401(k) Plan Administrator Fiduciary Responsibility

Written by True Tamplin, BSc, CEPF® | Reviewed by Editorial Team

Updated on December 13, 2022

Fiduciary Duty Defined

If your 401(k) advisor has fiduciary responsibility, it means that they are obligated to act not only in their own best interest and the interest of your employer funding the plan, but also in your own best interest. Fiduciaries are required to make decisions to ensure that your plan is as successful as possible.  

401(k) Plan Administrator Fiduciary Responsibility FAQs

What does a 401(k) plan do?

A 401(k) plan is a retirement plan offered by an employer designed to help employees save for retirement.

What is 401(k) Plan Administrator Fiduciary Responsibility?

If your 401(k) advisor has fiduciary responsibility, it means that they are obligated to act not only in their own best interest but the interests of the employer funding the plan and employees participating as well.

What is the difference between a Roth 401(k) and traditional 401(k)?

With a Roth 401(k), taxes are paid as money is put into the retirement account. With a traditional 401(k), taxes are paid as money is taken out.

Are there other retirement savings plans other than a 401(k) plan?

Alternatives to 401(k) plans include traditional IRAs, Roth IRAs, pension plans (if your employer offers one), and 403(b) retirement plans for employees of non-profit organizations.

How do you get into a 401(k) plan?

Contributing to a 401(k) plan is traditionally done through an employer. Most employers automatically enroll you in a 401(k) that you may contribute to at your discretion. Self-employed workers may enroll in a 401(k) plan through an online broker.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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