A fiduciary is any individual or group who makes decisions in administering and managing the 401(k) plan or who has the power to control the plan’s assets. Generally, a plan’s fiduciaries will include the trustee, investment managers, and the plan administrator. Under federal law, fiduciaries are subject to certain standards, called fiduciary responsibilities, because they act on behalf of the plan participants.
Fiduciary responsibilities include:
- Acting solely in the interest of plan participants
- Selecting a diverse menu of investment options
- Monitoring investment performance
- Paying only reasonable expenses and fees for the plan
- Providing adequate information to participants in a timely manner
