In the last feature about IRS Form 5500, we examined a handful of sections that provide plan data you can use to power conversations with prospects and build loyalty with current clients. Below is a continuation of this analysis, with additional sections and strategies for using the information to your advantage, and to add value for your clients.
Plan Characteristic Codes
In section eight, plan sponsors designate plan characteristic codes, which present additional opportunities. For example, a plan may allow participants to self-direct while the plan elects not to be 404(c). The plan sponsor may not even be aware that he or she is personally liable for all the investment decisions participants are making. Here, you can point out the liability the plan sponsor has by not adhering to mandates associated with the various codes.
