Family Business Succession Planning

Step Six: Conduct an Effective Annual 401K Review


Your 401K should be reviewed at least annually; most plans should be reviewed semi-annually. The plan review should consist of the following:

  • Previous Year Review
    • Plan Activity for the year
    • Loans/Hardships
    • Internet/Phone Activity (any dramatic increase?)
    • Overall Performance – Performance compared to Peers
    • Options to satisfy all risk tolerances (prudent approach)
  • Review the Investment Fund Line Up
    • 22 Point Fund Analysis
    • Review and Update Investment Policy Statement
    • Update Funds – Approved, Watch List, Replace
  • Other Items to Cover
    • Department of Labor/Compliance Changes
    • Updating the Compliance Binder

If plan reviews are done this diligently, recorded and documented, and filed in your compliance binder there would be very little reason for the DOL to question the appropriateness of your 401K. The last part of the review process is to conduct an RFP every three years in order to keep your 401K plan competitive.

This information is for general use with the public and is designed for educational or informational purposes only. It is not intended as investment advice and is not a recommendation for retirement savings.