fiduciary perspective

More importantly, whether or not the participant actually qualifies, you as the administrator (I assume) may rely on the employee's certification that they satisfy the conditions of the loan or coronavirus-related distribution. So in your role as the administrator, I would argue that it's not your job to figure out if they actually qualify, but to permit the distribution if they certify to you that they indeed satisfy the conditions stated above by ratherbereading. That said, I agree with MoJo above, that if the father was a dependent, then 4(A)(ii)(II) would have been satisfied, and this is a permissible loan.

As far as I know, ERISA does not prohibit revenue sharing or specify how allocations should be made, so it really comes down to whether or not the plan sponsor (or committee) has a prudent process in place around these decisions. A review of Advisory Opinion 2013-03A may be a good place to start; however, in the footnotes, the DOL specifically states that the "letter does not address any fiduciary issues that may arise from the allocation of revenue sharing among plan expenses or individual participant accounts or where the employer has the obligation to pay plan expenses.

In case it helps to put numbers behind the question, a recent Callan survey showed that ~81% of plan sponsors engage an investment consultant. Now to be fair, we can't assume that all of those consultants engage in RFP work on a regular basis. Similar to what a few folks reported above, our firm will either have RFP services baked into the annual retainer, or hire out on a flat project fee basis. You'll also want to consider the sophistication of your committee: are they familiar with concepts like revenue sharing, fee levelization, limited vs. open architecture, etc.? If so, it may be within their skillset to perform the RFP in-house. If not, we would seriously advise hiring a third party to assist with the project. Remember that your job as a fiduciary is to ensure that your fees are reasonable for the level of services provided. While reading through RFPs will help you understand what services are available, and at what cost, it's hard to quantify or measure the quality of those services without personal experience. For example, for plans similar to your size, most bids will propose offer custom marketing solutions; however, this could mean anything from slapping a logo on standard templates, to full customization of the website & print materials to your company's look and feel.

That was my understanding as well. Thank you for the confirmation.

§72(p)(2)(D)(ii) states that "all plans of an employer (determined after the application of such subsections) shall be treated as 1 plan." Does this mean that if an employer (Public school district) has both 403b and 457 plans available, that there is an aggregate $50,000 available for loans between the two plans? Or is there an exemption that allows one to have $50k borrowed under the 403b, and an additional $50k borrowed under 457?

Do you have a source for this? I'm not doubting your word at all - just want to see the text it comes from.

Please refer to page 8 (Chapter 4) under the heading "Figuring Your Years of Service" from Publication 571 http://www.irs.gov/pub/irs-pdf/p571.pdf