Family Business Succession Planning

The Service Questions


It is important that whatever vendor you choose provides great service. This is a factor that will really differentiate the vendors. When looking for a vendor it is crucial that the vendor is reputable, easily accessible, and helpful. You are going to be paying them so it is important that they commit to earning it through good customer service. The other thing to consider here is to understand who is responsible for what. You will want to be very clear as to the duties and responsibilities of the 401K platform, the financial advisor (if using one), the third party administrator and what your company is responsible for in regards to servicing the 401k plan.

Some questions that should be addressed are:

  1. Who is going to assist you in the enrollment of new participants?
  2. Who helps with distributions, withdrawals, processing, and statements?
  3. Will you be assigned a customer service representative?
  4. Will there be an advice service?
  5. Will loan options be available? Who will monitor the loans?
  6. What can we expect in regards to participant education?
  7. Who will guide me through any compliance responsibilities?
  8. What will the annual review consist of and who will be conducting it?