As part of your fiduciary compliance responsibilities as a plan sponsor, you should regularly review the providers that work with your 401(k) plan. The Department of Labor suggests plan sponsors do so every year if plan assets are used to pay plan fees and least every three years with other fee arrangements. As a fiduciary, you have an obligation to ensure that your providers are appropriate and that the fees you are paying for their services are reasonable.
The DOL does not require you to make any provider changes as a result of your reviews. Nor does it mandate that you work with the lowest cost provider. All that is required is that you determine that fees paid are reasonable. However, the 401(k) plan marketplace is very dynamic and you are likely to discover some surprises when you conduct provider reviews. Following are suggestions for managing a 401(k) provider review process.
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