Call Us Today! 516-594-1557
Mistakes That 401(k) Plan Providers Can Avoid Today
Like Senator Pat Geary in The Godfather Part II, I can be a little frank, a little too frank, but I don’t blackmail mobsters or visit joints owned by Fredo Corleone. Expressing an opinion or offering advice can upset a few apple carts (I still don’t know what that means). As a plan provider, you can take my advice with a grain of salt, but there are certain clear mistakes you can avoid today and this is what this article is all about.
Crypto guidance doesn’t threaten brokerage windows
New cryptocurrency guidance from the Labor Department (DOL) had made people wary that they threaten brokerage windows. I disagree.

Under that crypto guidance, the DOL suggests that employers could be responsible for risky crypto trades their 401(k) plan participants make. I think the DOL’s guidance is rather clear, it’s on the use of cryptocurrencies and I don’t think there has been a change in the DOL’s thinking.
Cite what you did
My village is finally getting a contested election for the school board for the first time in forever (I’m a big Frozen fan). One of the incumbents is one of those who went into volunteering to make money and money for his kids while he doles out school district jobs for friends and family. 9 years in his position and he can’t cite anything he’s done that has benefited the school district, while it suffers since he’s been in the position.

As a retirement plan provider, your chances of being retained are by citing what you have done and what is best for the retirement plan and the plan sponsor. In a show and tell world, show does it all. If you can’t cite positively what you’ve done for the plan, your charm and personality aren’t going to help get you retained.
Figure out about life after COVID
Eventually, COVID will come to some end. I don’t know what that end will be, but I’ve been contemplating life after COVID when it comes to hosting That 401(k) Conference.

As a plan provider, you will have to figure out what parts of the virtual world will remain for you as the world has been opening up quite a bit over the last few months. I still think travel will still be cut back and plan providers will want to keep the cheaper virtual world in their toolbox to cut back costs.
The problem with SDBAs are still there
The federal Thrift Savings Plan will allow participants to allocate some of their assets through a self-directed brokerage account (SDBA) this summer.

SDBAs are popular among larger plans and small to medium-sized plans that belong to professional firms. While half of the large plans now offer SDBAs to plan participants, less than 3% of participants in a given plan make use of the brokerage window. It’s usually the high earners that want it and some of them want their advisor to help handle the investments in the SDBAs.

I know I’m talking to a wall when I say that SDBAs aren’t a great idea since participants as a whole, do better with the core fund lineup than they do with their directed investments in an SDBA. I don’t have the numbers to back it up, but it’s just based on a hunch.

SDBAs can lead to increased fees if the plan’s advisor can’t charge for those assets and I think it’s a potential liability headache for the participant that might sue over the losses they created through the SDBA as well as the mistakes by the plan sponsor in not offering the feature to all participants.

But when a plan sponsor wants to add it,l I give it to them, since it’s their ultimate fiduciary decision.


Seattle registration for September is open.

Seattle has been booked for September 9th. The event will emanate from T-Mobile Park, home of the Seattle Mariners.

For 401(k) advisors, it's the most fun for just $100. Meet and greet with a mariners great, lunch, stadium tour, and 5 hours of content from great 401(k) plan providers.

Sign up for the event can be found here.

We will have game tickets that night as the Seattle Mariners take on the Atlanta Braves.

For information on sponsorship, which starts as little as $500, please click here.



Charlotte registration is open.

Charlotte has been booked for November 18th. The event will emanate from Bank of America Stadium, home of the Carolina Panthers.

For 401(k) advisors, it's the most fun for just $100. Meet and greet with a Panthers great, lunch, stadium tour, and 5 hours of content from great 401(k) plan providers.

Sign up for the event here.

For information on sponsorship, which starts as little as $500, please click here.



National Virtual Conference registration is open. Early bird is $2.23

Our national event is virtual again. Spread over 2 days in January, you can attend the event from the comfort of your office or home.

For 401(k) advisors, it's the most fun for just $2.23, you read that right.

Sign up for the event here.

For information on sponsorship, which starts as little as $500, please click here.