Small 401(k) Plans Cost More Than Large 401(k) Plans…

…and it’s preposterous! 

Plans with fewer assets are charged more for managing/administering a 401(k) than plans with more assets, according to data from the 401k Averages Book 19th Edition. And, that is not the only driver for cost disparity. Even plans with similar account balances may be charged differently.

401(k) Fees Eat Your Retirement; Here’s What You Can Do About It

Did you know that almost 40% of 401(k) participants believe they don’t pay fees; about 20% didn’t even know there were fees associated with their 401(k); and, about 15% don’t understand how fees are calculated. Yet, nearly every 401(k) provider charges fees. So, how do you determine what fees you are paying, and how much those fees cost you in retirement?

Nondiscriminatory Testing of 401(k) Plans

Nondiscriminatory testing is often performed on behalf of plan sponsors by the record-keeper or a third-party administrator (TPA). However, it is vital that plan sponsors understand the basics of the testing. For example, what types of contributions are tested, how the test is conducted and what happens when a plan fails.

Sinking in 401(k) Fees? Here’s What You Can Do

Most surveys that poll 401(k) participants have “no idea” if their investments are “good, bad, or ugly.” And, when you are planning for retirement, you want to know that the funds you are investing are generating wealth and not just sucking money out of your account due to hidden or overpriced fees.

Investing in Your 20s

Even though it may seem far off, your 20s are a crucial time for investing. Whether you’re debating the right level of risk for your goals, weighing paying debts or investing, or choosing the best retirement account, making the right decisions now will help you build a strong financial foundation for the future.