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Salt Lake City Office

2150 East 1300 South,

Suite 500
Salt Lake City, UT 84106

A Guide For 401(k) Plan Sponsors

Benchmarking Your Plan

Having a knowledgeable 401(k) advisor benchmark your plan is one of the easiest and most beneficial actions you can take as the plan sponsor.

Benchmarking is the process of reviewing and evaluating your company retirement plan. It involves taking a look at what you are offering your employees and deciding if it’s the best fit. It also includes reviewing your fees, determining if they are reasonable for your plan now or if they require updating.

The independent review of your plan should be initiated, created, and managed by your financial advisor. The benchmarking review is an important part of your plan documentation that proves you’ve met your fiduciary obligation and must be kept in your file.

Why Should You Benchmark Your Plan?

How long has it been since you last benchmarked your plan (if ever)?  “Big Brother” is not watching, it is your responsibility as the plan sponsor to benchmark your plan.  The consequences of not benchmarking usually show up when your plan is in trouble.  Think of it like having car insurance, when you need it, you need it.

After your plans has been benchmarked there are 3 possible outcomes:

The Good: If your plan is in good order, we will provide you with written verification for your plan records. This verifies that your plan has been analyzed and reviewed by professionals and is in good order, or outlines the changes needed to be made. We will inform you, if your plan documents need to be restated. Best practice is to have your plan benchmarked every 2-5 years.

The Bad: Your plan needs work, and our benchmarking will provide you with the fiduciary audit support you need to satisfy the ERISA requirements to make sure your plan has the minimum standards it requires.

The Ugly: Your plan is in bad shape, and if you do nothing, your plan is out of compliance, and you may lose your qualified tax status. This could necessitate your plan being dissolved and having to cash the entire plan in and pay all applicable taxes and penalties for every year, for every employee, and for the company.

Our team can do the benchmarking for your plan and if you are in the Bad or Ugly Category we can help you fix it.

<strong>TruNorth Investment Management has extensive experience benchmarking 401(k) plans.</strong>

TruNorth Investment Management has extensive experience benchmarking 401(k) plans.

Having a financial advisor who is familiar with and understands the latest plan features and compliance requirements can benefit your employees by offering a competitive 401(k) plan and your business by staying in compliance with the latest regulations and potentially reducing fees and costs.

A Guide for 401(k) Plan Sponsors

A good 401(k) plan attracts top talent, builds high performance teams, and increases employee retention. 

Learn more

You Need a Team of Experts

Hiring a best-in-class team can help you offer a retirement plan that best meets the needs of your employees and your company and adhere to rigorous ERISA standards.

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When Plans Get in Trouble

Knowing about common mistakes and how to avoid them can keep your plan on track and your company out of trouble.

Learn more