Frequently Asked Questions

What is a 401(k) advisor?

A 401(k) advisor is a retirement plan professional who helps employers and employees design, manage, and optimize employer-sponsored retirement plans. A 401(k) advisor provides guidance on plan design, investment selection, fiduciary responsibilities, regulatory compliance, and employee education to ensure the plan meets both business objectives and participant needs.

What does a 401(k) advisor do for employers?

For employers (plan sponsors), a 401(k) advisor helps with plan design, vendor selection, investment oversight, fiduciary compliance, employee education, and ongoing monitoring. The goal is to create a compliant, cost-effective plan that attracts and retains employees while minimizing fiduciary risk.

What does a 401(k) advisor do for employees?

For employees, a 401(k) advisor provides education and personalized investment guidance based on individual goals, risk tolerance, and retirement timelines. This may include one-on-one consultations, group education sessions, and ongoing support to help participants make informed retirement decisions.

What is the difference between generic advice and personalized 401(k) advice?

Generic advice offers broad, one-size-fits-all guidance, often through online tools or generalized recommendations. Personalized 401(k) advice considers individual circumstances such as age, income, risk tolerance, and retirement goals, providing tailored strategies that align more closely with each participant’s financial situation.

Do small businesses need a 401(k) advisor?

Yes. Small businesses often benefit greatly from working with a 401(k) advisor to ensure their plan is compliant, competitively designed, and cost-efficient. An advisor can help business owners navigate fiduciary responsibilities and design a plan that fits their company size and goals.

What types of retirement plans do you support?

In addition to traditional 401(k) and 403(b) plans, I provide consulting and advisory services for cash balance plans, non-qualified plans, and other employer-sponsored retirement solutions tailored to corporate and executive needs.

What is a 3(21) fiduciary advisor?

A 3(21) fiduciary advisor provides investment recommendations while sharing fiduciary responsibility with the plan sponsor. The plan sponsor retains final decision-making authority, while the advisor offers guidance and ongoing investment support.

What is a 3(38) fiduciary advisor?

A 3(38) fiduciary advisor assumes discretionary control over investment selection and monitoring for the plan. This reduces the plan sponsor’s fiduciary burden by transferring investment decision-making responsibility to the advisor.

How do employee education sessions work?

Employee education sessions may include group meetings, workshops, or one-on-one consultations. These sessions focus on understanding 401(k) plans, investment options, contribution strategies, and long-term retirement planning to empower participants to make informed decisions.

How often should a 401(k) plan be reviewed?

Most 401(k) plans should be reviewed at least annually. Regular reviews help ensure the plan remains compliant, investments are performing as expected, fees remain competitive, and the plan continues to align with company goals and market conditions.

Can you help fix or improve an existing 401(k) plan?

Yes. Whether a plan needs compliance corrections, fee analysis, vendor changes, or a complete redesign, I offer both one-time consulting services and ongoing advisory support to improve underperforming or outdated retirement plans.

How does working with a 401(k) advisor reduce fiduciary risk?

A 401(k) advisor helps document prudent decision-making, ensures regulatory compliance, monitors investments and fees, and provides fiduciary guidance. This proactive approach significantly reduces the risk of fiduciary breaches and potential liabilities for plan sponsors.

Is ongoing advisory service required, or can I choose one-time consulting?

Both options are available. Some clients prefer ongoing advisory support, while others seek one-time consulting for specific issues such as plan design, compliance fixes, or vendor selection.

How do participants benefit from working directly with a 401(k) advisor?

Participants gain access to personalized guidance, clearer understanding of investment options, improved confidence in retirement decisions, and strategies aligned with their individual financial goals rather than generic assumptions.

How do I know if my current 401(k) plan is competitive?

A plan benchmarking and review can compare your current plan’s fees, investment options, and features against industry standards. This helps determine whether your plan is competitive in attracting and retaining employees.