How to Confidently Navigate Your Fiduciary Responsibilities and Build a Stronger 401(k) for Your Organization
.jpg){kind=spacer}
Think of a retirement plan not just as a benefit, but as a powerful tool to shape your company’s future. From attracting top talent to boosting employee loyalty to saving your company real money on taxes, a well-run 401(k) can be your secret weapon. But let’s be honest: managing one can feel overwhelming. You’re not alone - 50% of plan sponsors say the pace of change in retirement plan is exhausting and causing burnout.
Yes, being a plan sponsor comes with responsibilities, but it also gives you the chance to make a real impact. The good news? You don’t have to do it alone. Trusted advisors like TPAs, recordkeepers, and investment consultants are here to help you navigate the complexity.
We’ll walk through some tasks that help you achieve your fiduciary duties.
When launching or monitoring a 401k, one of the first decisions is how the plan will be structured, or the plan’s design. Plan Design refers to eligibility criteria, vesting schedules, employer contributions, types of contributions allowed, withdrawal provisions, among others. Your advisor and TPA should walk you through each available customization to make sure it aligns with the goals of the company and its employees. For example, if your company is focused on retaining top talent, then a longer vesting schedule might make sense. But if you’re in a competitive hiring market, a generous match with immediate vesting could give you an edge. Your plan design should reflect your company’s DNA, not just check a box.
Retirement plan rules aren’t exactly light reading. Employer-Sponsored Retirement Plans (ERISA), SECURE Act, SECURE 2.0 - it’s a lot. But here’s the bottom line: these laws are designed to protect your employees and guide your responsibilities. Industry compliance with these laws takes years to unfold, but they create opportunities to engage with your employees, reevaluate your plan structure, and check in with your monitoring processes. The key is to stay ahead of changes, and that’s where your advisor team comes in.
Recordkeeping is a crowded industry. It seems like anyone can be a recordkeeper – an investment firm, a payroll provider, an insurance company, and asset manager, a robo-adviser… each has its pros and cons. Just because recordkeeping services are offered, does not mean that platform is focused on recordkeeping. For the plan Fiduciaries, it’s important to first determine the priorities that best align with your plan’s goals.
Not sure which recordkeeper is right for you? Ask yourself:
The answer to each of these questions will lead you in a different direction. The recordkeeper decision is an important one. It is the interface your employees will use to access their accounts, make allocation changes, update beneficiaries, etc. Moving recordkeepers is not an easy process, so you’ll want to do your due-diligence before committing. Each time you change recordkeepers your plan will have to go through a multi-week transition that includes a blackout period during which your employees won’t have access to their funds. However, the best recordkeeper for you today might not be the best for the next phase of your company. As a part of the Fiduciary duties, plan sponsors should evaluate their recordkeepers every few years to make sure they remain the optimal choice for their needs.
If you don’t already know it, investments are always a hot topic with plan sponsors and participants. Through bull markets or bear markets, there is always something topical to incorporate into the portfolio. We’ve had participants ask us about tech, real estate, gold, crypto, emerging markets, you name it! But most of these are not appropriate for Fiduciaries to provide on their plan menu. The simplest advice we give to plan sponsors is to exclude anything that is too concentrated in any single investment theme. The best way to judge if an investment option is appropriate is to check your Investment Policy Statement (IPS) for the plan. Think of your IPS as your plan’s GPS. It tells you where you’re going, how to get there, and when to reroute. Without it, you’re flying blind. And just like a GPS, it needs regular updates to stay accurate.
Your policy should outline:
Working with a trusted investment advisor is a way to clearly outsource the implementation of the IPS.
Imagine an employee who’s unsure about enrolling. They might be worried about investing, confused about access, and unsure what happens if they leave the company. Without guidance, they might opt out entirely. That’s why education isn’t optional - it’s essential.
Regular financial education and financial-wellness programs continue to make an impact. It is essential that employees understand the benefit being offered to them, but also that they grasp the magnitude of how important it is to save for retirement. With life expectancies inching up (especially for women!), healthcare costs rising, the social security reserve dwindling, and defined benefit pension plans phasing out across the private sector, it is recommended that the American workforce needs to save an average of 10-15% of earnings annually just to maintain their current lifestyle in retirement.
The rules for retirement plans can be quite complicated. If there is any barrier to entry, we often find that employees defer enrolling until they understand their options better. For our clients, we hold semi-annual group education meetings for their employees, focused on 401k plan and options available. We also offer enrollment assistance for new hires and one-on-one financial planning services to all participants throughout the year.
The lesson weaved through every section above is that having the right advisors in your corner makes everything easier for plan sponsors and participants. Have your team in place. Your team should be comprised of investment advisors, participant services, third-party administrators, and recordkeepers. Depending on your plan and firm size, it is also beneficial to have an internal retirement plan committee or retirement plan representative on your finance committee or board.
Navigating retirement plans can feel complex, but it doesn’t have to be isolating. Whether you're reevaluating your current setup or simply curious about how others are approaching it, having the right perspective can make all the difference. At The Zelniker Dorfman Carr & Heritage Group, we're here if you ever want to explore ideas, ask questions, or take a fresh look at your plan.
You can find us at https://advisors.ubs.com/zelnikerdorfman/Index.htm or reach out to me directly at Molly.Townsend@UBS.com.
Molly Townsend is a Financial Advisor with UBS Financial Services Inc. a subsidiary of UBS Group AG. Member FINRA/SIPC in 1285 Avenue of the Americas New York, NY 10019 The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. Investors should be aware that alternative investments are speculative, subject to substantial risks (including the risks associated with limited liquidity, the use of leverage, short sales and concentrated investments), may involve complex tax structures, strategies and may not be appropriate for all investors. Asset allocation and diversification strategies do not guarantee profit and may not protect against loss. The views expressed herein are those of the author and may not necessarily reflect the views of UBS Financial Services Inc.
Important additional information applicable to retirement plan assets (including assets eligible for potential rollover, distribution or conversion)
This information is provided for educational and discussion purposes only and are not intended to be fiduciary or best interest investment advice or a recommendation that you take a particular course of action (including to roll out, distribute or transfer retirement plan assets to UBS). UBS does not intend (or agree) to act in a fiduciary capacity under ERISA or the Code when providing this educational information. Moreover, a UBS recommendation as to the advisability of rolling assets out of a retirement plan is only valid when made in a written UBS Rollover Recommendation Letter to you provided by your UBS Financial Advisor.
With respect to plan assets eligible to be rolled over or distributed, you should review the IRA Rollover Guide UBS provides at ubs.com/irainformation which outlines the many factors you should consider (including the management of fees and costs of your retirement plan investments) before making a decision to roll out of a retirement plan. Your UBS Financial Advisor will provide a copy upon request.
The technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions.
Important information about brokerage and advisory services. As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business and that you carefully read the agreements and disclosures that we provide about the products or services we offer. For more information, please review client relationship summary provided at ubs.com/relationshipsummary.
© UBS 2025. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS. UBS Financial Services Inc. is a subsidiary of UBS Group AG. Member FINRA/SIPC.
.jpg){kind=spacer}
.jpg){kind=spacer}
.jpg){kind=spacer}
.jpg){kind=spacer}
.jpg){kind=spacer}
.jpg){kind=spacer}
