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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Revenue Sharing | 401(k) Fees | Provider Shopping

Clarity in a Complex World? A 408b-2 Review

By: Eric Droblyen
July 1st, 2015

I look at a lot of 401k service provider fee (408b-2) disclosures.  At least 2 per week. Some are excellent and straight forward, while others are as clear as mud.  This is a problem for 401k fiduciaries.  It’s their responsibility to ensure their 401k plan only pays reasonable plan expenses.  When 408b-2 disclosures are unclear, satisfying this responsibility becomes more difficult.

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Revenue Sharing | 401(k) Fees | Fiduciary Responsibility

New Year’s Resolution # 1 for Fiduciaries – “I WILL Evaluate My 401k Plan Fees"

By: Eric Droblyen
December 30th, 2014

I have always liked New Year's resolutions. They are a great excuse for ending bad behaviors or starting good ones. Here’s one for all small business 401k sponsors – “I will evaluate my plan fees for reasonableness.” Let me explain why…

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401(k) Plan Design Checklist

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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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Revenue Sharing | Investments | Fiduciary Responsibility

Edison International case highlights a needed reform: Share class restrictions in 401k plans.

By: Greg Carpenter
October 22nd, 2014

The Edison International case involves a plan sponsor who put “retail” class shares in its company 401k plan when identically managed but lower cost “institutional shares" were available. The difference in the two share classes was a 12(b)1 fee markup that was deducted from participant assets and used to pay administrative costs of the plan. The Supreme Court will be hearing the case and will likely weigh in on how and when plan participants are allowed to sue plan sponsors.

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Revenue Sharing | Investments | 401(k) Fees

Revenue sharing is on the decline in 401(k) plans. Three reasons why it will soon be gone altogether.

By: Greg Carpenter
July 16th, 2014

I write to bury revenue sharing, not to bash it.

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Revenue Sharing | 401(k) Fees | 401(k) Studies

Employee Fiduciary Announces Free 401k Fee Comparison Service

By: Greg Carpenter
June 5th, 2014

Service intended to help small businesses take current DOL fee disclosure regulations a step further.

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Revenue Sharing | 401(k) Fees | Thought Leadership

Indirect compensation in small business retirement plans made a lot of sense in 1980. So did leisure suits. It’s time to move on.

By: Greg Carpenter
June 5th, 2014

Ted Benna invented the 401k plan in 1980. Today we think of it as a technological stone age, but back then we celebrated the wondrous improvements technology was bringing to financial markets. Charles Schwab had opened a “discount brokerage” in 1975 after deregulation. It now only cost a few hundred dollars to make a stock trade. The “no-load” mutual fund was gaining market share. A young upstart John Bogle at Vanguard was putting pressure on the mutual fund industry. Loads fell to “only” 4.5%. Mainframe computers (with front doors) were communicating with each other over phone lines, thus allowing for 24-hour stock quotes and automated trading.

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