Whats the worst mistake a business can make regarding retirement plans?
The worst mistake a business can make is to try to implement an employee retirement plan on its own. To function properly, a 401(k) plan requires a team that works together. This team includes the employer (plan sponsor), a financial advisor, an asset provider, and a TPA. Financial advisors help determine a plan’s asset providers (investment choices) and educate the employees on the importance of retirement savings and diversifying investments. It is important to rely on a team of experienced professionals because the consequences for a plan sponsor who does not comply with the laws and regulations are severe and could include heavy civil or criminal penalties.
