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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Multiple Employer Plans | Thought Leadership | Fiduciary Responsibility

The SECURE Act of 2019 – An Analysis of Key 401(k) Changes

By: Eric Droblyen
January 8th, 2020

On December 20, 2019, the President signed the Further Consolidated Appropriations Act, 2020 into law. This year-end spending package included the most extensive retirement plan legislation in over a decade - the Setting Every Community Up for Retirement Enhancement (SECURE) Act. After the SECURE Act was passed by the House, I judged the bill a mixed bag of good, bad, and ugly – the good representing welcome reform, the bad representing undue complexity, and the ugly representing handouts to the financial industry. That view has not changed now that the bill is law.

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Employee Enrollment | Thought Leadership

The DOL Proposes New Electronic 401(k) Disclosure Rules

By: Eric Droblyen
November 13th, 2019

On October 22, 2019, the Department of Labor (DOL) proposed new regulations that would supplement the agency’s current rules for the electronic distribution of 401(k) disclosure notices to plan participants. Specifically, the proposal would add a new “notice and access” rule that permits employers to post notices to a website when certain requirements are met. This common-sense 401(k) plan reform is long overdue.

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Investments | Thought Leadership | Fiduciary Responsibility

The SPIVA Scorecard – A Must-Read for 401(k) Fiduciaries

By: Eric Droblyen
July 10th, 2019

There is no better scorekeeper in the active vs. passive fund debate than the SPIVA Scorecard. Published by S&P Dow Jones Indices, the semi-annual report measures the percentage of actively-managed funds that outperform their market index benchmark over specific periods of time, net of fees. I consider the SPIVA Scorecard a must-read for 401(k) fiduciaries.

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Thought Leadership

The SECURE Act and RESA - the Good, the Bad, and the Ugly

By: Eric Droblyen
May 29th, 2019

According to the Government Accountability Office (GAO), about half of private sector workers in the United States are not covered by a workplace retirement plan. That’s a problem when you consider workers are 15 times more likely to save for retirement when a plan is in place. To expand coverage, Congress is considering ways to encourage plan sponsorship by employers. Two bills under current consideration are the Setting Every Community Up for Retirement Enhancement (SECURE) Act and Retirement Enhancement and Savings Act (RESA). They have similar 401(k)-related provisions. I have mixed feelings about them.

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Blog Feature

401(k) Fees | Thought Leadership | Fiduciary Responsibility

Apathy is the #1 Source of 401(k) Liability – It’s Easy to Avoid

By: Eric Droblyen
October 17th, 2018

In a May 2018 survey by The Pew Charitable Trusts, only 19% of small to midsize employers claimed to be “very familiar” with the expenses paid by their 401(k) plan, while 34% were “not at all familiar.” The remaining 47% said they were only “somewhat familiar.” These results are surprising when you consider employers have a fiduciary responsibility to pay only “reasonable” fees from 401(k) plan assets - and can be personally liable for restoring any excessive fees paid by participants.

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Multiple Employer Plans | Thought Leadership | Fiduciary Responsibility

TSP-like 401(k)s + Tax Credits = More Small Business Plans

By: Eric Droblyen
October 3rd, 2018

According to AARP, Americans are 15 times more likely to save for retirement when they can do so by payroll deduction through a 401(k) or other workplace retirement plan. However, while most large businesses – companies with more than 100 employees – sponsor a retirement plan, 51 to 71 percent of small businesses don’t. In recent years, Multiple Employers Plans (MEPs) have been floated as a way to close this small business coverage gap. I disagree for a simple reason - MEPs fail to address the specific reasons why small businesses don’t offer a retirement plan today. I think single-employer 401(k) plans modeled after the Federal Thrift Savings Plan (TSP) paired with tax credits would do a better job.

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