Does your 401(k) plan have an updated investment policy statement? Although you aren’t required by law to have one, the IPS is one of the primary documents the Internal Revenue Service and Department of Labor request when they visit employers for plan audits. Heres why you should have an IPS and make sure it is up-to-date:
Eligible investments. The IPS will outline the investments that the investment committee believe are appropriate for your retirement plan. This may include investment options like target date funds and collective trust funds. Also likely to be included are all nine combinations of large, mid and small capitalization mutual funds spread across the value, blend and growth spectrum.
