What or Who is a 401k Plan Sponsor?

09 May 2023 Fiduciary-Shield-by-BidMoni 401(k) Administration, 401(k) Advisors

Plan Sponsor

A 401k plan sponsor is an employer or organization that establishes and maintains a 401k retirement plan for the benefit of its employees or members. The plan sponsor is responsible for selecting the investment options available in the plan, determining the plan's administrative and operational features, and ensuring that the plan complies with applicable laws and regulations.

The plan sponsor may also hire third-party service providers, such as recordkeepers and investment advisors, to assist with the administration and management of the plan. However, the plan sponsor retains ultimate responsibility for the plan's operation and fiduciary duties.

Plan sponsors have a legal obligation to act in the best interests of plan participants and beneficiaries and to fulfill their fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA). This includes ensuring that fees and expenses associated with the plan are reasonable and disclosing all relevant information to plan participants.

Are Employers Required to Match in a 401k?

04 May 2023 Fiduciary-Shield-by-BidMoni 401(k) Administration, 401(k) Participants, 401(k) Rules and Regulations

401k Match

Employers are not required by law to offer matching contributions in a 401k plan. However, many employers choose to do so as a way to encourage employee participation and help employees save for retirement.

If an employer does offer a matching contribution, the terms of the match can vary. Some employers match a percentage of the employee's contributions, while others may match a specific dollar amount. Additionally, there may be restrictions on when the matching contributions are fully vested, meaning when the employee has full ownership of the funds.

It's important to carefully review the terms of your employer's 401k plan to understand if and how they offer a match, and if there are any conditions or restrictions on the matching contributions. If your employer does offer a match, it's generally recommended to contribute at least enough to receive the full match, as it is essentially free money that can help grow your retirement savings faster.

Webinar Replay: BidMoni Small Market Solution

22 July 2021 Fiduciary-Shield-by-BidMoni 401(k) Administration, 401(k) Advisors

BidMoni Small Market Solution Webinar Replay

 

BidMoni has partnered with five national Recordkeeping firms and one national TPA firm to create the first ever fully digital 401K marketplace.  We have worked with advisors across the country to remove the friction points in selling smaller plans, including:

  • Identifying opportunities
  • Generating proposals
  • Running plan comparisons
  • Plan onboarding