401(k) Fiduciaries: 3(16), 3(38), & 3(21)

An explainer of 401(k) service providers, specifically the fiduciary services available to employers. There are three major types of fiduciary services (or co-fiduciary, if you prefer):
- 3(16) Administrators
- 3(21) Investment Advisers
- 3(38) Discretionary Advisors

These services can ease the burden for employers who are busy running their businesses. But the specific services differ, depending on what type of fiduciary you hire, and what each service provider does.

This video describes the differences between these types of fiduciaries. Ideally, it helps you understand what you get — and helps you decide if it’s worth hiring one of these providers for your plan. I’m describing the services typical for small-plan providers, which might be defined as 401(k) plans with under $5 million or so. For larger plans, there is certainly some overlap, but my focus is on retirement plans for small businesses (as well as nonprofits and other types of organizations that offer retirement plans).

Ultimately, you’re still responsible for your plan as a fiduciary, in most cases. But you don’t have to do all of the heavy lifting yourself. If it makes sense to hire additional service providers, you can focus your energy on the things you’re best at and let others handle the 401(k) logistics.

Please let me know if you’re looking for guidance on your organization’s 401(k) plan. I can help you navigate the variety of service providers and develop a plan that helps you and your plan participants improve the chances of a good retirement outcome.
Important: Please consult with an attorney for specific legal advice. This information is general in nature, and is provided without any knowledge of your circumstances. The information may be outdated, inaccurate, or not applicable to your situation. Approach Financial, Inc. is not licensed to practice law.
Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.

All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services.

Видео 401(k) Fiduciaries: 3(16), 3(38), & 3(21) канала Justin Pritchard, CFP® on Retirement Planning