401(k) Plan Sponsors

A 401(k) plan sponsor is the employer or organization that establishes and maintains a 401(k) retirement savings plan for its employees. The sponsor is responsible for designing the plan, selecting and monitoring investment options, ensuring compliance with federal regulations, and managing plan administration. They may delegate certain tasks to third-party administrators, recordkeepers, or investment advisors, but ultimately remain accountable for the plan’s operation and fiduciary duties. Plan sponsors can be businesses, non-profits, or government entities, and their goal is to help employees save for retirement through tax-advantaged contributions, often including employer matching or profit-sharing contributions.