Checklist for Successful Plans
Most plan sponsors want to have “successful” 401(k) plans. However, the definition of success varies.
As an adviser, part of your role is to help the plan sponsor have a successful plan, primarily taking into account the sponsor’s definition . . . but also considering your own concerns and objectives.
Attached to this newsletter is a Checklist for Successful Plans. We created the Checklist to help you work with plan sponsors to identify their definition of a successful plan . . . and then to help them achieve those goals.
Our thinking is that you would work with your plan sponsor clients to identify their one or two most important goals and then benchmark the current status of the plan, so that you can show them evidence in the future that they are accomplishing those goals. In that sense, this checklist contemplates benchmarking, both currently and in the future. Furthermore, benchmarking against comparable plans will help plan sponsors understand the strengths and weaknesses of their plans, so that they can establish objectives based on good information.
Then, every year, the success in accomplishing the goals should be measured and the goals should be monitored and reaffirmed or replaced.
Any tax advice contained in this communication (including any attachments) is neither intended nor written to be used, and cannot be used, to avoid penalties under the Internal Revenue Code or to promote, market or recommend to anyone a transaction or matter addressed herein.
© 2010
Reish & Reicher, A Professional Corporation. All rights reserved. THE ADVISER REPORT is published as a general informational source. Articles are general in nature and are not intended to constitute legal advice in any particular matter. Transmission of this report does not create an attorney-client relationship. Reish & Reicher does not warrant and is not responsible for errors or omissions in the content of this report.
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