Most plan sponsors want to have “successful” 401(k) plans. However, the definition of success varies.

As an adviser, part of your role is to help the plan sponsor have a successful plan, primarily taking into account the sponsor’s definition . . . but also considering your own concerns and objectives.

Above is a Checklist for Successful Plans. We created the Checklist to help you work with plan sponsors to identify their definition of a successful plan . . . and then to help them achieve those goals.

Our thinking is that you would work with your plan sponsor clients to identify their one or two most important goals and then benchmark the current status of the plan, so that you can show them evidence in the future that they are accomplishing those goals. In that sense, this checklist contemplates benchmarking, both currently and in the future. Furthermore, benchmarking against comparable plans will help plan sponsors understand the strengths and weaknesses of their plans, so that they can establish objectives based on good information.

Then, every year, the success in accomplishing the goals should be measured and the goals should be monitored and reaffirmed or replaced.

Source: The Adviser Report
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