A 401(k) plan sponsor is also a plan fiduciary and they have the responsibility to prudently run their plan. One major issue for a plan sponsor to figure out is which plan providers will mitigate some of their liability by serving in a fiduciary capacity. The problem is that some plan providers are marketing a fiduciary warranty and it gives many plan sponsors the false impression that the provider offering this warranty is serving in a fiduciary capacity and offering some level of liability protection. To cut to the bottom line, they are not and they are not. This article is about the worthlessness of 401(k) Fiduciary Warranties and why they aren’t worth the paper they are written on.
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