Typically, 401(k) plan administrators plan and launch 401(k)s for businesses, ensure that they comply with all rules and regulations, monitor the plan and act as gatekeepers for plan disbursements, according to CC Coaching and Consulting. Plan administrators also provide disclosures about the plan to regulators as required and perform tests to ensure that the plan does not discriminate against certain employees.Continue Reading
In most cases, 401(k) plan administrators are third-party services hired by the company or may be record keepers handling a bundled 401(k) plan. Administrators will often charge a flat fee for administering the 401(k), along with a smaller fee per person participating in the plan. This plan may be paid for by the employer or the employees, though in some cases the plan administrator may take their from the plan's proceeds. In the last option, the administrator is required to fully disclose this fee in plan records and ensure that it is transparent to the hiring company.
A bachelor's degree in human resource management, business management, business administration, finance or similar area is required for most plan administrators, according to Study.com. Administrators should also have excellent communication skills, be familiar with accounting, human resources and management software, and may need to get certification with a recognized human resources organization.Learn more about Financial Planning