Guest Green92 Posted August 11, 2006 Posted August 11, 2006 Does anyone see any fiduciary issues resulting from limiting investment options in a 401(k) plan to a series of target retirement date funds and a stable asset fund?
rcline46 Posted August 11, 2006 Posted August 11, 2006 There are fiduciary issues in the selection of ANY and ALL funds for investment. The fiduciary needs to show how the funds were selected (why, compared to what, decision process, etc). The fiduciary must prove the acted as a 'prudent man' in the selection. If those are the ONLY funds offered by the broker, and the broker gets a commission then it becomes questionable if the prudent man rule was followed. You need to read the DoL rules and booklets on fiduciary compliance and 404©. ALso read the explanations of the new PPA 2006 on investment advice.
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