A Retirement Plan fiduciary is constantly challenged by a complex regulatory system, potential conflict of interest, and increased supervision from investor and regulators. These are only some of the aspects of this dynamic environment that should be managed by the professional.

According to ERISA, a fiduciary perform their duties solely in the interest of the participants and beneficiaries. The primary duties of a fiduciary are:

The “exclusive benefit rule” means the fiduciary’s actions must be solely in the interest of the participants and beneficiaries. They also must be for the sole purpose of providing benefits to the individual participants and their beneficiaries as well as ensuring that expenses for administering the plan are reasonable.

According to the DOL, “the maintenance by an employee beneft plan of a statement of investment policy designed to further the purposes of the plan and its funding policy is consistent with the fiduciary obligation set forth in ERISA.”

ERISA applies a revised and restate version of the prudent investor rule (also know as prudent expert rule):

Actions must be discharged “with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use  in the conduct of an enterprise of a like character with like aims.”

Retirement plan investments must be diversified in order to minimize the risk of large losses, unless it is clearly prudent not to do so. Diversification must be considered in the context of the entire portfolio and as a part of overall strategy.

A fiduciary has a specific obligation to ensure that fees and expenses are reasonable in light of the level and quality of services provided.

What we do

Inva Capital Wealth Management acknowledges fiduciary duties in writing and will act as 3(38) fiduciary for your retirement plan.

  • Retirement Plan design

  • Retirement Plan monitoring

  • Investment Policy Statement creation

  • Asset allocation and selection

  • Retirement Plan benchmarking

  • Custodian and Administrator selection

  • Periodic reviews and meetings

  • Fee and expense evaluation

  • Participant education

  • Fiduciary support

Below, you can review the duties and responsibilities of each party in the retirement plan:

  • Determine and verify eligibility of employees
  • Ensure employees are properly enrolled
  • Responsible for creation and distribution of participant communication that comply to ERISA Section 2550.404(c) including 404 (c) notice, investment option information including fees and expenses, prospectuses, statements and participant fee disclosures
  • Address participant requests in compliance with 404 (c)
  • Quarterly monitor payroll contributions
  • Monitor terminated employees and track distributions
  • Review all annual compliance testing and assist in any necessary corrections
  • Review, sign, and file annual plan returns
  • Coordinate and distribute all regulatory notices such as QDIA, Black Out, Auto Enroll notices
  • Process and sign off on all distributions, loans, and hardship distributions
  • Administer rollover requests for terminated employees
  • Provide for annual audit of the plan
  • Provide and maintain up to date census
  • Manage process for annual filing of Form 5500
  • Send out required year end notices to participants such as Safe Harbor and Summary Annual Report
  • Select investment platform meeting ERISA standards
  • Produce and maintain an Investment Policy Statement
  • Conduct quarterly Investment Committee meetings
  • Review and document investment returns, fees, expenses, and comparisons to peer group
  • Monitor all investment choices offered to remove or replace as appropriate

We are here to help you to reach your goals and enjoy a prosperous life!

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