Monday, March 1, 2010

401(k) Fiduciary Risk Management

The illusions of hope are apt to close one's eyes to the painful truth.
—Harry F. Banks

ERISA, and the regulations under it, are often lamentably obscure—to describe them as a tangled web does not do them justice. —Mark R. Kravitz

That...is what makes ERISA cases fun for litigators like me - nothing is ever simple, even the issues that one would think should be. This [results]... from a complicated statute that leaves much to further development by the courts...to the frequent disagreement among circuits (and even among district court judges within the same circuit in some instances) on a variety of issues under the statute. —Stephen D. Rosenberg

Certitude is not the test of certainty. We have been cocksure of many things that were not so. —Oliver Wendell Holmes, Jr.


The foundation of effective 401(k) risk management is the recognition that 401(k) fiduciary responsibility is a “black box”. Neither ERISA nor the regulations define the duties of loyalty, prudence, and disclosure. To make matters worse, a reading of the legal literature leads one to conclude that the appropriate fiduciary conduct is a matter of the unique facts and circumstances of each case.

To read the rest of this article, please go to: 401khelpcenter/Richard Glass link.

Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com

Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. Call us at 425-454-1254 for the Seattle or Bellevue area, or at 1-800-794-401k.

Please visit our website at www.ifclegacy.com to have an independent fiduciary 401k advisor at Integrity Financial Corporation analyze and evaluate your company's 401k plan.

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