Frugal Financial Small Business 401(k) Blog and receive this free checklist for help in determing the best 401(k) plan design options and fit for your company.

Blog Feature

401(k) Fees | Provider Shopping | 401(k) Studies | Fiduciary Responsibility

How Much Lower 401k Fees Can Grow Your Retirement Savings

By: Eric Droblyen
May 12th, 2021

There are few industries where the phrase “you get what you pay for” is less applicable than the 401(k) industry. Equally competent 401(k) providers can charge dramatically different fees for comparable administration services and investments. This variability is a big problem for employers – who have a fiduciary responsibility to protect the interests of plan participants by paying only “reasonable” 401(k) fees. Employers that fail to meet their responsibility can be personally liable for restoring participant losses due to excessive fees.

Read More

Share

Blog Feature

401(k) Fees | Provider Shopping | 401(k) Studies | Fiduciary Responsibility

401(k) Fee Study: 75% of Small Business Plans Pay Hidden Fees

By: Eric Droblyen
April 28th, 2021

Employers have a fiduciary responsibility to ensure the fees paid by their 401(k) plan are “reasonable” – so excessive fees do not reduce the investment returns of plan participants needlessly. To do that job, employers should ”benchmark” their 401(k) fees periodically by comparing them to industry averages and/or the fees charged by competing 401(k) providers. Sounds straightforward, but this information is hard to find and often harder to compare on an apples-to apples basis.

Read More

Share

Blog Feature

401(k) Fees | Plan Design | Fiduciary Responsibility

401(k) Plan Restatements - Save Fees With These Amendments

By: Eric Droblyen
February 3rd, 2021

401(k) plans must operate according to the terms of a written plan document to meet IRS qualification requirements. Most plans use an IRS preapproved document for this purpose. These documents must be fully rewritten (or restated) every six years to reflect recent law changes. The last 6-year restatement cycle was called “PPA” after the Pension Protection Act of 2006. A new cycle - called "Cycle 3" - opened last year. From August 1, 2020 to July 31, 2022, all pre-approved 401(k) plans must be restated onto a Cycle 3 document.

Read More

Share

Blog Feature

Testing | Fiduciary Responsibility

401(k) Nondiscrimination Testing - Basics and Deadlines

By: Eric Droblyen
January 19th, 2021

Each year, 401(k) plans must pass certain IRS-mandated nondiscrimination tests to confirm Highly-Compensated Employees (HCEs) do not disproportionately benefit and no IRS contribution limits are exceeded. These tests are often completed soon after the close of the year so test correction and tax deduction deadlines are not missed. For calendar-based 401(k) plans, that means now.

Read More

Share