I don’t have employees. There are a lot of reasons for that, but one of them is that I was an employee once too. I worked for employers who were far more concerned about themselves than they were about their employees. Their needs came first. Their money came first. Their problems came first. Employees were somewhere farther down the list. There is nothing wrong with thinking about yourself. We all do it. If you own a business, you took the risk, probably put up the money, and probably worked ridiculous hours to build the business. You should be able to enjoy the fruits of your labor. But when it comes to running a 401(k) plan, you can’t be selfish. That’s where many plan sponsors get themselves into trouble.

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If I had a dollar for every time a plan sponsor asked me a question that was already answered in their plan document, I’d probably have enough money to retire.

The retirement plan document isn’t something you sign once and toss into a filing cabinet. It’s the legal blueprint for how your 401(k) plan is supposed to operate. Yet many plan sponsors have never read it beyond the signature page.

That’s where problems begin.

I’ve seen employers accidentally exclude eligible employees because they misunderstood the eligibility provisions. Others have made matching contributions that didn’t align with the formula in the document. Some have allowed distributions or loans that weren’t even permitted under the plan’s terms. None of these mistakes were intentional, but good intentions don’t eliminate fiduciary responsibility.

Your service providers should know your document inside and out, but ultimately the plan sponsor is responsible for ensuring the plan is operated according to its written terms. That’s one of the fundamental requirements of ERISA.

I’m not suggesting every business owner become an ERISA lawyer. I am suggesting you spend an hour every year reviewing the provisions that matter most: eligibility, entry dates, employer contributions, vesting, distributions, and loans. If something doesn’t make sense, ask your TPA or ERISA attorney to explain it.

A plan document shouldn’t be a mystery. It should be a resource. The more familiar you are with its provisions, the less likely you’ll encounter operational failures that require costly corrections.

Your retirement plan is one of the most valuable benefits you provide your employees. Make sure you understand the rules that govern it. Reading your own plan document may not be exciting, but it could save you a great deal of time, money, and frustration down the road.

Every retirement plan should have an annual meeting. Not the participant education meeting. Not the investment review. I’m talking about a meeting where the people responsible for administering the plan sit down and ask one simple question: “How are we doing?”

Too many plan sponsors treat their 401(k) like an appliance. As long as it turns on, they assume everything is fine. Unfortunately, ERISA doesn’t work that way.

An annual fiduciary meeting gives plan sponsors the opportunity to review service providers, discuss participant issues, examine operational errors, review cybersecurity practices, evaluate plan design, and make sure everyone understands their responsibilities. It’s also the perfect time to document decisions that may later be questioned by the IRS, DOL, or plan participants.

I’ve seen plenty of clients who have excellent service providers but no process. When something goes wrong, nobody remembers why a decision was made or who approved it. Good meeting minutes won’t prevent mistakes, but they can demonstrate that fiduciaries acted prudently.

This meeting doesn’t have to last all day. An hour or two with your advisor, TPA, ERISA counsel, and other key providers can identify issues before they become expensive problems.

Think of it as preventive maintenance. You wouldn’t skip servicing your car for five years and expect everything to run perfectly. Your retirement plan deserves the same attention.

If you’re not having an annual fiduciary meeting, you’re missing one of the easiest opportunities to improve plan governance and reduce fiduciary risk.

The best time to schedule your annual meeting was last year.



The second-best time is today.

I can’t tell you how many times I’ve heard someone say, “It’s in our employee handbook.”

That’s great.

But if it conflicts with the retirement plan document, the handbook usually loses.

Your employee handbook is an important HR tool. It explains workplace policies, benefits, attendance rules, and company expectations. Your retirement plan document, however, is the legal document that governs how your qualified retirement plan operates.

The two are not interchangeable.

I’ve seen handbooks describe eligibility incorrectly, explain matching contributions that no longer exist, or promise features the plan doesn’t actually provide. Sometimes the handbook was written years ago and never updated after the plan was amended.

That’s where problems begin.

Employees read the handbook and expect those provisions to apply. Payroll relies on it when administering the plan. Then an audit or operational review reveals that the handbook says one thing while the plan document says another.

Guess which document the IRS and Department of Labor will look at?

The plan document.

This doesn’t mean your handbook isn’t important. It means someone should review it whenever your retirement plan changes. If eligibility, matching formulas, automatic enrollment, vesting schedules, or other plan provisions are amended, make sure your handbook reflects those changes.

Consistency matters.

Your handbook is designed to communicate benefits to employees. Your plan document is designed to satisfy ERISA and the Internal Revenue Code. Both have a purpose, but only one governs the operation of your retirement plan.

Don’t assume they’re saying the same thing.

Verify it.