"There are three key questions employers should ask about their 401k plan fees. First, what is your total plan cost? Second, how are those costs allocated? Third, are they reasonable?" said
First, he recommends employers ask their providers to supply a single number that shows the total plan's cost. The 401k Averages Book, which publishes a variety of fee benchmarks, found the average total plan cost for a small retirement plan with 100 participants and
Next, an employer should research how the total plan costs are allocated to their service providers. "A 401k plan has many working parts and there are fees associated with each service. New fee disclosure regulations have made it easier to learn what fees are paid and who receives them," said
Last, employers need to determine if their 401(k) fees are fair and reasonable. "The first step in determining reasonableness is to know what your fees are. Once you have identified your fees and compared them to a benchmark you can build in the service platform and efficiency to determine the value equation or reasonableness," said Huntley.
Keywords for this news article include: 401k Averages Book, Finance and Investment.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC
Most Popular Stories
- Cape Cod Building Mussel Industry
- Hollywood Eager to Grasp Hispanic Market
- Frightfully Fun Films Return for Halloween
- Would Soccer Be Richer Without Small Clubs?
- Cloud Lifts Microsoft's Quarterly Results
- Sears Denies Store Closings, Layoffs Report
- Weekly Jobless Claims Rise but Remain Low
- IS Funded by Black Market Oil Sales, Racketeering
- Pfizer Approves $11 Billion Buyback Plan
- Teresa Giudice Must Serve Time in Prison