For Plan Sponsors · Owners · HR Leaders
You are personally liable for your company's 401(k).We can change that.
Under ERISA, owners and HR decision-makers are personally on the hook for imprudent plan decisions. As your 3(21) Adviser, we arrange for an independent third-party 3(38) Investment Manager — through the RFM 401(k) Maneuver PEP — to accept that discretionary fiduciary responsibility in writing, lifting it off you and your company.
The plan sponsor's dilemma
Most owners don't realize how much liability they've quietly taken on.
The U.S. Department of Labor's Employee Benefits Security Administration recovered more than $1.4 billion for employee benefit plans, participants, and beneficiaries in fiscal year 2025.[1] Litigation against small-plan sponsors is rising sharply, and "we just used the recordkeeper's default lineup" is not a defense.
01
Personal exposure
ERISA §409 makes fiduciaries personally liable for participant losses caused by imprudent decisions.
02
Hidden fees
Small plans (~$5M in assets) average 1.04% in total plan costs vs. 0.72% for $50M plans[2] — the gap compounds to hundreds of thousands over a decade.
03
No time to monitor
Prudent process requires ongoing investment review, benchmarking, and documentation.
Hover any [n] to preview the source, or view the full list of citations.
The 3(38) difference
A 3(21) Adviser gives advice. A 3(38) Investment Manager takes discretion.
Under ERISA §3(38), a discretionary investment manager assumes the fiduciary duty for selecting, monitoring, and replacing plan investments. We serve as your 3(21) Adviser and engage an independent third-party 3(38) Investment Manager through the RFM 401(k) Maneuver PEP; the liability for those investment decisions transfers to that 3(38) Investment Manager — in writing.
- 3(21) Adviser
- Recommends investments. You approve them and remain on the hook.
- 3(38) Investment Manager
- An independent third party (engaged via the RFM 401(k) Maneuver PEP) selects, monitors, and replaces the lineup and assumes fiduciary responsibility for those decisions.
- You retain
- The prudent responsibility to hire and monitor the 3(38) — a much narrower duty.
The engagement
A structured, disruption-free transition.
Keep your existing recordkeeper. We slot in as your 3(21) Adviser and engage an independent third-party 3(38) Investment Manager via the RFM 401(k) Maneuver PEP. Most plans transition in under 60 days with no participant impact beyond an upgrade in oversight.
01
Plan review
We benchmark your current fees, investment lineup, and fiduciary process — at no cost.
02
Written appointment
Sign the engagement. An independent third-party 3(38) Investment Manager (via the RFM 401(k) Maneuver PEP) accepts fiduciary liability for investment decisions in writing.
03
Optimize the lineup
Institutional share classes, prudent diversification, documented monitoring.
04
Ongoing stewardship
Quarterly reviews, annual plan-sponsor reports, and professional account management for employees.
Best Practices for Reducing Employer Liability Within 401(k) Plans
A 7-page guide for owners, CFOs, and HR leaders. The practices that provide the best protections against fiduciary liability in ERISA retirement plans.
Ready to see how much liability we can lift?
Twenty minutes with a fiduciary advisor. No obligation, no product pitch — just a candid look at your current plan and where the exposure sits.