401(K) Checklist

Here is a great checklist from the department of Labor’s website (www.dol.gov) that you can refer to and see if you covered all the bases when setting up your companies’ retirement plan:

A 401(k) Plan Checklist

1. Have you determined which type of 401(k) plan best suits your business?

2. Have you decided whether to make contributions to the plan, and, if so, whether to make nonelective and/or matching contributions?  (Remember, you may design your plan so that you may change your nonelective contributions if necessary due to business conditions.)

3. Have you decided to hire a financial institution or retirement plan professional to help with setting up and running the plan?

4. Have you adopted a written plan that includes the features you want to offer, such as whether participants will direct the investment of their accounts?

5. Have you notified eligible employees and provided them with information to help in their decision making?

6. Have you arranged a trust fund for the plan assets or will you set up the plan solely with insurance contracts?

7. Have you developed a recordkeeping system?

8. Are you familiar with the fiduciary responsibilities?

9. Are you prepared to monitor the plan’s service providers?
10. Are you familiar with the reporting and disclosure requirements of a 401(k) plan?

For help in establishing and operating a 401(k) plan, you may want to talk to a retirement plan professional or a representative of a financial institution offering retirement plans.

If you’re not sure about your plan I invite you to give me a call.  The first consultation is free, and there is no obligation.

Allan Watts
Financial Advisor
Tye Financial Group