Family Business Succession Planning

Step Three: Create the Request For Proposal


This part is easy now that we have gone through the process of identifying our objectives and questions. In the RFP it is important to include:

  • Title
    • Name of company
    • Company address
    • Contact Information
    • Deadline for completion
  • Company and Current Plan Overview – provide a background about your company and about the plan itself. Be certain to include:
    • The number of employees eligible vs. participating in the plan
    • The eligibility requirements
    • Company match and the vesting schedule
    • Restrictions on investment changes, if any
    • If loans are offered or not – the number outstanding
    • Are after tax contributions are allowed
    • Describe the current investment options-market value of each
    • Monthly contribution rates
  • Overview of Objectives – Consolidate and make a list of the objectives that are important to you and list them in order of importance. Include any plan improvements you would like to see and share your areas of disappointment with the current plan.
  • Questionnaire Section – Take the list of questions that you came up with earlier in the process and then consolidate this list based on what’s most important to your company. Feel free to save a few of the tough questions for the 401K vendor interviews.