If you’re a business owner or retirement plan administrator, you need clear and unbiased advice from an experienced fiduciary partner.
As a co-fiduciary on your retirement plan, we can offer the specialized resources and expertise you need to make informed decisions for your employees.
We’ll help you by:
- Reducing your fiduciary liability
- Simplifying your operations
- Lowering your costs
- Giving you transparent and candid advice
We work with many retirement plans, including:
- Profit Sharing
- SIMPLE IRA
- Traditional IRA
- Roth IRA
If you’re ready to get help with your retirement plan, give us a call at
Bundled Retirement Plan Services
Red Door will serve as a 3(21) co-fiduciary on your plan and assist you in ensuring that your fiduciary compliance requirements are met through annual reviews, plan benchmarking, 404(c) compliance and more.
Preparation and Review of Investment Policy Statements
After discussing your investment objectives, policies and constraints, we’ll create and maintain a policy and an investment policy statement (IPS) that meet the ERISA requirements.
Investment Fund Selection
Our professional advisors will lend their expertise to your retirement plan committee for investment fund selection. During your initial policy consultation, we'll develop a specific fund menu for your plans that is consistent with the Department of Labor’s ERISA requirements.
Your employees need to be educated on the plans they’re offered. We’ll coordinate education meetings and customize the content for different employee groups as necessary.
If your company has a retirement committee, we’ll educate its members on your company plan’s performance.
Investment Fund Monitoring
We regularly perform investment fund monitoring, evaluating our clients’ funds using an independent and proprietary process based on your IPS, the investment process and philosophy, and portfolio characteristics. We’ll replace any poorly performing funds and map money into more appropriate investment choices.
We'll regularly offer performance reporting, and you’ll receive quarterly fund monitoring reports from your Red Door advisor, along with a written annual fiduciary review.
Plan Design Review
If you’re not sure how your current plan is performing, we can conduct a thorough retirement plan evaluation, focusing on regulatory compliance and good business practices.
Plan Search Support
Looking for a new retirement plan? We can manage your request for proposal process, support your plan conversion, or make sure your current plan is working with a periodic benchmarking review.
We’ll coordinate a selection of vendor finalists for the retirement committee’s evaluation by scheduling, recommending evaluation criteria, and conducting post-interview reviews. During the interview process, we’ll be your advocate to make sure that your vendor is the best fit for your company.
Terminated Participant Rollover Services
We offer a fully-licensed retirement center to advise terminated employees as they transition into independent retirement options.
Fiduciary Risk & Responsibility
Frequently Asked Questions
A fiduciary is the person or business who keeps its participants’ best interests in mind while making decisions about their money and assets. The U.S. Department of Labor outlines many of the fiduciary responsibilities for retirement plan sponsors.
Who is a fiduciary?
Anyone who uses discretionary control or authority over retirement plan assets has a fiduciary responsibility. This responsibility could include the plan’s trustees, administrators or members of a plan’s investment committee.
What are the fiduciary’s responsibilities?
A fiduciary must run a retirement plan solely in the interest of its participants and beneficiaries. They must diversify investments to minimize the risk of large losses, follow the terms of the plan (consistent with ERISA) and avoid any conflicts of interest.
Fiduciaries must carry out their duty just as an expert would. This is called the “Prudent Expert” rule. If the sponsors of the plan don’t have the expertise they need, they must hire someone who does.
What risks are associated with being a fiduciary?
Fiduciaries who don’t follow the principles of conduct may be personally responsible for restoring any plan losses or profits made through the improper use of plan assets. Courts may take appropriate action against a fiduciary who breach their duties under ERISA.
Why should I consider a co-fiduciary?
As written above, the ERISA rules require fiduciaries to have a certain level of investment knowledge and skill when selecting plan investments. Many retirement plan sponsors are uncomfortable with this responsibility and would rather share it with a qualified investment professional.
Before you consider a co-fiduciary, you should understand the different levels of fiduciary assistance.
- Sole Responsibility Fiduciary – “Do it Myself”
- In this role, the plan sponsor takes on full investment liability and doesn’t share it with any outside party. The plan sponsor will select investment options without help from anyone else.
- 3(21) Co-Fiduciary – “Help Me”
- In this arrangement, the plan sponsor can hire an RIA (registered investment advisor) to provide investment, administrative, educational and consultative services. The RIA serves as a co-fiduciary to the plan, but it doesn’t relieve the plan sponsor of their fiduciary responsibilities.
- 3(38) Investment Manager – “Do it for Me”
- A 3(38) arrangement represents the highest level of investment liability transfer possible under ERISA. At this level, the plan sponsor can hire an RIA to select and monitor the investment array and the RIA will accept the authority to manage, acquire and dispose of investment options for the plan.