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The Wrong Reasons For Hiring 401(k) Plan Providers
Some really bad reasons that plan sponsors use in hiring plan providers.
 Selecting a retirement plan provider can be a lot like dating in the sense that plan sponsors shouldn't pick providers for the wrong reasons. Nobody knows more about the wrong reasons for dating more than me; we call those wrong reasons: my brother-in-law and my former uncle. Seriously (I was serious in the last sentence), there are many reasons why plan sponsors pick certain providers and this article is going to tell you what are the wrong reasons are for doing so.
For the article, click here.
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Get Over The Fear Of Hiring An ERISA Attorney.
Get over it.
 As an attorney, I've heard a lot of lawyer jokes and some of them are amusing. I once said at law school that I now know why lawyers have terrible reputations because I met some of these lawyers at law school. While lawyers don't have the greatest reputation in terms of occupations, that shouldn't deter a plan sponsor from hiring one. We don't bite; at least most of us don't. Seriously, plan sponsors should get over their phobia over lawyers and hire an ERISA attorney when they need to. This article is when and why retirement plan sponsors should hire an ERISA attorney.
To read the article, please click
here.
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What It Takes To Make A Good Retirement Plan.
More than just luck.
 Good retirement plans don't happen like accident, like the discovery of penicillin. It requires roles and duties that need to be filled competently. It doesn't take a genius to make a good retirement, it takes dedication ad responsibility. It's no magic or secret sauce, this article will let plan sponsors what it takes to make a retirement plan good.
To read the article, please click here.
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401(k) Plan Sponsors Need To Get Up And Focus On This.
Avoid these problems.
 Too many plan sponsors ignore their retirement plans and by doing that, they are unknowingly putting themselves in harm's way. I know hat plan sponsors are busy running their own businesses, but the nature of the 401(k) plan requires some attention. Plan sponsors need to get off their rear end and concentrate on certain key points in order to make sure that they have a plan in place that won't cost them in liability later down the line.
To read the article, please click
here.
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The one thing you should never throw out as Plan Sponsors
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It's a mistake to throw it out.
 I'm always asked about how long plan sponsors keep records and there is one thing plan sponsors should never throw out, their plan documents.
While most records can be thrown out after 7-8 years, plan sponsors should never get rid of their plan documents including documents from the initial implementation even if it was 30 years ago. When it comes to audit, plan termination, or some other issue, you never know when the Internal Revenue Service may ask for a plan document from yesteryear. If you don't have the plan documents that you're supposed to have, the assumption is that it was never drafted and you have a huge compliance problem that could lead to some severe financial penalties.
I just came across a plan that might not have had their plan documents restated since 1999. Maybe the documents were restated, maybe they weren't. I'm not a betting man, but I always assume they weren't done. It's going to cost this plan sponsors thousands and thousands of dollars to correct this.
So while you may want to spring clean your plan files, never get rid of any types of plan documents. As far as valuation reports, participant records, and beneficiary forms, invest in a good scanner and network drives.
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You have a choice in who you hire as a plan provider.
You never have to settle.
 A few weeks back, I signed up my daughter with a new summer camp after she was at her previous camp for six years. Honestly, it was five good years at that previous camp and one not so great year. The one thing I'm happy about the camp change is that I no longer have to pay for a camp being run by not so nice people. Since my daughter liked the camp, I got to finally decide that I didn't want to be in any type of business relationship with the family that runs the camp.
That family was all about fleecing the parents of their campers. They were charging high camp rates while they slowly cut back on the trips and activities because of declining enrollment and increasing family members on payroll. The thing that always ticked me off the most was what I called their "fake charity". They would raise money to send underprivileged kids to attend their camp, so essentially they were soliciting contributions to put money in their pocket since those camp spots weren't being given away for free. They wont advertise it, but any contributions for this fake charity isn't tax deductible since they make a profit off these camp spots.
The point here is that if you're unhappy in the way that you're being treated or don't like the providers you're with because they rub you the wrong way, there are plenty of retirement plan providers out there to choose from. You don't have to be miserable in dealing with plan providers if those plan providers are making you miserable.
There are plenty of good plan providers who won't make you miserable or treat you like your business isn't worth anything to them.
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The Rosenbaum Law Firm Review, May
734 Franklin Avenue, Suite 302
Garden City, New York 11530 Phone 516-594-1557 Fax 516-368-3780
Attorney Advertising. Prior results do not guarantee similar results.
Copyright 2017, The Rosenbaum Law Firm P.C. All rights reserved.
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