Based on unique circumstances stemming from how they developed, 401(k) plans [2] have historically been immune from comprehensive fee evaluations. However, plan sponsors have a fiduciary [3] responsibility to control costs paid by 401(k) plan [4] participants. The article discusses recent initiatives directed at reducing the 401(k) cost burden, including Department of Labor [5] initiatives and strategies adopted by large corporate entities. Other topics addressed include 401(k) cost components (and their relative importance) and benchmarking techniques for ensuring that the fees you pay are reasonable relative to industry standards.
Download Managing Your 401k Plan Fees [6].
This article originally appeared in the October 1999 issue of Employee Benefit Plan Review.