Small Business 401(k) Blog

The Frugal Fiduciary Small Business 401(k) Blog

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Blog Feature

401(k) Fees | Retirement Planning | Thought Leadership

Employee Fiduciary Launches New 401k Fee Savings Calculator

By: Eric Droblyen
October 13th, 2021

Due to the power of compound interest, 401(k) participants can add hundreds of thousands of dollars to their savings – or retire years sooner - by keeping their account fees as low as possible throughout their working years. And yet, in my experience, few participants appreciate this indisputable truth. Employee Fiduciary would like to help change that. This month, we launched an online calculator to show users how much they can add to their future savings by lowering their 401(k) fees today. Our bet - most users will be shocked by the amount they find.

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401(k) Fees | Thought Leadership

Proposed 5500 Reform Won’t Help 401(k) Fee Benchmarking

By: Eric Droblyen
September 29th, 2021

This month, the Department of Labor (DOL), IRS and Pension Benefit Guaranty Corp (PBGC) proposed changes to the Form 5500 – a report most 401(k) plans must file annually to meet ERISA requirements. Two changes would require large Form 5500 filers to report more 401(k) fee information. I think more fee reporting is necessary.

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Blog Feature

401(k) Fees | Thought Leadership

GAO Recommends Much Needed 401(k) Fee Disclosure Reform

By: Eric Droblyen
September 15th, 2021

The U.S. Government Accountability Office (GAO) is federal agency that, according to its website, “provides Congress and federal agencies with objective, non-partisan, fact-based information to help the government save money and work more efficiently.” In an August report, the GAO assessed the effectiveness of the Department of Labor’s (DOL) 401(k) fee disclosure rules. They found that nearly 40% of 401(k) plan participants do not understand the fee information mandated by the DOL. This much confusion is a big problem when you consider the cumulative effect of 401(k) fees over time. To manage these losses, participants need a clear understanding of their 401(k) fees.

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Thought Leadership

Could the FTC Save Consumers from Hidden 401(k) Fees?

By: Eric Droblyen
September 1st, 2021

I recently read an interesting article in the New York Times titled Stop the Hidden-Fee Rip-Off. In the article, a lawyer for the Institute for Policy Integrity calls on the Federal Trade Commission (FTC) – a government agency charged with protecting consumers from deceptive, unfair and anticompetitive trade practices – to ban “hidden fees in all industries.” I could not agree more. Hidden fees make it harder than necessary for consumers to make informed buying decisions. I think the FTC should start with hidden 401(k) fees given their impact on retirement’s affordability.

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Thought Leadership

The New Employee Fiduciary 401(k) Knowledge Center Is Here!

By: Eric Droblyen
August 18th, 2021

At Employee Fiduciary, we know a cost-efficient 401(k) plan with the right features can dramatically reduce the out-of-pocket cost of retirement for participants. For that reason, we’re passionate about delivering 401(k) education that makes it easier for employers to offer such plans and their employees to take full advantage of them. To that end, we’re proud to announce the release of our new knowledge center – which includes impartial 401(k) education for both employers and retirement savers.

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Blog Feature

Plan Design | Thought Leadership | Fiduciary Responsibility

How to Simplify Your 401k Admin with a Cycle 3 Plan Restatement

By: Eric Droblyen
July 21st, 2021

As a business owner, you must operate your 401(k) plan according to the terms of a written plan document. Most plans use an IRS preapproved document for this purpose. All preapproved documents must be fully rewritten (or restated) every six years to reflect recent law changes. The last 6-year restatement cycle was called “PPA” after the Pension Protection Act. A new cycle - called "Cycle 3" - opened last year. Between August 1, 2020 and July 31, 2022, all pre-approved 401(k) plans must be restated from a PPA to a Cycle 3 plan document. That means now.

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