Revenue Sharing 401 K Plan

All 401 k plans require three basic plan administration services asset custody.

Revenue sharing 401 k plan. It is imperative that plan sponsors with fiduciary oversight of their organization s 401k retirement plan understand the distribution systems that most investment management organizations use and how they share revenue revenue that is an assets of the 401k plan. Having worked on many participant directed 401 k plans i would state that more than 95 of the 401 k plans with an ips have an ips that contains no language concerning revenue sharing. In all cases however the payments prevent the free interchange of objective advice. Revenue sharing 5 reasons for 401 k fiduciaries to avoid it.

In light of these potentially confusing revenue sharing relationships a plan sponsor might want to find out if their 401 k professional is acting as a fiduciary or a commissioned broker. 401 k revenue sharing fiduciaries vs. The importance of revenue sharing.