A 401(k) plan sponsor is the business, organization, or entity that establishes (or adopts), offers, and administers the retirement savings plan for eligible employees (also known as plan participants). A plan sponsor is often the owner or operator of a company that offers the plan as a workplace employee benefit to attract and retain workers. The plan sponsor can include retirement plan committees, C-suite executives, human resource departments, benefits personnel, unions, etc.
The 401(k) plan sponsor is also responsible for ongoing plan maintenance, as well as communication with eligible and potential plan participants. The 401(k) plan sponsor must also ensure the plan is compliant with all applicable Internal Revenue Service (IRS) and Department of Labor (DOL) Requirements.