Medical practice owners serving as plan sponsors have fiduciary responsibilities under ERISA. Many practices using Empower are unaware of the personal liability partners face if their plan isn't properly benchmarked and monitored. Although Empower itself doesn't act as a fiduciary, some firms hire a 3(38 investment fiduciary service through third-party providers. This can transfer specific responsibilities, but the ultimate oversight remains with the practice owners. A fiduciary review ensures your plan meets industry standards and shields your practice from costly lawsuits.
Holland Capital Management in Doral, FL
The first thing to consider when looking to find a financial advisor in Doral, FL: who are the team members? That’s critical since your financial well-being requires a lot more than just portfolio management. Along with attention to investments, you will likely need other services.
M. Chad Holland CFA, CFP®
About Doral, Florida
Doral
Doral is a city in Miami-Dade County, Florida, United States. One of 34 municipalities in the county, it is located 5 miles (8 km) west of Miami International Airport and 13 miles (21 km) west of Downtown Miami. Doral occupies 15 square miles (39 km2) bordered on the west by the Ronald Reagan Turnpike and the Florida Everglades, on the north by the town of Medley, on the east by the Palmetto Expressway and on the south by the Dolphin Expressway and the city of Sweetwater.
The Problem
Many medical practices assume that their providers have fiduciary responsibility, but in reality, it belongs to the practice owners.- Empower does not act as a fiduciary; however, some practices hire third-party 3(38) investment fiduciaries.
- Even with a 3(38) arrangement, sponsors must oversee the process, monitor fees, and exercise prudence.
Why Benchmarking Matters
- ERISA requires practice owners to act prudently and in the best interests of their employees when managing retirement plans.
- Benchmarking involves a documented process of reviewing fees, funds, and services.
- Keeping this record helps protect practice owners from fiduciary claims.
How Holland Capital Helps
- Independent fiduciary benchmarking for medical practices.
- Analysis covers fees, investments, and service arrangements.
- Recommendations enhance fiduciary processes and reduce liability risk without necessitating a change to the recordkeeper.
Our Fiduciary Advantage
Holland Capital Management, led by M. Chad Holland, CFA, CFP, is an independent fiduciary advisory firm. We assist practice owners in establishing a robust fiduciary process that safeguards both physicians and staff.
Schedule a free Empower 401(k) fiduciary risk review for your medical practice.
-
Location
Doral, FL - Hours
Monday - 9am-5pm
Tuesday - 9am-5pm
Wednesday - 9am-5pm
Thursday - 9am-5pm
Friday - 9am-5pm - Phone/Fax
P | 877-733-9435
F | (980) 500-1531 - Email Us
chad@hollandcapitalgroup.com
Frequently Asked Questions
+Do physicians carry fiduciary liability?
Yes. Under ERISA, practice owners who serve as fiduciaries can be held personally liable.
+What does a fiduciary review consist of?
It compares fees, funding, and service providers to those of its peers.
+Does Empower act as a fiduciary?
No. Empower offers recordkeeping services, but the plan sponsor is responsible for fiduciary oversight. Some practices hire a 3(38) fiduciary, but sponsors still retain oversight duties.