Help Center
TIP #1
UNDERSTAND IT'S A PROCESS (AND WORK)
Your advisor will work with your provider to do most of the heavy lifting. Your role is generally limited to providing the required information needed to make the change (and making plan decisions/ signing required documents of course).
TIP #2
UNDERSTAND THE TIMELINE
Most 401k providers require you give them advanced notice before you can terminate their
services (90 days is common). (And the entire process typically takes 60-90 days.)
TIP #3
UNDERSTAND THE FEES INVOLVED
When you switch providers there is often a termination fee (particularly with insurance
companies) charged by the provider losing the business (can range from a few hundred to a
few thousand dollars) and the new provider often has an establishment fee to set-up
the new plan.
TIP #4
AVOID THIS COMMON MISTAKE
Don’t stop sending plan contributions to your outgoing provider until the blackout period
starts. (Timely deposit of contributions is one of the top 401k failures and can be costly.)
TIP #5
CHECK ON PAYROLL INTEGRATION FIRST
Don’t assume your new 401k provider integrates with your payroll. Check this and verify
before making the switch or it may end up costing you valuable time and expense.
TIP #6
CONFIRM ERISA COMPLIANCE
Be sure you confirm which provider will complete the nondiscrimination testing and/or
Form 5500 for the prior year (if not done - typically outgoing provider) and the current year
(typically new provider).
Talk to one of our fiduciary advisors for additional information and help with your plan compliance.
Contact us for more information.
Phone: (480) 364-7401 | Email: hello@cognisgrp.com | Request Free Consultation