Working with 401(k) plans as a benefits broker may seem like the holy grail of benefits work, but financial advisors and agents should first figure out why they want to do it and what value they can offer to plan sponsors before they begin prospecting.

Finding a niche is important, but benefits brokers also must understand that it is not an easy business to get into and that landing a 401(k) plan as a client isn't the hardest part.

Many financial advisors and agents want to get involved in 401(k)s because of the money and the opportunities that kind of work affords on the side, like personal wealth management clients. But, working with plan sponsors is "very time consuming," said James Holland, assistant compliance officer and director of business development for Millennium Investment and Retirement Advisors, LLC in Charlotte, N.C.  "It might lead to individual business, but helping a plan sponsor run an ERISA-compliant plan is time consuming. There are a lot of things that have to be done for plan sponsors because they are not familiar with or are not qualified to do so."