A 401(k) fiduciary is a person who owes a duty of care and trust to 401(k) plan participants. The fiduciary must act primarily for the benefit of participants in a particular activity. For 401(k) plans, the Employee Retirement Income Security Act (ERISA) defines the actions that result in fiduciary duties and the extent of those duties. They include:
- Acting solely in the interest of the participants and their beneficiaries.
- Acting for the exclusive purpose of providing benefits to workers participating in the plan and their beneficiaries and defraying reasonable expenses of the plan.
- Carrying out duties with the care, skill, prudence, and diligence of a prudent person familiar with the matters.
- following the plan documents; and
- Diversifying plan investments.