What is the Difference between a 3(38) and 3(21) Fiduciary?
Most retirement plan sponsors know they need to hire a fiduciary advisor to help them manage their 401(k) or other employer-sponsored retirement plan for the benefit of the plan participants. These sponsors are aware of their fiduciary responsibilities and want the help of a fiduciary advisor to offer the best plan possible for their participants and to help mitigate their liability as the plan sponsor.
Broker vs. Fiduciary Choosing the Right Advisor for Your Retirement Plan
The failure to act in a fiduciary capacity while running your company’s plan can expose you to personal liability as a plan fiduciary. This could even include a requirement to personally make the plan whole for any losses resulting from a breach of your fiduciary responsibilities.
Choosing the right advisor for your company’s retirement plan is one of the most important decisions that you will make as a plan sponsor. Increasingly, the right choice is to work with an advisor who is a fiduciary and who acknowledges that role.