Our Differnce

There are major differences between advisors who merely sell products and registered investment advisors.

In the case of 401K Plan Advisors, you will work with an independent advisor who specializes in 401(k) management services, and issues directly related to the Employee Retirement Income Security Act (ERISA).

The selection of an advisor is in and of itself, a 401(k) fiduciary function. Therefore, it is  important to choose a professional that meets the following criteria.

  • Independent from outside third parties

The investment advisor to a retirement plan should:

  • Be free from any conflicts of interest, while following the fiduciary standard.
  • Work for the exclusive benefit of the client (i.e., plan sponsor) and the plan’s participants and their beneficiaries.

401K Plan Advisors is an independent advisory firm. The firm does not accept any compensation from third parties. We are fee only, thereby avoiding potential conflicts of interest.

  • Fiduciary protection

In all cases, the sponsor of a retirement plan is a fiduciary. A sponsor can substantially reduce, and in some cases, nearly eliminate its fiduciary responsibilities and liabilities for the selection, monitoring and replacement of plan investment options by:

  • Transferring them to an investment advisor that will accept responsibility and liability for such duties; and
  • Documents this in a written contract.

401K Plan Advisors will accept fiduciary responsibilities—and liabilities—and will state this in a written contract with your company.

  • Prudent investments

The advisor to a plan should provide a legally sound, academically oriented, and cost-efficient prudent investment process that’s designed to protect:

  • Plan participants and their beneficiaries; and
  • Plan sponsors.

401K Plan Advisors has a prudent investment process that is documented in its Investment Policy Statement.

  • Exceptional, personalized service
    • The advisor to a plan should provide a high level of service. But that’s not enough.
    • Provision of those services should be enforced by an investment advisory agreement.

401K Plan Advisors enters into a legally binding investment advisory agreement with each client. The agreement acknowledges the firm's delegated responsibilities in a clear and concise way. 401K Plan Advisors’ performance of these duties is reviewed on an annual basis with its plan sponsor clients.

  • Proper advice

The plan sponsor is responsible for all advice associated with its retirement plan.

  • A plan investment advisor should provide advice only at the plan level (i.e., ERISA section 3(38))—not at the participant level—in order to help protect the plan sponsor from liability.
  • Any advice given at the participant level should only be done through the provisions of the Pension Protection Act or under a level fee arrangement.

401K Plan Advisors is highly experienced in the correct way to provide advice regarding a retirement plan. The firm also has procedures in place to help eliminate unnecessary risks a plan sponsor might be exposed to through imprudent advice.


  • Excellent education
    • The advisor to a plan should provide a customized investment education program to plan participants.
    • The plan should be in accordance with Interpretive Bulletin 96-1; Participant Investment Education; Final Rule, issued by the Department of Labor.

401K Plan Advisors measures the success of its education program by focusing on the investment behavior of plan participants. The firm educates a plan sponsor’s administrative staff to limit potential problems raised by the difference between “education” and “advice” as described in Interpretive Bulletin 96-1.

  • Reliable expertise

The investment advisor to a plan should have “book smarts.”

  • The education, training and credentials of the advisor should have earned the individual respect in the retirement plan community.
  • An advisor should be able to articulate and demonstrate how his or her expertise is a benefit to a plan sponsor, and each plan participant and his or her beneficiaries.

401K Plan Advisors is committed to continuing education and maintaining credentials that provide an in-depth understanding of changing regulations, as well as processes and duties related to 401(k) plan sponsors.