Many business owners establish a 401(k) plan with good intentions and then assume everything will continue running smoothly year after year. While retirement plans are designed to be long-term benefits, they should never be a "set it and forget it" part of your business.
Regular plan reviews help ensure your retirement plan remains competitive, compliant, and aligned with your company's goals.
Without periodic reviews, employers may face:
Rising Fees
Plan fees can change over time. What was once a competitive fee structure may no longer be reasonable compared to today's marketplace.
Outdated Investment Options
Investment menus should be reviewed regularly to ensure participants have access to appropriate, well-performing investment choices.
Compliance Risks
Retirement plan regulations continue to evolve. Failing to keep up with legislative and regulatory changes can create unnecessary compliance concerns.
Reduced Employee Engagement
If employees don't understand the plan or don't see its value, participation rates may decline and retirement readiness may suffer.
Missed Opportunities
New plan features, tax incentives, and design improvements may become available over time. Without regular reviews, employers may miss opportunities to enhance their plan.
A retirement plan review doesn't necessarily mean changing providers. Often, small adjustments can create meaningful improvements for both employers and employees.
At least once per year, plan sponsors should evaluate fees, investments, participation rates, compliance requirements, and employee education efforts to ensure the plan continues serving its intended purpose. Schedule an Appointment!