Employer retirement plan questions, answered.

How are retirement plan advisors paid?

Common arrangements are a flat fee, a percentage of plan assets, an hourly or project fee, or commissions and revenue sharing paid by the plan’s investments. Fees can be paid by the company, from plan assets, or both, and the plan document should say how. Advisors who are covered service providers must disclose their compensation to you in writing under ERISA section 408(b)(2).

How Strong Tower is paid: Compensation, costs, who pays and conflicts of interest are disclosed through the applicable plan service-provider disclosures (including ERISA 408(b)(2) disclosures) and engagement agreements. Not all services are free.

Can we change advisors without changing our recordkeeper?

Often, yes. Many recordkeeping platforms let the plan sponsor replace the advisor on the plan. Changing recordkeepers is a bigger project that usually involves a blackout period, and participants must get 30 to 60 days’ advance notice before one begins.

Is our company too small for a 401(k)?

Not necessarily. Very small employers often compare a SIMPLE IRA, SEP or solo 401(k) with a small 401(k), and the SECURE 2.0 credits can offset some early costs for employers with 100 or fewer employees.

Strong Tower Advisors has no fixed plan minimum. Scope and review cadence are tailored to the employer and documented in the engagement.

What will our employees notice if we change funds or providers?

Before fund changes, participants receive notices explaining what is changing and where existing balances will go. A recordkeeper change usually brings a blackout notice, a new website login and new statements. Enrollment or education meetings help employees understand what changed.

Does hiring a 3(38) investment manager remove all of our responsibility?

No. According to the Department of Labor, an employer that appoints a qualified investment manager isn’t liable for that manager’s individual investment decisions, but it remains responsible for prudently selecting the manager and monitoring it periodically.

Do you work with our current recordkeeper or TPA?

We work with plan providers, money managers and TPAs, and can work alongside an employer’s existing providers or help evaluate alternatives. [[PLACEHOLDER: RECORDKEEPER / TPA PARTNERS]]

Is this page legal or tax advice?

No. It is general education about employer retirement plans. Plan design, ERISA compliance and tax-credit questions depend on your facts, so involve your ERISA counsel, TPA and CPA.