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7 Signs It’s Time to Review The 401(k) Plan Your Company Offers

By September 24, 2025May 6th, 2026Insights

7 Signs It’s Time to Review The 401(k) Plan Your Company Offers

As the owner, CEO or manager of your business, a lot of decisions come across your desk. Perhaps one of the more important decisions is the specifics regarding the 401(k) plan you offer to your employees.

Unfortunately, too many business owners and CEOs tend to spend all their time on first creating the 401(k) plan. Then they ignore it for years. Well, while that 401(k) plan grows stagnant, the markets continue to evolve. Markets shift. Regulations change. Even your workforce changes. Therefore, a periodic 401(k) plan review helps you to stay aligned with your plan’s purpose and your employees’ goals.

After all, plan sponsors often review payroll, insurance, and other benefits every year. At Black Diamond Advisory Partners, we believe that your retirement plans deserve the same attention because small issues can quietly snowball into bigger problems over time. Think of it this way: the 401(k) plan you offer is more than a benefit. It’s a long-term promise you make to your team that their retirement savings will be handled with care.

Here's A 401(k) Plan Health Check That Takes Just Minutes

1

Sign #1: Low Participation
If you’re experiencing flat or declining participation, it can point to several potential problems. Perhaps your 401(k) plan is confusing. Maybe the deferral default is too low. Or perhaps you’re not educating your employees on the benefits of enrolling.
2

Sign #2: Contribution Rates Are Not Keeping Pace with Pay Growth
If your employees are seeing cost of living increases or pay raises each year, their contribution rates should coincide. If not, your employees’ retirement readiness is taking a big hit.
3

Sign #3: Lack of Investment Change
Have you reviewed your investment lineup in the past 12 to 18 months? An investment offering that once made sense may now be misaligned as markets, sectors, and fees change.
4

Sign #4: A Web of Confusing Fees
If 401(k) plan participation is down in your company, it may point to employee hesitation regarding fees. Through meetings, emails, or documentation, make it a priority to clear up any confusion about fees.
5

Sign #5: Recent Workforce Changes
Have you brought on a lot of new people? Have you introduced new offices? Hiring surges, layoffs, mergers and acquisitions, or a shift in demographics can change how your plan should be structured.
6

Sign #6: Your Plan Has Recurring Operational Friction
Is there a process gap within your plan? Look for signs, such as late deposits, errors in eligibility, or confusing notices.
7

Sign #7: Accountability Confusion
Are you not 100% clear who in your company is responsible for what? A healthy plan has clear roles across the sponsor, recordkeeper, advisor, and any investment fiduciary.

Ready for Change? Here’s What to Review First.

Start with your plan goals. Ask yourself “What is the plan designed to accomplish for your workforce today?”

Next, consider the overall plan design. Think about your employees. Then craft the best structure, automatic enrollment, escalation, and eligibility rules.

Think about the investment oversight. Figure out precisely how the 401(k) investment lineup is selected, monitored, and adjusted.

Naturally, participant outcomes matter. Consider the amount of participation you have, the deferral dates, and any retirement readiness indicators.

Consider fee benchmarking. Make sure all your ducks are in a row when it comes to recordkeeping, investment expenses, and any advisor compensation.

Governance and documentation is key. Plan for meetings and distribution of paperwork, as well as the fiduciary process.

Yes, it’s a lot. At Black Diamond Advisory Partners, we’ve implemented and managed many 401(k) plans. Connect with our team if you need any assistance.

How We Support Corporate Retirement Plans

Black Diamond Advisory Partners brings an adaptive approach to retirement plan asset management. Rather than leaving plan investments to drift with the market, we focus on ongoing oversight that responds to market conditions while staying anchored to the plan’s purpose.

For 401(k) plans, profit sharing plans, and defined benefit plans, our work is centered on clarity, steady monitoring, and disciplined adjustments that keep the plan aligned through change.

Still Unclear How to Improve Your 401(k) Plan’s Health? Let Our Clarity Guide You.

If you want a plan that stays aligned through changing markets and changing goals, we can help. Explore the services below or reach out to start a conversation.

Disclosure: This material is for informational purposes only and is not individualized investment, tax, or legal advice. Investing involves risk, including possible loss of principal. 

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