Feds: Half of firms don’t know what they’re paying for 401(k)s
When it comes to what their companies are paying in terms of 401(k) fees, most companies appear to be completely in the dark.
That’s a major finding in a recent report by the nonpartisan Government Accountability Office (GAO).
Take investment management fees. Around half of plan sponsors didn’t know they or their employees paid investment management fees (fees paid to managers who pick how 401(k) funds are invested) – or they mistakenly thought those fees were waived.
Why is this so important? Investment management fees account for the majority of overall 401(k) fees.
One of the major reasons why employers are unclear about the details of their fees: Most fail to ask their providers about these things.
The report found that 70% of plan sponsors had never asked whether their plan was charged 12b-1 fees, the charges that range from brokers selling funds to advertising and promotion costs. Another 82% didn’t ask about recordkeeping fees – charges for services like maintaining employees’ accounts.
To view the complete GAO report, click.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
White Papers
Provided by Anaplan
White Papers
Provided by Personify Health
Further Reading
The IRS has explained how to handle taxes if a retirement plan participant doesn’t cash a distribution check and another check is issued....
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
Heads up, Finance pros: HR might be coming to you soon for input and approval on new OBBBA benefits changes. Much of the media coverage...
There’s no need to panic if you or one of your staffers discover they’ve made mistakes with your company’s 401(k) plan.&nb...
CFOs and benefits professionals can only do so much to influence employees to invest in a company 401(k) plan. So-called influencers are of...
Year after year, surveys show about half of all employees don’t tap their allotted personal time off (PTO). While some companies allo...
