Complying with ERISA Section 404(c)

ERISA 404(c) applies to 401(k) and other defined contribution plans where participants are allowed to direct their own investments. While compliance with 404(c) is voluntary, it does offer you some liability protection and also provides your plan participants with a greater say in their retirement investments.

In a 404(c) plan, participants have their own account and have the ability to exercise control over the assets in their account, including the manner in which they are invested. While 404(c) offers protection to plan fiduciaries for the results of investment choices made by plan participants, it does not automatically relieve you of fiduciary liability with respect to the selection and monitoring of investments options offered within your plan.

In order to obtain the protections offered by Section 404(c), plan sponsors must meet specific requirements. View our 404(c) Checklist to learn how Symetra Financial and your TPA can assist you in achieving a 404(c) compliant plan.