Named Fiduciary

Written By
Paul Tracy
Updated June 26, 2021

What is a Named Fiduciary?

A named fiduciary is a person or entity responsible for managing a qualified retirement plan in accordance with the Employee Retirement Income Security Act (ERISA).

How Does a Named Fiduciary Work?

For example, let's say Company XYZ gets a 401(k) plan. The employees and the company contribute to the plan, which soon has $3 million of assets. A named fiduciary, which works for the 401(k) administrator, is responsible for ensuring that the assets are invested according to the employees' wishes and that Company XYZ is matching the employee contributions as promised. The named fiduciary is not responsible for making Company XYZ happy; it is responsible for making the 401(k) plan participants happy.

Why Does a Named Fiduciary Matter?

Fiduciary duty is one of the most revered and powerful aspects of the financial world. Fiduciary duty requires a person to act in the best interest of his or her clients, and when a named fiduciary does not do so, the consequences can involve civil or even criminal penalties.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Named Fiduciary.
Be the first to ask a question

If you have a question about Named Fiduciary, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Named Fiduciary, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Named Fiduciary

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms