The CARES Act provides financial aid for individuals and companies. The Act also has provisions allowing access to retirement savings and suspension of required minimum distributions.
As companies navigate how to move forward in this time of crisis, a small part in potential flexibility and opportunity could revolve around the company's retirement plan.
It is a very good use of time for a business owner or executive to review your retirement plan to ensure that you are providing the best benefit possible to your employees and to also reduce the potential for a lawsuit for breach of fiduciary duty.
401(k) plans are very flexible in how they can be designed and can be changed as the company’s goals change, but most plan sponsors don’t review their plan’s provisions on a regular basis.
There are three things retirement plan fiduciaries should implement and follow to reduce their risk.
Your role as a fiduciary can have either a positive impact or a negative impact on the success of your employees.
It is important for you to know because as a Retirement Plan Fiduciary you are held to a high standard of conduct.