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What Does a 401(k) Exchange Offer?

What Does a 401(k) Exchange Offer?

August 16, 2022
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What does a 401(k) Exchange offer?

Employers chose a turn-key 401(k) exchange for a wide range of retirement management services including administrative offload, simplified payroll contribution processing, loan and distribution support, time savings, fiduciary risk management, and more.

By becoming a participating employer in an exchange, your plan is managed and supported by a team of experts. The Fiduciary-Plus 401(k) Retirement Plan Exchange® (created in conjunction with Transamerica and TAG Resources) pulls together important parties to help care for your retirement plan, which include:

  • Plan Administrator
  • Recordkeeper
  • Financial Advisor
  • Third Party Administrator
  • Investment Manager
  • Auditor
  • Umbrella Fidelity Bond (where applicable)


Plan sponsors administering a stand-alone 401(k) must take on dozens of on-going responsibilities. With the Fiduciary-Plus 401(k) Retirement Plan Exchange®, that number is reduced significantly. 

Responsibilities handled by the Exchange:

  • 3(38) investment manager appointment
  • 402(g) limit reporting
  • 404(a)(5) notice distribution
  • 404(c) notice distribution
  • 408(b)(2) notice distribution
  • Annual discrimination & coverage testing
  • Annual fee negotiations with vendors
  • Audit completion support
  • Audit firm hiring & monitoring
  • Auto enrollment notice distribution
  • Beneficiary designation form maintenance
  • Beneficiary determinations
  • Blackout notice distribution
  • Census review
  • Corrective distributions
  • Death benefit approval
  • Distribution reporting
  • DOL and IRS issue resolution assistance
  • Eligibility calculations
  • Eligibility notifications
  • Employer contribution monitoring
  • ERISA bond review
  • Error correction monitoring
  • Fiduciary insurance coverage review
  • Force out processing
  • Form 5330 preparation
  • Form 5500 preparation, signing, & filing
  • Form 8955 preparation, signing, & filing
  • Fund change notice distribution
  • Hardship withdrawal approval
  • Loan approval & reporting
  • Loan default monitoring
  • Loan policy administration
  • Lost earnings calculations
  • Participant enrollment assistance
  • Payroll aggregation
  • Payroll file aggregation
  • Plan design review
  • Plan document interpretation
  • Plan document preparation & archiving
  • Plan irregularity notification
  • QDIA notice distribution
  • QDRO determinations & reporting
  • Quarterly investment review meetings
  • Rate change monitoring & reporting
  • Required minimum distributions
  • Safe harbor notice distribution
  • SAR production & distribution
  • SMM notice distribution 
  • SPD production & distribution
  • Spousal consent approvals
  • Termination date verification & maintenance
  • Termination withdrawal approval
  • Trustee duties
  • Review & submit payroll files
  • Vesting verification & tracking
  • Year-end data collection & review

Responsibilities handled by the Plan Sponsor (employer)*:

  • Monitor service providers: Transamerica & TAG Resources
  • Monitor investment platform
  • Upload payroll files**
  • Provide year-end data collection**

Notes:
*Plan sponsor responsibilities are not limited to items noted above
*Plan Sponsors should review their service agreements and fiduciary
responsibilities under ERISA.
**Required, but may be provided by payroll company.


To explore how the Fiduciary-Plus 401(k) Retirement Plan Exchange® may fit your needs, contact us today.