Issues that 401k Plan Sponsors Should Resolve in 2020
2020 has already brought with it a plethora of curveballs. Coronavirus has plagued the country and world in more ways than one—the stock market cratered while the coronavirus count steadily rose, and businesses, individuals and families in the country collectively held their breath in the initial days our government leaders debated whether or not all non-essential businesses should close until further notice.
If you’re a 401(k) sponsor, it isn’t the time to worry or panic. Instead, you should focus on creating and executing an effective plan to resolve any issues that may arise as a result of the current events, and a certified fiduciary can help you do just that. Here, experienced fiduciary Peter O’Neill at Fiduciam Wealth Planning provides an overview of issues that 401(k) plan sponsors should address and resolve in 2020.
A 401(k) Plan Sponsor Should Stay Cautious, But Not Concerned
A plan sponsor is typically a company or employer that sets up a 401(k) retirement plan for the organization’s employees and is in charge of determining the details and guidelines of the plan, investment options, how much they will contribute to their employees’ 401(k) plans and more. Plan sponsors establish the initial 401(k) plans and are responsible for paying employees the retirement income they are qualified for in their individual plans.
If you are a plan sponsor, it is normal for you to feel wary in light of the current events, but it is important not to let fear get the best of you. Clear communication with your employees is one of the most crucial first steps to mitigating the feelings of anxiety regarding the coronavirus outbreak. Of course, if your company is currently working remotely, it makes communication modes that much trickier. However, it is important to keep communications regular and frequent, especially as they relate to company changes and if you are going forward with implementing loan plans such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act or another aid program.
Review Your 401(k) Plan Parameters
Many issues that may arise regarding 401(k) plans can be lessened by simply going over the details of your plan and making sure you aren’t missing any glaring details or extra fees you may be paying. Double-check to see how your specific plan providers are operating amid this pandemic. You never know what a simple run-through of your current plan can do for your employees, your business and your own mental state during these confusing times.
Managing Your Plan in Light of Coronavirus Shouldn’t Be Your Only Takeaway
While coronavirus news is currently sweeping the nation and certainly going to be a foremost concern in the minds of employers everywhere, large pandemic outbreaks such as this shouldn’t be the only time 401(k) plan sponsors should be staying proactive about their plans and working to resolve issues. Plan sponsors, no matter the current events, have the responsibility to stay up-to-date on yearly changes that occur with benefits plans and must always keep their employees in mind, especially with cost-of-living adjustments. While plan sponsors have a large amount of responsibility when it comes to managing their employees’ 401(k) plans, many rely on an outside investment advisor or fiduciary, such as the team of fiduciaries at Fiduciam Wealth Planning, to help support and handle major investment decisions and other fiduciary obligations so you can focus on the day-to-day functions of your job.
Consult with A Skilled Fiduciary at Fiduciam Wealth Planning Today
While 2020 is sure off to an unprecedented start, it doesn’t mean panic is necessary, and it also doesn’t mean you should slack off on mitigating small issues before they become major problems. The team at Fiduciam Wealth Planning is committed to the health and safety of the community and will be remaining open and operational in a remote setting. If you have any questions about next steps if you are a 401(k) plan sponsor, contact our team of fiduciaries at Fiduciam Wealth Planning today.