401(k) Plan Provisions That Are Bad Ideas

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Smith and Wesson Mountain Bikes. Life Savers Soda. Colgate Kitchen Entrees. Arch Deluxe. Heaven’s Gate. The Adventures of Pluto Nash. History is littered with historic flops and bad ideas. When it comes to retirement plan design, plan provisions don’t look like such a bad idea as a toothpaste manufacturer selling ready-made meals. Based on my 14 and a half years in the retirement industry, there are numerous plan features that can land you in a whole lot of trouble as a retirement plan sponsor because it creates unnecessary plan errors. So this article is about trying to inform you which retirement plan provisions are bad ideas that you should avoid.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ary Rosenbaum, The Rosenbaum Law Firm P.C. | Attorney Advertising

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