Category: Fiduciary

Employee Investment Outcomes and the New Fiduciary Standard

Fiduciary, Participant Outcomes, Regulatory Updates / ETAdmin

When Section 401(k) became a permanent provision of the Internal Revenue Code in 1980, a seismic shift occurred in American workers’ preparation for retirement. The responsibility for contribution and investment decisions shifted from employers to employees. Before 1980, companies that offered a retirement plan were required to fund them. That meant that the employer alone […]

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The New Fiduciary Rule—Advisors Who Only Educate Might Put Plans at Risk

Fiduciary, Regulatory Updates / ETAdmin

At a recent 401(k) summit in Nashville, I was surprised to hear the number of advisors who said they are considering offering only education to participants, so they do not have to comply with the new fiduciary rule. As many now know, under the new fiduciary rule announced by the Department of Labor, anyone who

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Fiduciary Basics – Helping 401(k) Plan Sponsors Understand Fiduciary Status

Fiduciary / ETAdmin

A fiduciary is defined as a legal or ethical relationship or trust between two or more parties. Typically, a fiduciary prudently takes care of money for another person. How does this relate to 401(k) plans? When a company decides to sponsor a 401(k) plan they must establish a trust account to hold the contributions to

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