We’re entering 401(k) season. Are you prepared?

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More companies will change their 401(k) providers/platforms between Labor Day and Thanksgiving than at all other times of the year. 


In 2020 and much of 2021, as market turmoil increased, investor sentiment and economic outlook decreased in kind. Many retirement plan participants were confused about whether to take distributions from 401(k), and in general, were left looking for financial guidance that their provider did not provide. As the pandemic wore on, fees were not reviewed on an annual basis. In-person employee education had come to a total standstill. 

That’s why companies will be shopping around for a new 401(k) Plan or Advisor.

If you are in charge of your company’s 401(k) plan, we’ve compiled a list of the 13 most important items that every Trustee and Administrator should and needs to be on top of:

  • Are you aware of your current platform fee?
  • Are you sure your current platform fee is the most competitive it can be?
  • Are you aware of your investment fees?
  • Have you had your current investment line-up reviewed in the last 12 months?
  • Has your Advisor/Broker compared your funds using outside, non-proprietary software and comparisons?
  • Is your plan top-heavy? How will you fix this?
  • Are the owners and executives allowed to contribute up to the limit of $58,000?
  • Has anyone reviewed the Target Date Funds in your plan in the last 36 months?
  • Have you looked at alternative platforms in the last 36 months?
  • Is your current Financial Advisor a 3(21) or 3(38) Fiduciary on your 401(k) or are you on your own here?
  • When is the last time you had a full Trustee/Administrative review with your Advisor (required annually)?
  • Have you scheduled either live or via Zoom employee education meetings in the last twelve months?
  • Are you open to looking at a firm with great service, Plan Fiduciaries, and competitive fees?

Closing Thoughts

These are just some of the questions you must ask yourself. Should you come up with an answer that isn’t a raving “YES,” it may be time to look at going from just an “OK” 401(k) Plan to an incredible 401(k) Plan. This is our passion and profession!

Let’s schedule a Zoom meeting to cover these topics. I look forward to hearing from you. Please call our San Ramon, CA office at (925) 314-8500 or email me directly at elliot@prosperityfg.com.

Elliot Kallen

Registered Principal

Prosperity Financial Group

D | (925) 314-8503

E | elliot@prosperityfg.com

C | calendly.com/elliotkallen

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