The Role of the 401(k) Advisor An effective 401(k) advisor is much like a coach, coordinating the work of those with specific expertise in certain areas. Since you have the overall responsibility for all the various plan functions, it’s important that you select someone who can manage the whole, rather than just certain parts. In general, the role of a 401(k) advisor can be segmented into:
- Clearly defining the parameters of the specific client relationship and establishing reasonable expectations for both the client and the advisor.
- Evaluating and selecting service providers.
- Performing plan design consulting, including matching contribution formulas, cross-tested profit sharing allocations, qualification and eligibility issues, and merger and acquisition situations.
- Assisting in the design of an investment policy statement (IPS), which outlines a detailed, prudent plan of action for the trust’s investment managers and advisors to follow.
- Managing the implementation and transition to new provider(s).
- Serving as the primary contact for all aspects of plan servicing.
- Providing ongoing plan reviews.
- Managing employee communication and investment education. from the provider are necessary due to multiple company locations, we will coordinate those efforts. We also provide supplemental educational materials if desired.