Business Owners and Human Resources Directors share the desire to provide the highest quality retirement plans (“plans”) for their employees. I mean, who wouldn’t want to have access to plans that take full advantage of the current tax laws in place and have quality investment choices?

Not only do quality plans provide an opportunity for employees to save for retirement and build wealth in tax advantaged vehicles, but they also provide business owners a way to recruit and retain appealing workers.

In addition, strategic planning can be utilized for ‘key’ employees to maximize their benefits. The next step is to ensure your current retirement plan is taking full advantage of the current tax laws, rules, and regulations. However, the many tax laws, put in place by the Internal Revenue Service (“IRS”), and the rules and regulations, enforced by the US Dept. of Labor (“DOL”), have Owners and HR Directors stumbling through this vital process.

Roger’s Wealth Group understands the exhaustive number of complexities in this process and has compiled a list of key questions to reflect upon while reviewing your current plan. These questions will touch various components related to the retirement plan selection process. Our ultimate desire is to help you get the ball rolling and develop additional questions regarding your plan and how it generates the best possible benefit for your employee base.

1) Is your plan designed specifically around the unique nature of your business?

2) What level of fiduciary responsibility does your provider accept?

3) Most importantly, is the plan compliant with the required regulations?

These questions will help you identify any issues in your ‘foundation’. A plan that is not tailored to your employee’s needs or is not compliant can create serious financial issues for the organization in the future.

The Employee Retirement Income Security Act (“ERISA”) defines three levels of fiduciary responsibility, or who has control over the plan’s operations, for retirement plan administrators (US Dept. of Labor, 2014). It is critical to define and understand who holds what responsibilities in the various plan activities, as this will allow all parties involved to remain compliant.

In addition to meeting the DOL fiduciary definitions, the Centre for Fiduciary Excellence, LLC (“CEFEX”) awards certifications to organizations applying the highest standards of fiduciary excellence in their investment management, governance, and operational processes. This independent certification identifies organizations who demonstrate trustworthiness to plan participants, donors, and the general investing public. Ideal plan administrators meet the DOL requirements and hold a CEFEX certification (fi360 Inc., 2013).

Next week- Part Two: Costs to Offer Retirement Plans