Employers --who make decisions about their 401k plans--are required by ERISA to employ a prudent process in the management and monitoring of their 401k plan investments. Plan Sponsors are required to not only look at the right information but also do it in the right way.

Five best practices for fiduciary compliance of 401k investments. The five steps are practical moves to minimize your risk of a fiduciary liability lawsuit;

1. Review plan investments once a year

2. Produce a written report covering, the investments and their use by the participants. (Written reports are good evidence of due diligence)

3. Make decisions from the report about the quality and use of the investments

4. Review the plan