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.

Blog Feature

401(k) Fees | Provider Shopping | Fiduciary Responsibility

How to Total Paychex 401(k) Fees Using Their 408b-2 Disclosure

By: Eric Droblyen
September 5th, 2018

Too many 401(k) providers make it harder than necessary for employers to total and evaluate their 401(k) plan fees for ”reasonableness” – an important fiduciary responsibility - by not charging simple fees. One of these 401(k) providers is the payroll company ADP. Two weeks ago, I described my process for totaling ADP’s 401(k) fees using their DOL-mandated 408b-2 fee disclosure. Now, I’d like to do the same thing for Paychex - ADP’s largest payroll competitor. 

Read More

Share

Blog Feature

401(k) Fees | Provider Shopping | Fiduciary Responsibility

Calculating ADP 401(k) Fees Using Their 408b-2 Disclosure

By: Eric Droblyen
August 22nd, 2018

One of the largest small business 401(k) providers in the country is the payroll company ADP. Due to my firm’s fee comparison service, I get the opportunity to evaluate ADP’s 401(k) fees regularly. As a result, I’ve become very familiar with their DOL-mandated 408b-2 disclosure – which describes the company’s services and fees. While its generally clearer than insurance company 408b-2 disclosures, it can hardly be called intuitive.

Read More

Share

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.

Blog Feature

401(k) Fees | Provider Shopping | Thought Leadership | Fiduciary Responsibility

Guidelines for Benchmarking 401k Admin and Investment Fees

By: Eric Droblyen
August 8th, 2018

In a recent study, we found 79% of our small business clients pay 100% of their 401(k) administration fees from a corporate bank account – not plan assets. This approach is popular because it can mutually benefit plan sponsors and participants. While the plan sponsor can deduct these fees as a business expense, plan participants can keep their amount invested – where they can grow until retirement.

Read More

Share

Blog Feature

401(k) Fees | Provider Shopping | Fiduciary Responsibility

401(k) Fee Levelization – It Can Make Revenue Sharing Worse!

By: Eric Droblyen
July 11th, 2018

The use of revenue sharing by 401(k) plans has declined sharply over the past five years. That means more 401(k) plans are paying “direct” fees – which are deducted from participant accounts – to their 401(k) provider instead. That’s good news because direct fees are more transparent and fair than revenue sharing payments – making it easier for 401(k) plan sponsors to keep their 401(k) fees in check.

Read More

Share

Blog Feature

401(k) Fees | Provider Shopping

Four 401(k) Plan Services That Justify Higher Provider Fees

By: Eric Droblyen
May 30th, 2018

I meet a lot of 401(k) plan sponsors unsure they’re paying “reasonable” fees to their 401(k) provider for ”necessary” services – an important 401(k) fiduciary responsibility. I can hardly blame them when I consider the broad range of fees charged by 401(k) providers today.

Read More

Share

Blog Feature

401(k) Fees

Unpacking the Complex Web of Insurance Company 401k Fees

By: Eric Droblyen
March 21st, 2018

In a small business 401(k) fee study, we found that 7 of the top 10 most expensive 401(k) providers were insurance companies.  I can’t say I was too surprised by this finding due to the complex web of 401(k) fees charged by these companies – which can include hidden 401(k) fees that other 401(k) providers can’t charge legally and additional fees for unrelated service partners. So how do insurance companies with high 401(k) fees get away with it?  

Read More

Share