A Perfect 401(k) Prospecting Tool

A Perfect 401(k) Prospecting Tool

401(k) Advisors are active at this time of the year prospecting, profiling and delivering sales presentations in the hope of acquiring new plan clients. Selling season is once again upon us.  I want to make you aware, if you’re not already, of one of the most perfect prospecting tools ever and it’s supplied by the Department of Labor.

Follow this link to the Internal Revenue Service instructions for Form 5500, https://www.dol.gov/sites/default/files/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2016-instructions.pdf

Scroll to page 81 where you will find the ERISA COMPLIANCE QUICK CHECKLIST. The checklist was prepared by the IRS in partnership with the DoL’s Employee Benefit Security Administration and contains fourteen questions, eleven of which if the employer answers any “No”, and three of which if they answer any “Yes”, are instructed to “..review your plan’s operations because you may not be in full compliance with ERISA’s requirements.”  This perfect prospecting tool is a great guide for you in the development of your service model.  Explain to the employer how your service will help them to compliantly answer the questions.  Few employers read the instructions for Form 5500 and have not seen the checklist. It’s a great community service you can provide.  Best of luck and persist with your prospecting activities.

July 18th, 2017



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