Enhancing 401(k) Plan Governance: Ensuring Compliance and Best Practices

Enhancing 401(k) Plan Governance: Ensuring Compliance and Best Practices

May 23, 2025

In today's complex regulatory environment, effective 401(k) plan governance is crucial for ensuring compliance and protecting plan assets. Our recent training, "401(k) Plan Governance: Ensuring Compliance and Best Practices," covers several key topics designed to help plan administrators and HR professionals navigate these challenges. The training begins with the importance of regular 401(k) board meetings, which provide oversight and facilitate informed decision-making. These meetings should include representatives from the plan administrator, trustee, and investment manager, and should be held at least annually. Detailed meeting minutes are essential for documenting key discussions and demonstrating that fiduciaries are acting with prudence and diligence.

Another critical topic covered in the training is the ERISA bond requirements. ERISA mandates that 401(k) plans have a bond to protect plan assets from fraud or dishonesty. This bond must be for at least 10% of the plan's assets, with a minimum of $1,000 and a maximum of $500,000. Regular reviews of the bond amount are necessary to ensure it remains adequate as the plan's assets grow. Additionally, the training emphasizes the importance of documenting employee election changes, maintaining accurate wage and raise documentation, and implementing strategies for effective plan governance. These practices promote transparency, ensure compliance with ERISA regulations, and help build trust with plan participants.

By focusing on these topics, our training aims to equip plan administrators and HR professionals with the knowledge and tools needed to manage 401(k) plans effectively. Regular audits, ongoing training, and adherence to best practices are essential for maintaining a compliant and well-managed plan. We hope this training provides valuable insights and practical strategies to enhance your 401(k) plan governance and ensure the best possible retirement savings experience for your employees.

For additional information, contact us about our award winning services for Employee Benefits.