This page outlines general information on fiduciaries and is not intended to provide legal advice. Please seek legal counsel for further assistance.
A fiduciary is an individual or entity who:
- makes decisions about managing the 401(k)
- administers the plan, or
- is paid to offer investment advice
Fiduciaries can be a plan sponsor, investment manager, or financial institution. The assigned fiduciary is a role with a tremendous level of responsibility for a company’s retirement plan. A fiduciary must act for the good of the plan, not for themselves.
Fiduciaries protect the company's financial assets and reduce risk to their reputation. For example, if a company switches their 401( k ) from one provider to another, the fiduciary is responsible for notifying employees of the change, and for managing the transfer of employee funds between accounts.
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