Navigating Your 401(k) Service Providers

Nate Moody, CPFA – RETIREMENT ADVISOR, PARTNER

December 2024

🚗 Navigating Your 401(k) Service Providers 🚗

Managing a 401(k) plan is like maintaining and driving a car—each component plays a vital role in getting everyone safely to their destination: retirement. Here’s how the key players in a 401(k) plan align with parts of your car.

🔑 Plan Sponsor: The Vehicle Owner
As the Plan Sponsor, you’re the owner of the car. You’re responsible for ensuring the vehicle is in good condition and safely transports your passengers—the plan participants—to their retirement goals.

🚗 Recordkeeper: The Chassis
The Recordkeeper provides the foundation for your plan, much like the chassis of a car. The make and model vary depending on your financial institution and platform, but this framework determines the structure and functionality of your plan.

🔧 Third-Party Administrator (TPA): The Mechanic
The TPA is your trusted mechanic. They ensure your plan operates within legal and regulatory specifications, fixing issues and keeping everything running smoothly under the hood.

🗺️ Advisor: The Driver or GPS
Your Advisor can play one of two roles:

As a 3(38) fiduciary, they take the wheel and steer the plan, making discretionary investment decisions on your behalf.
As a 3(21) co-fiduciary, they serve as your GPS, guiding you with recommendations while you remain in the driver’s seat.

🔍 Auditor: The Annual Inspection
Just like your car requires regular inspections to ensure safety and compliance, your plan’s auditor performs a yearly review to confirm that everything is in proper working order.

🛢️ Investments and Contributions: The Engine and Gas
While not technically ‘service providers,’ the engine (investments) and the gas (employee and employer contributions) are what power your plan forward. Without these key elements, your 401(k) won’t reach its full potential.

Ready to check under the hood of your plan? Let’s make sure your vehicle is ready for the long road ahead!

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Securities Disclosure: Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Investment Advisory Services offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor. | 130 Springside Drive, Suite 300, Akron, OH 44333-2431 | Telephone: (800) 765-5201 | Lebel & Harriman, LLP and Lebel & Harriman Retirement Advisors are separate entities from Valmark Securities, Inc. and Valmark Advisers, Inc.