What is a Required Minimum Distribution (RMD)?

An RMD is the minimum amount you must withdraw each year from certain retirement accounts—such as traditional IRAs and 401(k)s—once you reach the IRS-mandated age. The IRS requires these withdrawals so that tax-deferred money eventually becomes taxable. FSRP can help you understand your RMD amount and timing so you stay compliant and avoid penalties.

When do I need to start taking Required Minimum Distributions (RMDs)?

You must begin taking RMDs from your traditional retirement accounts starting the year you reach the IRS-required age (currently 73). Your first RMD can be delayed until April 1 of the following year, but doing so may result in two distributions in the same year. 

What happens if I don't take my RMD?

If you miss an RMD, the IRS may impose a penalty on the amount not withdrawn. This can be reduced or waived if corrected quickly. FSRP works with you to help ensure your RMDs are taken correctly and on time so you avoid unnecessary penalties.

What are the 2026 401k contribution limits?

The basic elective deferral limit: $24,500 (up from $23,500 in 2025)
For participants age 50 or older (catch-up contribution): $8,000
For participants age 60–63, a “super catch-up” applies: $11,250 

What is a Safe Harbor 401(k) plan?

A type of 401(k) plan where the employer commits to mandatory Safe Harbor matching or non-elective contributions, which exempts the plan from ADP/ACP nondiscrimation testing. This allows owners/HCEs to maximize savings without being held back by employee participation levels.

What are typical employer contribution options under Safe Harbor?

Options include: (a) Non-elective — employer gives e.g., at least 3% of pay to all eligible employees whether they contribute or not; (b) Basic match — 100% match on first 3%, plus 50% on next 2%; (c) Enhanced match — e.g., 100% match up to 4% or more.

What is a fiduciary advisor in the context of a 401(k) plan?

A fiduciary advisor is an advisor legally obligated to act in the best interests of plan participants, handling investment recommendations, fee monitoring, documentation, and compliance oversight — instead of just giving general guidance.

Why should an employer partner with a fiduciary advisor?

The advisor can share fiduciary responsibility, bring structure/documentation to decision-making, stay abreast of regulation changes, and help protect the company and participants from oversight gaps.

Are all advisors fiduciaries?

No — an advisor may not always have the fiduciary duty. Employers should explicitly verify that the advisor commits to a fiduciary standard and discloses conflicts of interest.

Why is benchmarking 401(k) fees important for employees?

Many plan fees are deducted directly from participant accounts, benchmarking helps ensure those fees are reasonable compared to similar plans — thereby maximizing what employees keep for retirement.

What types of fees should plan sponsors review when benchmarking?

Key fees include record-keeping/administrative fees, investment management (expense ratios), advisory fees, and any hidden or flat-dollar fees that disproportionately affect lower-paid employees.

How often should fee benchmarking be performed?

The U.S. Department of Labor recommends every 3–5 years, although if the plan grows quickly or experiences changes, more frequent reviews can benefit participants.

Beyond cost, what else should benchmarking examine?

Service quality, investment menu, vendor responsiveness, and how the plan stacks up in total value —not just lowest cost.

What can happen if a plan sponsor fails to benchmark?

The sponsor may fail to meet fiduciary responsibilities, leave savings on the table (higher fees than necessary), and expose the company to regulatory or legal risk under Employee Retirement Income Security Act (ERISA)/DOL oversight.