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The Business of Savings
How to compare 401(k) providers if you might switch
You have a 401(k) plan for your business which is great. But how do you know you are receiving great value? Most 401(k) providers don’t adjust your pricing lower even though your plan is likely more valuable to them as it has grown and industry pricing continues to creep lower.
Common questions include:
- Is my company paying too much for our 401(k)?
- How do I minimize business risks associated with offering a 401(k) plan?
- Do we receive the employee guidance and education services that best support our needs?
When you compare costs, there are recordkeeping and administrative costs your business likely covers. Then there are participant fees where a lot of costs can be buried and that can hurt how much you and your employees have come retirement. With fee transparency legislation expected to come into play in the coming year, business owners and plan sponsors will likely soon have a much better idea of how much these fees really are sometime this year. Don’t be surprised if it’s more than you might have expected. It can be noticeably higher for small and mid-size businesses.
Now is a great time to receive a 401(k) plan check-up. Not only will you learn what sorts of opportunities exist with your plan, but it’s also a great way to stay in line with the Department of Labor best practice of a regular plan cost review.
We’re always happy to run a cost analysis and business risk assessment of your plan and detail the pros and cons of your plan so you can make the best decision for your business.