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Small Business 401(k) Blog

The Frugal Fiduciary Small Business 401(k) Blog

Get the latest industry news, deadlines and tips you need to know to help tackle your fiduciary responsibility needs.

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Retirement Plan Types | Plan Design

Are Profit Sharing Contributions Right for Your 401(k) Plan?

By: Eric Droblyen
January 10th, 2018

Bar none, profit sharing contributions are the most flexible type of employer contribution a company can make to their 401(k) plan.  These contributions are not only discretionary, but they can be made to any eligible plan participant – even if the participant fails to make 401(k) deferrals themselves.  They can also be allocated using dramatically different formulas – allowing employers to meet a broad range of 401(k) plan goals with them. 

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small business retirement plans | low cost 401(k) plan | Roth 401(k) | Financial Advice

The Top Ten Frugal Fiduciary 401(k) Blogs of 2017

By: Eric Droblyen
December 27th, 2017

Happy Holidays from the Frugal Fiduciary! As 2017 comes to a close, we looked back through this year’s blogs to find the most read.

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401(k) Plan Design Checklist

Feeling overwhelmed?

Subscribe to the The Frugal Financial Small Business 401(k) Blog and receive this free checklist for help in determing the best 401(k) plan design options and fit for your company.

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low cost 401(k) plan | 401(k) Fees | Multiple Employer Plans

Why Multiple Employer 401(k) Plans are Obsolete Today

By: Eric Droblyen
December 13th, 2017

A couple of weeks back, I found a Multiple-Employer 401(k) Plan (MEP) marketing piece by State Street Global Advisors (SSGA) that copied (without attribution) a 401(k) plan fiduciary hierarchy I had created for a blog. The piece claimed employers could fully outsource their plan’s hierarchy – and any personal liability for failing to meet its fiduciary responsibilities – to a MEP 401(k) provider. The problem? While outsourcing the 401(k) hierarchy is possible, outsourcing its liability is not.

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Investment costs | 401k fee disclosure | 401(k) Fees

Worried Your 401(k) Pays Hidden Fees? Answer 2 Questions to Find Out

By: Eric Droblyen
November 29th, 2017

Employers that sponsor a 401(k) plan have a fiduciary responsibility to pay only reasonable fees from plan assets. Keeping 401(k) fees in check is one of the most important 401(k) fiduciary responsibilities because excessive fees reduce investment returns unnecessarily, making a secure retirement for plan participants less affordable. Not meeting this responsibility can also mean severe consequences for the employer – including personal liability.

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Retirement Planning

401(k) Required Minimum Distributions – What You Need to Know

By: Eric Droblyen
November 15th, 2017

We’re fast approaching the end of another calendar year, and for many older Americans, that means it’s time to take a Required Minimum Distribution (RMD) from their 401(k) account. If you participate in a 401(k) plan, you want to understand the RMD rules. Failing to take a RMD can mean stiff tax penalties from the IRS. Understanding the RMD rules can also help you avoid required distributions altogether.

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index funds | Investments | Financial Advice

3-Step Guide for Employers to Select and Monitor 401(k) Index Funds

By: Eric Droblyen
November 1st, 2017

Index funds not only offer 401(k) participants superior returns to comparable actively-managed funds net of fees, they are a clear and simple way for 401(k) sponsors to meet their investment-related fiduciary responsibilities.  Sponsors need only select three or more prudent investments that allow plan participants to sufficiently diversify their accounts.  Index funds are indisputably “prudent” by meeting their investment objective for market-correlated returns at reasonable fees.

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