A husband and wife, owners of a local construction company, have an existing 401(k) profit sharing plan. It has been seven years since they’ve started the retirement plan. The advisor associated with their plan has not been in contact with them for the last two years. Last year, the wife was notified about the new fee disclosure regulations. She called the plan advisor and discovered that he was no longer working there. The wife tried to understand what was needed to comply with these fee disclosure regulations but didn’t have time, as the company was involved in several important projects. She decided to get help and found ARK Wealth Advisory Group.

We performed a full analysis and a fee benchmarking report for their plan and identified several concerns:

1. Higher-than-average fees being charged to the employees relative to the services being provided
2. An investment lineup that did not meet ERISA 404(c) requirements
3. Insufficient ERISA fidelity bond coverage
4. No fiduciary audit file on hand
5. No service provided to the owners and the employees

To help get their plan back on track, we started by requesting proposals from different service providers. After assisting the owners with choosing the appropriate service providers, we helped to facilitate the transfer of assets and documentation to the new recordkeeper and plan administrator. Next, we instructed the owners to increase their fidelity bond coverage to at least the required minimum amount. Then we helped them develop a fiduciary audit file and a quarterly service model roadmap for their plan. Finally, we’ve provided ongoing retirement plan services to help ensure that their plan was operating at an optimal level for both the owners and employees.

With our help, the owners:

• Reduced the overall fees being charged and complied with the fee disclosure regulations
• Expanded the investment lineup to cover the necessary asset classes
• Found better service providers to help run their plan
• Created a fiduciary audit file
• Better managed their overall fiduciary liability

Whether you’re in a similar situation, seeking help to improve the overall services provided in your plan, or just want a different perspective from a Financial Advisor who has attained the Certified 401(k) Professional®, Certified Plan Fiduciary Advisor®, and Charted Retirement Plans Specialist™ designations, we encourage you to give us an opportunity to show you the difference of working with ARK Wealth Advisory Group.

The case study presented is provided for illustrative purposes only. Past performance is no guarantee of future results. The information has been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. These strategies do not guarantee a profit or protect against loss and may not be suitable for all investors. Each client’s specific situation, goals, and results may differ. 

Stifel does not offer legal or tax advice. You should consult with your legal and tax advisors regarding your particular situation.