Am I a Fiduciary? Steps 1-6 explain.
- Businesses that offer a 401(k) plan to their employees are considered a Fiduciary.
- The employee of this company that oversees the 401(k) plan is considered the Fiduciary Representative.
- You are a Fiduciary which means you are legally held to the highest standard.
- The Fiduciary Representative and the Company offering the 401(k) are held liable if anything is done that is NOT in the best interest of plan participants.
- Which means you are held responsible for every action taken by Third Party Administrators, Plan Providers and Financial Advisors.
- To protect yourself, seek an Advisor who is also held to the Fiduciary Standard, to ensure participant interests always come first.
An Excerpt from the Department of Labor’s guide: Meeting Your Fiduciary Responsibilities.
Department of Labor – Resource Center
Department of Labor – Meeting Your Fiduciary Responsibilities
Department of Labor – A look at 401(k) fees