Question

For a large bank that offers recordkeeping services for employee benefit plans, which of the following services might typically be provided to 401(k) plan participants? Check all that apply.

a. Internal access to account balance activity information.
b. Call center with at least one operations associate designated to give investment advice to plan participants.
c. Internet access to a transactional web site where participants can change the options selected for their plan, including their salary deferral percentage.
d. Operate the participant loan program, including preparing loan documents and providing Regulation Z disclosures.

Answer 1

A large bank providing services for 401(k) plan participants typically offers internal account access, transactional website functionalities, and may operate the participant loan program. However, while a call center is common, providing investment advice requires specialized licensing, so operations associates may focus on administrative support instead.

Step-by-step explanation:

For a large bank offering recordkeeping services for employee benefit plans like 401(k) plans, participants can typically expect a range of services. These services often include:

• Internal access to account balance activity information, allowing participants to track their contributions and investment growth.
• A call center with operations associates, though they may not necessarily provide investment advice, as this requires specific regulatory compliance and certifications.
• Internet access to a transactional website where participants can make changes to their plan, such as adjusting their salary deferral percentage or reallocating their investments.
• Operating the participant loan program, which includes preparing loan documents and providing Regulation Z disclosures if loans are allowed under the plan.

It is worthwhile to note that while a call center might exist, providing investment advice typically requires individuals with specialized licenses and knowledge in financial advising. Therefore, operations associates may assist with administrative questions rather than offering investment advice.