Chances are, the typical 401(k) plan sponsor won't purposely engage in nefarious acts but they may unknowingly cross the fiduciary line. What do you do? (Photo: Shutterstock)
They say the road to "the other place" is paved with good intentions. Usually, this is someone else's problem. But what happens when that "someone else's" problem trespasses onto your domain? Do you look the other way? Or will that implicate you? Do you blow the whistle? Or will that get you fired?
Chances are, the typical 401(k) plan sponsor won't purposely engage in nefarious acts. There may be times, however, when otherwise innocent and perhaps even common sense actions unknowingly cross the fiduciary line (see "How Many Small Business Owners Accidentally Trap Themselves with This Treacherous 401k Fiduciary Conflict?" FiduciaryNews.com, August 13, 2019).
If you're a service provider,you may be in a better position to see this transgression than the plan sponsor. This makes sense. You have more experience in the fiduciary world of retirement plans. Does this mean that you are under the obligation to say something when you see something?
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Christopher Carosa
Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).
