4136 / What are covered service providers?

A covered service provider is a service provider that enters into a contract or arrangement with a covered plan, and reasonably expects to receive $1,000 or more from the plan in either direct or indirect compensation for covered services.

For the purposes of the 408(b)(2) regulations, covered services include fiduciary services provided to the plan, fiduciary services provided to the investments held by the plan, services of registered investment advisors (“RIAs”), accounting, certain third party administrative services, record keeping services, brokerage services, and basically any service for which the service provider receives indirect compensation from a plan.¹