SSSCCH

It sounds like it does.

WOW! I personally did not enter the 3(16) market, the company I work for did. I am aware of the exposure the company has taken on...my question has to do with me and my staff and our PERSONAL liability. We are being asked to sign 5500s for which we are not the fiduciary for all aspects of the employers business. Yet we will be held to the fiduciary standards due to the fact that our names are on this form. that is my question...what is the personal liability and how comfortable are others in the 3(16) arena with signing the 5500.

You are correct!

That's what I was afraid of Even if the client is sued and the company indicates that we were signing on behalf of the organization, I don't think that will hold water.

Thank you! It is not expressly mentioned in the service agreement that we will be signing the 5500 but we are considered the plan administrator for certain functions, not all. I'm concerned that by me and my staff be asked to sign as plan administrator without the signature of the plan sponsor, we are taking on some liability for which we could be personally held accountable. I would love to hear from others who are in this situation and how they are handling.

I was wondering if anyone had an opinion on an individual (i.e. Account Representative of a TPA) signing as plan administrator for a 3(16) defined contribution plan. I understand that under these circumstances that only the signature of the plan administrator is required. However, if the TPA is not a fiduciary for all aspects of the plan (i.e. payroll, personnel) but day to day functions (QDRO review, hardship approval) can the individual signing be open to personal liability should suit be brought against the plan sponsor and their fiduciaries? What does the IRS definition of being a 3(16) encompass? Should the employer still be required to sign as the plan sponsor?