Putting a Prudent Process in Place

The Investment Policy Statement (IPS) is one of the first items that the Department of Labor will request from a 401(k) Plan Sponsor in an audit. When it is current and followed, the IPS defines the steps that will be taken to select and monitor the 401(k) Plan investments. The process must be prudent, yet flexible enough to allow for an ever-changing market environment. Most 401(k) Plan Sponsors already have an Investment Policy Statement, but frequently, it is out of date, inadequately followed, or inconsistent with best practices.

IPS Check

1. Does your IPS include the current 401(k) Plan investments?
2. Is the IPS language consistent with the most recent regulatory guidance?
3. Does the IPS specify how to select and monitor Plan investments?
4. Are you performing all actions specified in the IPS?

We look forward to working with you, and when applicable, your ERISA counsel, to review your current investment policy statement. If you are a 401(k) Plan Sponsor and do not have an investment policy statement already, we will design an investment policy statement around your current investment structure and monitoring process. Every 401(k) Plan needs an Investment Policy Statement.