While the 401(k) plan has become a typical part of a company’s benefit program, the players seem to have become more complex. Following is a basic explanation of some of the key parties and their roles.

Regulatory Agencies – There are several regulatory bodies that review your company’s 401(k) plan. The most common entities are the IRS and the Department of Labor (DOL). In particular, the DOL has recently begun to audit and scrutinize more plans to make sure they comply with ERISA regulations. The agency has the ability to hand out some severe fines for plans that are not in compliance.

Plan Sponsor – This is the company that provides the plan to its employees. The Plan Sponsor has the ultimate fiduciary responsibility and liability when it comes to the retirement plan. As such, the Plan Sponsor should operate in the best interest of the plan participants and document all of its moves.