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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.
SECURE 2.0’s Automatic Enrollment Mandate for 401(k)s – What Employers Need to Know

SECURE 2.0’s Automatic Enrollment Mandate for 401(k)s – What Employers Need to Know

By: Eric Droblyen

March 26th 2024

SECURE 2.0 requires new 401(k) plans to implement an automatic enrollment feature in 2025 unless an exception applies. Here's what employers need to know.
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How Starter 401(k) Plans Compare to Safe Harbor and Traditional Plans

How Starter 401(k) Plans Compare to Safe Harbor and Traditional Plans

By: Eric Droblyen

March 12th 2024

Employers with no 401(k) plan can now adopt a starter plan. Small business owners should understand how they compare to traditional and safe harbor plans.
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A Simple Guide for Meeting 401(k) Fiduciary Responsibilities

A Simple Guide for Meeting 401(k) Fiduciary Responsibilities

By: Eric Droblyen

February 27th 2024

Meeting 401(k) fiduciary responsibilities does not need to be scary or time-consuming for small business plan sponsors. Following some simple guidance is the key.
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Roth Matching and Nonelective Contributions – What Employers Need to Know

Roth Matching and Nonelective Contributions – What Employers Need to Know

By: Eric Droblyen

February 13th 2024

Roth matching and nonelective contributions will be available to 401(k) plans soon. Here’s what employers need to know to decide if they are right for their plan.
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Deadlines for 401(k) Adoption – Including SECURE 2.0 Changes

Deadlines for 401(k) Adoption – Including SECURE 2.0 Changes

By: Eric Droblyen

January 31st 2024

The SECURE Act made it easier for businesses to adopt a new 401(k) plan or add a safe harbor feature to an existing plan by extending the deadlines to do so.
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How to Replace a SIMPLE IRA with a 401(k) - SECURE 2.0 Update

How to Replace a SIMPLE IRA with a 401(k) - SECURE 2.0 Update

By: Eric Droblyen

January 16th 2024

SECURE 2.0 allows employers to terminate a SIMPLE IRA mid-year by replacing the plan with a safe harbor 401(k) plan. Our checklist can make the job easy.
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The Top Ten Frugal Fiduciary 401(k) Blogs of 2023

The Top Ten Frugal Fiduciary 401(k) Blogs of 2023

By: Eric Droblyen

January 2nd 2024

Our top 10 blogs for 2023 are must-reads for small business 401(k) sponsors and participants. They cover plan contributions, law changes, and plan establishment.
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How Much a Low Cost 401(k) Can Increase Your Future Savings

How Much a Low Cost 401(k) Can Increase Your Future Savings

By: Eric Droblyen

December 19th 2023

The cumulative effect of 401(k) fees can cost a saver hundreds of thousands in retirement. Here’s what workers need to know to lower their fees today.
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401(k) Long-Term, Part Time Rules – What Employers Need to Know

401(k) Long-Term, Part Time Rules – What Employers Need to Know

By: Eric Droblyen

December 5th 2023

The SECURE Act’s long-term, part-time rules for 401(k) plans are complicated. Plan design changes can help employers with part-time employees avoid them.
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401(k) Annual Administration - A Checklist for Business Owners

401(k) Annual Administration - A Checklist for Business Owners

By: Eric Droblyen

November 21st 2023

An important 401(k) fiduciary responsibility is ensuring plan administration tasks are completed timely each year. Our checklist makes this job easy.
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Mega Backdoor Roth – A Perfect Fit for Solo 401(k) Plans

Mega Backdoor Roth – A Perfect Fit for Solo 401(k) Plans

By: Eric Droblyen

November 7th 2023

Mega backdoor Roth contributions allow high-income individuals to grow tax-free retirement savings quickly. A solo 401(k) plan is a perfect fit for the strategy.
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Is Your Company Part of an Affiliated Service Group? Know for Certain or Risk 401(k) Plan Disqualification

Is Your Company Part of an Affiliated Service Group? Know for Certain or Risk 401(k) Plan Disqualification

By: Eric Droblyen

October 24th 2023

Determining whether your company is part of an affiliated service group is complex, but necessary to avoid plan errors which can result in plan disqualification.
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The 402(g) Limit For 401(k) Plans – FAQs for Employers

The 402(g) Limit For 401(k) Plans – FAQs for Employers

By: Eric Droblyen

October 10th 2023

The 402(g) limit may be the most straightforward 401(k) contribution limit, but it can get complicated fast when an individual contributes to multiple plans in a year.
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403(b) or 401(k): Which is Best for a Tax-Exempt Organization?

403(b) or 401(k): Which is Best for a Tax-Exempt Organization?

By: Eric Droblyen

September 26th 2023

Tax exempts can help their employees save for retirement with a 403(b) or 401(k) plan. Understanding how these plans compare can make the best choice easy.
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4 Questions to Achieve the Ideal 401(k) Plan

4 Questions to Achieve the Ideal 401(k) Plan

By: Eric Droblyen

September 12th 2023

An ideal 401(k) plan helps employees and employers meet their goals at a low cost. Ask your plan provider four questions to achieve one for your business.
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DOL Requests 401(k) Fee Disclosure Feedback; We Responded

DOL Requests 401(k) Fee Disclosure Feedback; We Responded

By: Eric Droblyen

August 29th 2023

Participant-directed 401(k) plans must distribute a fee disclosure to participants annually. We suggested content changes to the DOL to improve their effectiveness.
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401(k) Contribution Deductibility - What Employers Need to Know

401(k) Contribution Deductibility - What Employers Need to Know

By: Brian Furgala

August 15th 2023

Understanding the deduction rules for 401(k) plan contributions can significantly reduce your business’s tax liability. These rules boil down to limits and timing.
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SECURE 2.0 Non-Discrimination Testing Changes: Good News for Small Businesses

SECURE 2.0 Non-Discrimination Testing Changes: Good News for Small Businesses

By: Brian Furgala

August 1st 2023

The 401(k) non-discrimination testing changes made by SECURE 2.0 can help a small business increase employee savings and reduce plan costs.
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How to Prepare Your 401(k) Plan for SECURE 2.0 Changes

How to Prepare Your 401(k) Plan for SECURE 2.0 Changes

By: Brian Furgala

July 18th 2023

Not preparing a 401(k) plan for SECURE 2.0 could lead to lower contribution limits, missed tax breaks, or unnecessary administration. Here are changes to consider.
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Replacing a SIMPLE IRA with a 401(k) – Frequently Asked Questions

Replacing a SIMPLE IRA with a 401(k) – Frequently Asked Questions

By: Brian Furgala

July 5th 2023

Replacing a small business SIMPLE IRA with a 401(k) is not a complicated process, but it does require planning. Our FAQ can help the process go smoothly.
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401(k) Investment Selection – Don’t Let ESG Factors Distract You

401(k) Investment Selection – Don’t Let ESG Factors Distract You

By: Brian Furgala

June 20th 2023

Fiduciaries should be focusing on relevant risk-return factors, including investment fees, in evaluating 401(k) investment options and not be distracted by ESG factors.
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401(k) Forfeitures: How and When They Must Be Used

401(k) Forfeitures: How and When They Must Be Used

By: Brian Furgala

June 6th 2023

A forfeiture is the non-vested portion of a 401(k) account when certain events occur. We summarize how and when 401(k) plans must use forfeitures based on IRS rules.
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New 401(k) Audit Rule for Form 5500 is Good News for Small Businesses

New 401(k) Audit Rule for Form 5500 is Good News for Small Businesses

By: Brian Furgala

May 23rd 2023

Recent Form 5500 changes will subject fewer small business 401(k) plans to an independent qualified public accountant audit.
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Roth 401(k) Contributions — Answers to Common Questions

Roth 401(k) Contributions — Answers to Common Questions

By: Brian Furgala

May 9th 2023

Historically, low income tax rates make Roth 401(k) contributions more affordable than ever. This FAQ can help you decide if they are right for you.
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401(k) In-Service Distributions – New SECURE 2.0 Options

401(k) In-Service Distributions – New SECURE 2.0 Options

By: Brian Furgala

April 25th 2023

Discover how SECURE 2.0 expands 401(k) in-service distribution options for emergencies, terminal illness, domestic abuse victims, and long-term care premiums.
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401(k) Eligibility: When to Let Employees Join Your Plan

401(k) Eligibility: When to Let Employees Join Your Plan

By: Eric Droblyen

April 11th 2023

Company goals, employee demographics, and plan features are all factors small businesses should consider when choosing 401(k) eligibility terms.
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401(k) Required Minimum Distributions – What You Need to Know

401(k) Required Minimum Distributions – What You Need to Know

By: Brian Furgala

March 28th 2023

Failing to take required minimum distributions from your 401(k) can result in tax penalties. Understanding the RMD rules can keep you safe.
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Automatic Enrollment – Is It Right for Your Small Business 401(k) Plan?

Automatic Enrollment – Is It Right for Your Small Business 401(k) Plan?

By: Brian Furgala

March 14th 2023

Learn the 3 options of automatic enrollment in a 401(k) plan and decide which is right for your business. Plus, read the latest changes from SECURE 2.0.
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Small Business 401(k) Tax Credits – SECURE 2.0 Updates

Small Business 401(k) Tax Credits – SECURE 2.0 Updates

By: Brian Furgala

February 28th 2023

Discover three small business 401(k) tax credits that can help lower the out-of-pocket cost of starting a small business retirement plan. Plus, read the latest changes due to SECURE 2.0.
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Three Features of a FIRE-Inspired 401(k) Plan

Three Features of a FIRE-Inspired 401(k) Plan

By: Eric Droblyen

February 14th 2023

Financial Independence, Retire Early (FIRE) is a financial movement defined by frugality. A FIRE-inspired 401(k) plan can help any worker retire years sooner.
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SECURE 2.0 – My Top 5 401(k) Related Provisions

SECURE 2.0 – My Top 5 401(k) Related Provisions

By: Eric Droblyen

January 31st 2023

SECURE 2.0 makes sweeping 401(k) plan changes. My top five provisions will grow retirement savings the most. Banning hidden fees would help even more.
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SECURE Act 2.0 – A Summary of the Major 401(k) Provisions

SECURE Act 2.0 – A Summary of the Major 401(k) Provisions

By: Eric Droblyen

January 17th 2023

SECURE 2.0 makes sweeping changes to 401(k) plans. Employers should understand the most significant provisions to prepare their 401(k) plan for them.
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The Top Ten Frugal Fiduciary 401(k) Blogs of 2022

The Top Ten Frugal Fiduciary 401(k) Blogs of 2022

By: Eric Droblyen

January 3rd 2023

Our top 10 blogs for 2022 are must-reads for small business 401(k) sponsors and participants. They cover controlled groups, testing, and plan administration.
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Removing Hidden 401(k) Fees - What Employers Need to Know

Removing Hidden 401(k) Fees - What Employers Need to Know

By: Eric Droblyen

December 21st 2022

Revenue-sharing payments are hidden fees paid to 401(k) providers by some mutual funds. By replacing these funds, employers can increase participant returns.
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401(k) Plan Design Choices to Simplify Annual Admin the Most

401(k) Plan Design Choices to Simplify Annual Admin the Most

By: Eric Droblyen

December 6th 2022

Proper 401(k) plan design can reduce the time employers must spend on annual plan administration by hours. We outline the simplest options to administer.
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How 401(k) Participants Can Match the Federal TSP's Low Fees

How 401(k) Participants Can Match the Federal TSP's Low Fees

By: Eric Droblyen

November 8th 2022

The Federal TSP is the lowest cost defined contribution plan in the US. Employers can help their 401(k) participants pay similar fees by taking two simple steps.
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Pooled 401(k) Plan Fees – A Case Study

Pooled 401(k) Plan Fees – A Case Study

By: Eric Droblyen

October 25th 2022

We compared the 401(k) fees paid by pooled and single-employer plans. The pooled plan costs more due to a higher percentage of asset-based fees.
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The Ideal 401(k) Plan for Employees and Employers

The Ideal 401(k) Plan for Employees and Employers

By: Eric Droblyen

October 11th 2022

The ideal 401(k) plan helps employees and employers meet their respective goals at the lowest cost. To achieve one, employers must understand their features.
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401(k) Contributions - What Workers Need to Know

401(k) Contributions - What Workers Need to Know

By: Eric Droblyen

September 27th 2022

401(k) plans can offer dramatically different employee and employer contribution options. Workers should understand their plan’s options to not miss out.
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The 415(c) Limit For 401(k) Plans – FAQs for Employers

The 415(c) Limit For 401(k) Plans – FAQs for Employers

By: Eric Droblyen

September 13th 2022

The 415(c) limit caps the “annual additions” a 401(k) plan can allocate to participants each “limitation year.” To avoid violations, check out our FAQ.
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The Top 401(k) Priorities on the DOL’s Regulatory Agenda

The Top 401(k) Priorities on the DOL’s Regulatory Agenda

By: Eric Droblyen

August 30th 2022

The DOL's latest regulatory agenda includes 401(k) reform. I recommend 401(k) fiduciaries check it out to learn the DOL's priorities.
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Morningstar's Active/Passive Barometer – Takeaways for 401(k) Fiduciaries

Morningstar's Active/Passive Barometer – Takeaways for 401(k) Fiduciaries

By: Eric Droblyen

August 16th 2022

401(k) fiduciaries can struggle to choose between active or index funds when picking plan investments. The Morningstar Active/Passive Barometer can help.
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Pew Finds Rolling a 401(k) to an IRA can be a Costly Mistake

Pew Finds Rolling a 401(k) to an IRA can be a Costly Mistake

By: Eric Droblyen

August 2nd 2022

A Pew study found investment expenses in IRAs to be higher than 401(k)s and the difference can cost an investor tens of thousands of dollars in retirement.
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Is Your 401(k) About to Lose Solo Status? Here’s How to Prepare

Is Your 401(k) About to Lose Solo Status? Here’s How to Prepare

By: Eric Droblyen

July 19th 2022

Preparing a small business 401(k) plan to lose its solo status is not complicated. Here’s what you need to know to smoothly transition your plan.
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Target Date Index Funds – The Best Investment for Most 401(k) Participants?

Target Date Index Funds – The Best Investment for Most 401(k) Participants?

By: Eric Droblyen

July 5th 2022

Target Date Index Funds may be the best investment for most 401(k) participants. They combine strong net-of-fee returns and set-it-and-forget-it convenience.
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New 401(k) Lifetime Income Disclosures – What to Know

New 401(k) Lifetime Income Disclosures – What to Know

By: Eric Droblyen

June 22nd 2022

The SECURE Act's lifetime income disclosure should help 401(k) participants understand how much income their account balance could produce in retirement.
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401(k) Distributions - FAQs for Employers

401(k) Distributions - FAQs for Employers

By: Eric Droblyen

June 8th 2022

When employers do not follow their 401(k)'s distribution rules, IRS penalties can result. Our distribution guide can help employers avoid these consequences.
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401(k) Plan Design Study: Safe Harbor and Roth Adoption Is Up

401(k) Plan Design Study: Safe Harbor and Roth Adoption Is Up

By: Eric Droblyen

May 25th 2022

Proper 401(k) plan design can help a small business meet its plan goals at the lowest possible cost. Our study summarizes the designs of 4,330 401(k) plans.
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Good Luck Escaping a Pooled Employer 401(k) Plan (PEP)

Good Luck Escaping a Pooled Employer 401(k) Plan (PEP)

By: Eric Droblyen

May 11th 2022

Employers can terminate a single-employer 401(k) at any time, but they can't terminate their portion of a Pooled Employer Plan. That can trap participants.
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SECURE Act 2.0 – Not the 401(k) Reform Americans Deserve

SECURE Act 2.0 – Not the 401(k) Reform Americans Deserve

By: Eric Droblyen

April 27th 2022

SECURE 2.0 delivers welcome, but incremental, reform. 401(k) plans are not cost-efficient enough today. Here are four things Washington can do to change that.
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Don’t Be Fooled by These 401(k) Conflicts of Interest!

Don’t Be Fooled by These 401(k) Conflicts of Interest!

By: Eric Droblyen

April 13th 2022

The 401(k) industry is rife with conflicts of interest. Employers have a fiduciary responsibility to protect employees from them. Common ones hide in plain sight.
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The Ultimate Guide to Safe Harbor 401(k) Plans

The Ultimate Guide to Safe Harbor 401(k) Plans

By: Eric Droblyen

March 30th 2022

Safe harbor 401(k) plans are popular with small businesses that struggle to pass IRS-mandated nondiscrimination testing. Our guide answers common questions.
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Five Reasons Why Hidden 401(k) Fees Should be Illegal

Five Reasons Why Hidden 401(k) Fees Should be Illegal

By: Eric Droblyen

March 16th 2022

Hidden 401(k) fees should be illegal. They can make it almost impossible for employers to protect the interests of plan participants and avoid fiduciary liability.
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401(k) Fiduciary Takeaways from a Jerry Schlichter Interview

401(k) Fiduciary Takeaways from a Jerry Schlichter Interview

By: Eric Droblyen

March 2nd 2022

Understanding the drivers of 401(k) fiduciary liability can help employers avoid it. The top drivers are well defined in a recent interview with Jerry Schlichter.
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Pooled Employer 401(k) Plans (PEPs): Myth vs. Reality

Pooled Employer 401(k) Plans (PEPs): Myth vs. Reality

By: Eric Droblyen

February 16th 2022

Pooled Employer Plans (PEPs) can seem attractive at first blush. Ironically, their purported benefits can, in fact, harm 401(k) plan participants and fiduciaries.
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Hughes v Northwestern: What is a

Hughes v Northwestern: What is a "Prudent" 401(k) Investment?

By: Eric Droblyen

February 2nd 2022

When the Supreme Court re-opened the Hughes v. Northwestern University case, they didn't offer plan fiduciaries a "prudent" 401(k) investment definition. We do.
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401(k) Nondiscrimination Testing Study – What % of Plans Fail?

401(k) Nondiscrimination Testing Study – What % of Plans Fail?

By: Eric Droblyen

January 19th 2022

Our 401(k) nondiscrimination testing study shows the percentage of small business plans that fail the ADP/ACP, top-heavy, 402(g), and 415 tests.
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How to Make Small Business 401(k)s Cheaper than Mega Plans

How to Make Small Business 401(k)s Cheaper than Mega Plans

By: Eric Droblyen

January 5th 2022

Small 401(k) plans are notorious for high fees. Here's how business owners can benefit by making their small plan cheaper than a mega plan for participants.
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The Top Ten Frugal Fiduciary 401(k) Blogs of 2021

The Top Ten Frugal Fiduciary 401(k) Blogs of 2021

By: Eric Droblyen

December 22nd 2021

Our top 10 blogs for 2021 are must-reads for small business 401(k) sponsors and participants. They cover controlled groups, testing, and plan administration.
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401(k) Annual Administration - A Checklist for 2022

401(k) Annual Administration - A Checklist for 2022

By: Eric Droblyen

December 8th 2021

An important 401(k) fiduciary responsibility is ensuring plan administration tasks are completed timely each year. Our 2022 checklist makes this job easy.
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Small Business 401(k) Plans – How the Best Can Help You Retire Faster

Small Business 401(k) Plans – How the Best Can Help You Retire Faster

By: Eric Droblyen

November 24th 2021

Avoiding 401(k) pitfalls during your working years can help you retire years faster. The best small business plans make this job easy. Don't settle for less.
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Bundled or Unbundled 401(k) Provider – How to Choose

Bundled or Unbundled 401(k) Provider – How to Choose

By: Eric Droblyen

November 10th 2021

Bundled (or full-service) 401k providers deliver all of the major plan administration services, while unbundled providers must ally with other companies to do so.
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401(k) Fee Study: How Much Does a Fiduciary-Grade Advisor Cost?

401(k) Fee Study: How Much Does a Fiduciary-Grade Advisor Cost?

By: Eric Droblyen

October 27th 2021

Our fee study of 860 fiduciary-grade 401(k) financial advisors shows impartial advice reduces the total cost of a retirement plan. Employers should not settle for less.
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Employee Fiduciary Launches New 401(k) Fee Savings Calculator

Employee Fiduciary Launches New 401(k) Fee Savings Calculator

By: Eric Droblyen

October 13th 2021

Paying low 401(k) fees during your working years can mean dramatically higher savings in retirement. Our 401(k) fee calculator estimates how much higher.
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Proposed 5500 Reform Won’t Help 401(k) Fee Benchmarking

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

By: Eric Droblyen

September 29th 2021

401(k) fees can be impossible for plan fiduciaries and participants to compare apples-to-apples. Proposed Form 5500 changes will do little to help.
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GAO Recommends Much Needed 401(k) Fee Disclosure Reform

GAO Recommends Much Needed 401(k) Fee Disclosure Reform

By: Eric Droblyen

September 15th 2021

The GAO found 40% of plan participants do not understand the 401k fee information mandated by the DOL; recommends welcome fee disclosure reform.
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Could the FTC Save Consumers from Hidden 401(k) Fees?

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

By: Eric Droblyen

September 1st 2021

The Institute for Policy Integrity petitioned the Federal Trade Commission (FTC) to ban “hidden fees in all industries." They should start with hidden 401(k) fees.
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401(k) Fiduciary Liability Insurance – Factors that Raise Premiums

401(k) Fiduciary Liability Insurance – Factors that Raise Premiums

By: Eric Droblyen

August 4th 2021

Understanding the factors that increase the price of 401(k) fiduciary liability insurance coverage can help plan fiduciaries more easily avoid liability.
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How to Simplify Your 401k Admin with a Cycle 3 Plan Restatement

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

By: Eric Droblyen

July 21st 2021

Most 401(k) plans must be "restated" to reflect IRS-mandate Cycle 3 changes from August 1, 2020 to July 31, 2022. Here are some plan simplifications to consider.
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401(k) Plan Oversight - Understanding Your Fiduciary Hierarchy is Key

401(k) Plan Oversight - Understanding Your Fiduciary Hierarchy is Key

By: Eric Droblyen

July 7th 2021

As a business owner, you want to understand the basic fiduciary hierarchy applicable to all 401(k) plans and the responsibilities of each role within it.
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Preventing Identity Theft in a Retirement Program as an Employer

Preventing Identity Theft in a Retirement Program as an Employer

By: Eric Droblyen

July 1st 2021

Identity theft is a big problem with retirement plans. Learn the steps you can take to protect your participants.
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Lost Participants – What Employers Need to Know

Lost Participants – What Employers Need to Know

By: Eric Droblyen

July 1st 2021

One of the most frustrating issues plan sponsors run into is locating “lost” participants. Learn how to handle this issue in this quick read.
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Terminating Your Plan? Here’s What You Need to Know

Terminating Your Plan? Here’s What You Need to Know

By: Eric Droblyen

July 1st 2021

Learn about the process of terminating your 401(k) plan. Discover actions required, fully vesting participant accounts, IRS involvement, participant options & necessary last steps to avoid penalties.
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How to Select an Auditor for the Form 5500

How to Select an Auditor for the Form 5500

By: Eric Droblyen

July 1st 2021

Learn how to select the right 401k auditor, avoid costly mistakes, and ensure compliance with ERISA. Discover what qualities to look for, and where to find reputable auditors.
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Preventing Identify Theft in Your Retirement Plan

Preventing Identify Theft in Your Retirement Plan

By: Eric Droblyen

July 1st 2021

Identify theft is a big problem with retirement plans. Luckily there are steps you can take to prevent it. Learn more in this FAQ.
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401(k) Vesting Schedules – What They Are and How They Work

401(k) Vesting Schedules – What They Are and How They Work

By: Eric Droblyen

July 1st 2021

Learn everything you need to know about 401(k) vesting schedules in this short guide.
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Voluntary Contributions - Probably Not a Fit for Your 401(k) Plan

Voluntary Contributions - Probably Not a Fit for Your 401(k) Plan

By: Eric Droblyen

July 1st 2021

Voluntary 401(k) contributions are after-tax employee contributions like Roth deferrals, but subject to different ERISA rules.
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The ADP and ACP Tests - What You Need to Know

The ADP and ACP Tests - What You Need to Know

By: Eric Droblyen

July 1st 2021

Learn about the ADP & ACP tests – the two of the three main 401(k) nondiscrimination tests.
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How to Calculate Your All-In 401(k) Fee

How to Calculate Your All-In 401(k) Fee

By: Eric Droblyen

July 1st 2021

Learn step-by-step how to calculate the total 401(k) fee in this short, easy-to-read guide.
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401(k) Contribution Limits - What You Need to Know

401(k) Contribution Limits - What You Need to Know

By: Eric Droblyen

July 1st 2021

Discover the 2024 401(k) contribution limits for employees and employers. Learn about IRS-defined limits, catch-up contributions, and ADP/ACP test limits for HCEs.
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401(k) Fees - What You Need to Know About The 3 Major Categories

401(k) Fees - What You Need to Know About The 3 Major Categories

By: Eric Droblyen

July 1st 2021

The DOL places 401(k) fees into 3 major categories. Learn everything you need to know about each in this quick read.
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How to Reclaim Your Retirement Plan with a Previous Employer

How to Reclaim Your Retirement Plan with a Previous Employer

By: Eric Droblyen

July 1st 2021

Have a 401(k) with an old employer? Learn what to do in this easy-to-read guide.
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401(k) Rollovers – What Employers Need to Know

401(k) Rollovers – What Employers Need to Know

By: Eric Droblyen

July 1st 2021

Learn everything you need to know about allowing or managing rollovers in your retirement plan.
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401(k) Rollovers – Frequently Asked Questions

401(k) Rollovers – Frequently Asked Questions

By: Eric Droblyen

July 1st 2021

Is a 401(k) rollover right for you? Learn what you need to know in this quick guide.
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What to Do When Your Retirement Plan Terminates

What to Do When Your Retirement Plan Terminates

By: Eric Droblyen

July 1st 2021

Is your employer terminating your retirement plan? Learn what to do in this easy-to-read guide.
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The Top Heavy Test - What You Need to Know

The Top Heavy Test - What You Need to Know

By: Eric Droblyen

July 1st 2021

Learn everything you need to know about the Top Heavy Test – an important 401(k) nondiscrimination test.
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Vesting Schedules – Everything You Need to Know

Vesting Schedules – Everything You Need to Know

By: Eric Droblyen

July 1st 2021

As a 401(k) participant, understanding your vesting schedule is crucial. Learn what you need to know in this short guide.
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401(k) Rollovers - How to Evaluate Your Options

401(k) Rollovers - How to Evaluate Your Options

By: Eric Droblyen

June 23rd 2021

401(k)s and IRAs can offer wide-ranging investments, fees, and features. Making a bad rollover decision can set your retirement back years.
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401(k) Earned Income – What Employers Need to Know

401(k) Earned Income – What Employers Need to Know

By: Eric Droblyen

June 9th 2021

401(k) plans must allocate and test the contributions made to self-employed individuals using a special definition of plan compensation called earned income.
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Is Your Company Part of a Controlled Group?  You Need to Know or Risk 401(k) Plan Disqualification

Is Your Company Part of a Controlled Group?  You Need to Know or Risk 401(k) Plan Disqualification

By: Eric Droblyen

May 26th 2021

IRS controlled group rules often obligate 2 or more employers with common ownership to cover their employees with the same 401k plan in order to pass annual nondiscrimination testing.
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How Much Lower 401(k) Fees Can Grow Your Retirement Savings

How Much Lower 401(k) Fees Can Grow Your Retirement Savings

By: Eric Droblyen

May 12th 2021

Cost matters a LOT when saving for retirement. Even 401(k) fee small reductions today can mean much higher account balances for participants in retirement.
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401(k) Fee Study: 75% of Small Business Plans Pay Hidden Fees

401(k) Fee Study: 75% of Small Business Plans Pay Hidden Fees

By: Eric Droblyen

April 28th 2021

“Are my 401(k) fees too high?” is a common question asked by both plan sponsors and participants. Our small business fee study can give some perspective.
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Starting a 401(k)? A Short Initial Plan Year is Probably a Bad Idea

Starting a 401(k)? A Short Initial Plan Year is Probably a Bad Idea

By: Eric Droblyen

April 14th 2021

401(k) plans must define a plan year cycle for annual administration. Most new plans should avoid a short plan year for first year administration.
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Design a 401(k) Plan Like a Pro in 6 Steps

Design a 401(k) Plan Like a Pro in 6 Steps

By: Eric Droblyen

March 31st 2021

Expert 401(k) plan design can help small business owners meet their plan goals for thousands less. The process can be completed in 30 minutes or less.
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How to Lobby Your Employer for a Better 401(k) Plan

How to Lobby Your Employer for a Better 401(k) Plan

By: Eric Droblyen

March 17th 2021

401(k) plans with top investments and no admin fees can help you retire years sooner by delivering much higher returns. Here's how to lobby for such a plan.
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The Benefits of a 401(k) Plan for Employers and Employees

The Benefits of a 401(k) Plan for Employers and Employees

By: Eric Droblyen

March 3rd 2021

When a small business offers a 401(k) plan, it’s often a win-win for business owners and employees. Here are some of the top benefits of these plans.
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Want to Retire Early? Three 401(k) Features That Can Help

Want to Retire Early? Three 401(k) Features That Can Help

By: Eric Droblyen

February 17th 2021

For 401(k) participants to reach their retirement savings goal as soon as possible, they will need help from their plan. These are the features they'll need.
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401(k) Plan Restatements - Save Fees With These Amendments

401(k) Plan Restatements - Save Fees With These Amendments

By: Eric Droblyen

February 3rd 2021

Most 401(k) plans must be 'restated' to reflect IRS Cycle 3 (or 'post-PPA') changes from August 1, 2020 to July 31, 2022. Here are some amendments to include.
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401(k) Nondiscrimination Testing - Basics and Deadlines

401(k) Nondiscrimination Testing - Basics and Deadlines

By: Eric Droblyen

January 19th 2021

401(k) plans must pass nondiscrimination tests each year to confirm HCEs do not disproportionately benefit and that no IRS contribution limits are exceeded.
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'Hidden' 401(k) Fees – What Business Owners Need to Know

'Hidden' 401(k) Fees – What Business Owners Need to Know

By: Eric Droblyen

January 6th 2021

Hidden administration fees increase the cost of investing for 401(k) participants - reducing their returns. Here are the most common and how to uncover them.
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The Top Ten Frugal Fiduciary 401(k) Blogs of 2020

The Top Ten Frugal Fiduciary 401(k) Blogs of 2020

By: Eric Droblyen

December 23rd 2020

Our top 10 blogs for 2020 are must-reads for small business 401(k) sponsors and participants. They cover plan administration, features, fees and providers.
Read More
How to Find & Calculate Transamerica 401(k) Fees

How to Find & Calculate Transamerica 401(k) Fees

By: Eric Droblyen

December 17th 2020

Finding Transamerica 401k fees isn't easy. In this guide, we'll show you average Transamerica fees, then how to find & calculate them in your plan.
Read More
Pooled vs. Single-Employer 401(k) Plans - Are PEPs for You?

Pooled vs. Single-Employer 401(k) Plans - Are PEPs for You?

By: Eric Droblyen

December 9th 2020

Supporters claim Pooled Employer Plans (PEPs) offer lower 401k fees and greater liability protection than single-employer plans. They rarely deliver either.
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401(k) Reform – How to Make Plans More Transparent

401(k) Reform – How to Make Plans More Transparent

By: Eric Droblyen

November 11th 2020

401(k) plans should offer objective value for participants and straightforward fiduciary responsibilities for business owners. Often, they deliver neither.
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401(k) Fiduciary Outsourcing – Roles That MEPs Can Abuse

401(k) Fiduciary Outsourcing – Roles That MEPs Can Abuse

By: Eric Droblyen

October 28th 2020

Multiple-Employer 401k Plans (MEPs) require business owners to delegate fiduciary roles to their provider. This delegation makes MEPs highly prone to abuse.
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401(k) Retirement Planning – 4 Steps to Retire On-Time

401(k) Retirement Planning – 4 Steps to Retire On-Time

By: Eric Droblyen

October 14th 2020

Some basic retirement planning can dramatically reduce the cost of retirement for 401k participants. Our 4-step plan requires no investing knowledge at all.
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401(k) Investments - Options for Selecting a “Prudent” Menu

401(k) Investments - Options for Selecting a “Prudent” Menu

By: Eric Droblyen

September 30th 2020

Inappropriate investment selection is a top cause of 401(k) lawsuits today. This trouble can be easily avoided with some impartial investment guidance.
Read More
Paying 401(k) Admin Fees from Plan Assets Hurt Business Owners Most

Paying 401(k) Admin Fees from Plan Assets Hurt Business Owners Most

By: Eric Droblyen

August 19th 2020

Small business owners often have the most to gain personally by paying their 401k provider's administration fees from a bank account instead of plan assets
Read More
Roth vs. Traditional 401(k) Contributions – How to Choose

Roth vs. Traditional 401(k) Contributions – How to Choose

By: Eric Droblyen

August 5th 2020

If your 401(k) plan permits Roth deferrals, it can be worth your time to decide whether they're a better choice than traditional deferrals for your account.
Read More
The 5 Most Popular Small Business 401(k) Plan Features

The 5 Most Popular Small Business 401(k) Plan Features

By: Eric Droblyen

July 22nd 2020

Different 401(k) “types” (safe harbor, Roth, profit sharing, etc…) are in fact different contribution “features” that a plan can combine in numerous ways.
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How Much Time Does Annual 401(k) Administration Take?

How Much Time Does Annual 401(k) Administration Take?

By: Eric Droblyen

July 8th 2020

401(k) administration shouldn't take small businesses much time. A quality provider will do the heavy lifting, leaving an owner with basic tasks to complete.
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How to Find & Calculate MassMutual 401(k) Fees

How to Find & Calculate MassMutual 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding MassMutual's 401k fees isn't easy. In this guide, we'll show you average MassMutual fees, then how to find & calculate them in your plan.
Read More
How to Find & Calculate VOYA 401(k) Fees

How to Find & Calculate VOYA 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding VOYA's 401k fees isn't easy. In this guide, we'll show you average VOYA fees, then how to find & calculate them in your plan.
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How to Find & Calculate Principal 401(k) Fees

How to Find & Calculate Principal 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Principal's 401k fees isn't easy. In this guide, we'll show you average Principal fees, then how to find & calculate them in your plan.
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How to Find & Calculate American Funds 401(k) Fees

How to Find & Calculate American Funds 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding American Funds 401k fees isn't easy. In this guide, we'll show you average American Funds fees, then how to find & calculate them in your plan.
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How to Find & Calculate Ascensus 401(k) Fees

How to Find & Calculate Ascensus 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Ascensus 401k fees isn't easy. In this guide, we'll show you average Ascensus fees, then how to find & calculate them in your plan.
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How to Find & Calculate Paychex 401(k) Fees

How to Find & Calculate Paychex 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Paychex 401k fees isn't easy. In this guide, we'll show you average Paychex fees, then how to find & calculate them in your plan.
Read More
How to Find & Calculate Vanguard 401(k) Fees

How to Find & Calculate Vanguard 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Vanguard's 401k fees isn't easy. In this guide, we'll show you average Vanguard fees, then how to find & calculate them in your plan.
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How to Find & Calculate Fidelity 401(k) Fees

How to Find & Calculate Fidelity 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Fidelity 401k fees isn't easy. In this guide, we'll show you average Fidelity fees, then how to find & calculate them in your plan.
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How to Find & Calculate Empower 401(k) Fees

How to Find & Calculate Empower 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Empower 401k fees isn't easy. In this guide, we'll show you average Empower fees, then how to find & calculate them in your plan.
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How to Find & Calculate ADP 401(k) Fees

How to Find & Calculate ADP 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding ADP 401k fees isn't easy. In this guide, we'll show you average ADP fees, then how to find & calculate them in your plan.
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How to Find & Calculate Nationwide 401(k) Fees

How to Find & Calculate Nationwide 401(k) Fees

By: Eric Droblyen

June 30th 2020

Finding Nationwide's 401k fees isn't easy. In this guide, we'll show you average Principal fees, then how to find & calculate them in your plan.
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The DOL Finalizes New Electronic 401(k) Disclosure Rules

The DOL Finalizes New Electronic 401(k) Disclosure Rules

By: Eric Droblyen

June 24th 2020

The new DOL rule would allow employers to electronically deliver required 401(k) notices to all plan participants by e-mail or by posting them to a website.
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Lowering 401(k) Fees – Options for Sponsors and Participants

Lowering 401(k) Fees – Options for Sponsors and Participants

By: Eric Droblyen

June 10th 2020

Lowering 401(k) fees will increase the investment returns of plan participants dollar-for-dollar. Our guide can help plan sponsors and participants do that.
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How to Find & Calculate John Hancock 401(k) Fees

How to Find & Calculate John Hancock 401(k) Fees

By: Eric Droblyen

June 6th 2020

Finding John Hancock 401k fees isn't easy. In this guide, we'll show you average John Hancock fees, then how to find & calculate them in your plan.
Read More
401(k) vs SIMPLE IRA: Which is Right for Your Business?

401(k) vs SIMPLE IRA: Which is Right for Your Business?

By: Eric Droblyen

May 27th 2020

401(k) or SIMPLE IRA? The kind of plan you pick could have an enormous impact on the finances of everyone involved in your business. Choose wisely.
Read More
How to “Value” 401(k) Administration Services and Investments

How to “Value” 401(k) Administration Services and Investments

By: Eric Droblyen

May 13th 2020

To value your 401k provider, I recommend benchmarking their administration fees per capita and their investment fees based on returns. Our process can help.
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A “Rosetta Stone” for Finding 401(k) Provider Fees

A “Rosetta Stone” for Finding 401(k) Provider Fees

By: Eric Droblyen

April 29th 2020

When 401(k) fees are paid from plan assets, they reduce participant investment returns dollar-for-dollar. Find your 401(k) provider's fees using our guide.
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The CARES Act - 401(k) Participant Distribution and Loan Options

The CARES Act - 401(k) Participant Distribution and Loan Options

By: Eric Droblyen

April 15th 2020

Taking a CARES Act 401(k) distribution or loan can delay an individual's future retirement by years. Our overview can help weigh this difficult decision.
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COVID-19 – 401(k) FAQs for Business Owners and Plan Participants

COVID-19 – 401(k) FAQs for Business Owners and Plan Participants

By: Eric Droblyen

March 31st 2020

Many small business owners affected by COVID-19 want to know how to defray their 401(k) plan expenses or help workers tap their savings. Our FAQ can help.
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Safe Harbor 401(k) Plans: Answers To Common Questions

Safe Harbor 401(k) Plans: Answers To Common Questions

By: Brian Furgala

March 18th 2020

Safe harbor 401(k) plans are increasingly popular with small businesses. Our FAQ can help owners decide if one is right for their company.
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Index Funds Are Indisputably Prudent 401(k) Investments - How to Pick a Lineup

Index Funds Are Indisputably Prudent 401(k) Investments - How to Pick a Lineup

By: Eric Droblyen

March 4th 2020

Index funds from providers like Vanguard, Fidelity, or Schwab make it easy for employers to meet their investment-related 401(k) fiduciary responsibilities
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401(k) Investing – Professional Advice is Easy to Access Today

401(k) Investing – Professional Advice is Easy to Access Today

By: Eric Droblyen

February 19th 2020

To afford retirement as soon as possible, 401(k) participants must invest appropriately. Today's professional investment advice options make doing so easy.
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Don’t Let Your 401(k) Provider Hide the Cost of Your Plan

Don’t Let Your 401(k) Provider Hide the Cost of Your Plan

By: Eric Droblyen

February 5th 2020

401(k) providers can charge different fees for comparable services and investments. To avoid excessive fees, employers must know the cost of their plan.
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401(k) Testing – Deadlines Employers Should Know

401(k) Testing – Deadlines Employers Should Know

By: Eric Droblyen

January 22nd 2020

While a professional TPA usually completes 401k testing, employers must understand the deadlines that apply to test corrections and contribution deposits.
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The SECURE Act of 2019 – An Analysis of Key 401(k) Changes

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

By: Eric Droblyen

January 8th 2020

The SECURE Act of 2019 is the most extensive retirement plan legislation in over a decade. 401k sponsors and participants must understand its key changes.
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The Top Ten Frugal Fiduciary 401(k) Blogs of 2019

The Top Ten Frugal Fiduciary 401(k) Blogs of 2019

By: Eric Droblyen

December 25th 2019

Our top 10 blogs of 2019 are must-reads for small business 401(k) sponsors and participants. They cover plan administration, features, fees, and providers.
Read More
401(k) Administration Checklist for the 2020 Plan Year

401(k) Administration Checklist for the 2020 Plan Year

By: Eric Droblyen

December 11th 2019

An important 401(k) fiduciary responsibility is ensuring plan administration tasks are completed timely each year. Our checklist makes this job easy.
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How to Attribute Family Ownership When 401(k) Plan Testing

How to Attribute Family Ownership When 401(k) Plan Testing

By: Eric Droblyen

November 27th 2019

Under the 401(k) family attribution rules, individuals are attributed the ownership of family members. These rules can greatly affect plan test results.
Read More
The DOL Proposes New Electronic 401(k) Disclosure Rules

The DOL Proposes New Electronic 401(k) Disclosure Rules

By: Eric Droblyen

November 13th 2019

The proposal would allow employers to electronically deliver 401(k) disclosures to plan participants by posting them to a website. This reform is overdue.
Read More
How MEPs Signal a Broken 401(k) Industry

How MEPs Signal a Broken 401(k) Industry

By: Eric Droblyen

October 30th 2019

Multiple Employer Plans (MEPs) are better for the 401(k) industry than retirement plan savers and sponsors. Small business owners should avoid them.
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3 Warning Signs Your 401(k) Provider is Ripping You Off

3 Warning Signs Your 401(k) Provider is Ripping You Off

By: Eric Droblyen

October 16th 2019

If you’re a business owner, you must know how much your 401(k) plan costs because the consequences for paying excessive fees are high.
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401(k) Fees - Rules for Allocating Among Plan Participants

401(k) Fees - Rules for Allocating Among Plan Participants

By: Eric Droblyen

October 2nd 2019

Employers have a fiduciary responsibility to allocate 401(k) fees among plan participants equitably. This job can be easy with some basic education.
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401(k) Amendment Rules – Strict, but (Mostly) Straightforward

401(k) Amendment Rules – Strict, but (Mostly) Straightforward

By: Eric Droblyen

September 18th 2019

The Internal Revenue Service has strict rules for amending 401(k) plan documents. To stay out of trouble, employers should understand some amendment basics.
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Steps for Reducing the Out-of-Pocket Cost of Retirement

Steps for Reducing the Out-of-Pocket Cost of Retirement

By: Eric Droblyen

September 4th 2019

A simple plan can dramatically reduce the cost of retirement for 401(k) participants. Investing knowledge is not required to follow the plan.
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Traditional Safe Harbor 401(k) Plan vs. QACA – How to Choose

Traditional Safe Harbor 401(k) Plan vs. QACA – How to Choose

By: Eric Droblyen

August 21st 2019

There are two basic types of safe harbor 401(k) plans available today – traditional and QACA. Business owners should understand their differences.
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401(k) Fee Study: What Does a Fiduciary-Grade Advisor Cost?

401(k) Fee Study: What Does a Fiduciary-Grade Advisor Cost?

By: Eric Droblyen

August 7th 2019

Our fee study of 753 fiduciary-grade financial advisors shows impartial advice reduces the total cost of a 401(k) plan. Employers should not settle for less.
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Revenue Sharing - 5 Reasons for 401(k) Fiduciaries to Avoid it

Revenue Sharing - 5 Reasons for 401(k) Fiduciaries to Avoid it

By: Eric Droblyen

July 24th 2019

Revenue sharing makes it harder than necessary to meet 401(k) fiduciary responsibilities. Employers should pay direct 401(k) fees instead.
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The SPIVA Scorecard – A Must-Read for 401(k) Fiduciaries

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

By: Eric Droblyen

July 10th 2019

The SPIVA Scorecard measures the percentage of active funds that outperform their market benchmark over specific periods of time, net of fees. Most don't.
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Switching 401(k) Providers? What to Expect and Pitfalls to Avoid

Switching 401(k) Providers? What to Expect and Pitfalls to Avoid

By: Eric Droblyen

June 26th 2019

To lower your 401k fees, you may need to replace your plan provider. This move can seem daunting until you understand the process and the pitfalls to avoid.
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Employers Must Avoid 401(k) Providers They Can't Understand

Employers Must Avoid 401(k) Providers They Can't Understand

By: Eric Droblyen

June 12th 2019

Avoiding 401k fiduciary liability can be easy. You just need a basic understanding of your fiduciary responsibilities and an easy-to-monitor plan provider.
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The SECURE Act and RESA - the Good, the Bad, and the Ugly

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

By: Eric Droblyen

May 29th 2019

Congress wants to expand workplace retirement plan coverage. The SECURE Act and RESA aim to do that. They offer 401(k) reform, but won't expand coverage.
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401(k) Rollovers: When One is in Your Best Interest

401(k) Rollovers: When One is in Your Best Interest

By: Eric Droblyen

May 15th 2019

After leaving a job, you must decide what to do with your 401(k) account. A rollover may or may not be in your best interest. Here's how to decide.
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401(k) Mutual Funds – Pay Attention to Share Class!

401(k) Mutual Funds – Pay Attention to Share Class!

By: Eric Droblyen

May 1st 2019

Mutual funds are often available in multiple share classes. To serve the best interest of 401k participants, the least expensive share class should be used.
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It's Too Easy to Conceal 401k Fees – We Need 408b-2 Reform

It's Too Easy to Conceal 401k Fees – We Need 408b-2 Reform

By: Eric Droblyen

April 17th 2019

Fidelity is being accused of charging excessive, undisclosed 401(k) fees. Other providers obfuscate fees in 408b-2 disclosures. It's time for reform.
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401(k) Investment Advice – Pros and Cons of the 3 Basic Forms

401(k) Investment Advice – Pros and Cons of the 3 Basic Forms

By: Eric Droblyen

April 3rd 2019

401(k) participants can receive professional investment advice from a mutual fund, financial advisor, or algorithm today. Each advice form has pros and cons
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Small Business 401(k) Plan Design Study: What 3,975 401(k) Plans Are Doing

Small Business 401(k) Plan Design Study: What 3,975 401(k) Plans Are Doing

By: Eric Droblyen

March 20th 2019

The right 401(k) plan design can help a small business meet plan goals at the lowest possible cost. Our study summarizes the designs of 3,975 401(k) plans
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Safe Harbor or Traditional 401(k) Plan – How to Decide

Safe Harbor or Traditional 401(k) Plan – How to Decide

By: Eric Droblyen

March 6th 2019

Safe harbor 401(k) plans are the most popular type of 401(k) used by small businesses today, but they are not the best fit for every small business.
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Hardship 401(k) Distributions – Frequently Asked Questions

Hardship 401(k) Distributions – Frequently Asked Questions

By: Eric Droblyen

February 20th 2019

At first blush, the 401(k) hardship distribution rules can seem overwhelming. In truth, most can be understood with some basic education. Our FAQ can help.
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Applying Jack Bogle’s Guiding Principle to 401(k) Provider Fees

Applying Jack Bogle’s Guiding Principle to 401(k) Provider Fees

By: Eric Droblyen

February 6th 2019

Jack Bogle's guiding principle was simple - costs matter. 401(k) participants should apply the same principle to 401(k) provider fees paid by their account.
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How Compound Interest and Dollar Cost Averaging Reduce the Cost of Retirement

How Compound Interest and Dollar Cost Averaging Reduce the Cost of Retirement

By: Eric Droblyen

January 23rd 2019

Saving for retirement can seem futile when you can't afford to contribute much to a 401(k) plan. Compound interest and dollar cost averaging can help.
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401(k) Contribution Deadlines – You Don’t Want to Miss Them!

401(k) Contribution Deadlines – You Don’t Want to Miss Them!

By: Eric Droblyen

January 9th 2019

When 401(k) contributions - employee or employer - are deposited late, there are consequences for employers. With some education, they are easily avoided.
Read More
The Top Ten Frugal Fiduciary 401(k) Blogs of 2018

The Top Ten Frugal Fiduciary 401(k) Blogs of 2018

By: Eric Droblyen

December 26th 2018

Our top 10 blogs for 2018 are must-reads for small business 401(k) sponsors and participants. They cover plan administration, features, fees and providers.
Read More
2018 Small Business 401(k) Fee Study – What’s Too High?

2018 Small Business 401(k) Fee Study – What’s Too High?

By: Eric Droblyen

November 28th 2018

Are my 401(k) fees too high?” is a common question asked by both plan sponsors and participants. Our small business fee study can give some perspective.
Read More
Calculating American Funds 401(k) Fees Using Their 408b-2

Calculating American Funds 401(k) Fees Using Their 408b-2

By: Eric Droblyen

October 31st 2018

American Funds is one of the largest 401k providers in the nation. Their 408b-2 fee disclosure is also one of the worst. Here are steps for deciphering it.
Read More
Apathy is the #1 Source of 401(k) Liability – It’s Easy to Avoid

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

By: Eric Droblyen

October 17th 2018

401(k) fiduciary responsibilities are manageable once they’re understood. The problem is many small businesses don’t make the effort.
Read More
TSP-like 401(k)s + Tax Credits = More Small Business Plans

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

By: Eric Droblyen

October 3rd 2018

Multiple Employers Plans (MEPs) are promoted as a way to expand small business retirement coverage. TSP-like 401ks and tax credits would do a better job
Read More
How Trump’s Executive Order on Retirement Plans Falls Short

How Trump’s Executive Order on Retirement Plans Falls Short

By: Eric Droblyen

September 19th 2018

Multiple Employer 401(k) Plans (MEPs) are not the answer for expanding small business retirement plan coverage. Other reforms would be more effective.
Read More
How to Total Paychex 401(k) Fees Using Their 408b-2 Disclosure

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

By: Eric Droblyen

September 5th 2018

Paychex is one of the largest 401(k) providers in country. Their 408b-2 fee disclosure is also one of the worst. Here are 3 steps for deciphering it.
Read More
Calculating ADP 401(k) Fees Using Their 408b-2 Disclosure

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

By: Eric Droblyen

August 22nd 2018

ADP is one of the largest 401(k) providers in country. Their 408b-2 fee disclosure is also one of the worst. Here are 3 steps for deciphering it.
Read More
Guidelines for Benchmarking 401(k) Admin and Investment Fees

Guidelines for Benchmarking 401(k) Admin and Investment Fees

By: Eric Droblyen

August 8th 2018

Employers have a fiduciary responsibility to pay reasonable fees for 401k plan administration and investments. This job can be easy using simple guidelines.
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401(k) Participant Disclosures - What Employers Need to Know

401(k) Participant Disclosures - What Employers Need to Know

By: Eric Droblyen

July 25th 2018

401k plans have complicated participant disclosure rules. However, the plan sponsor's role in meeting them is basic when a qualified 401k provider is used.
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401(k) Fee Levelization – It Can Make Revenue Sharing Worse!

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

By: Eric Droblyen

July 11th 2018

401k providers claim "fee levelization" makes revenue sharing payments more transparent and fair. In truth, the complicated process can do the opposite.
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401(k) Fidelity Bonds – Frequently Asked Questions

401(k) Fidelity Bonds – Frequently Asked Questions

By: Eric Droblyen

June 27th 2018

An ERISA fidelity bond protects 401(k) plan participants against losses caused by acts of fraud or dishonesty. Employers should understand their basics.
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401(k) Matching Contributions – What Employers Need to Know

401(k) Matching Contributions – What Employers Need to Know

By: Eric Droblyen

June 13th 2018

401k matching contributions can be highly effective in motivating workers to save for retirement. Small businesses should understand their match options.
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Four 401(k) Plan Services That Justify Higher Provider Fees

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

By: Eric Droblyen

May 30th 2018

To avoid 401k fiduciary liability for paying excessive fees, pay as little as possible for “commodity” 401k services and extra for “value-added” ones only.
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Solo 401(k) Plans – Their Benefits to Self-Employed Workers

Solo 401(k) Plans – Their Benefits to Self-Employed Workers

By: Eric Droblyen

May 16th 2018

Solo - or individual - 401k plans cover business owners and their spouses only. They allow plan participants to make maximum deductible contributions – including “mega back door” Roth IRA contributions – up to the 415 limit.
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3 Common 401(k) Provider Conflicts of Interest!

3 Common 401(k) Provider Conflicts of Interest!

By: Eric Droblyen

May 2nd 2018

Employers have a fiduciary responsibility to evaluate their 401(k) provider's conflicts of interest. They risk personal liability when they don't.
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401(k) Plan Coverage Testing – What Employers Need to Know

401(k) Plan Coverage Testing – What Employers Need to Know

By: Eric Droblyen

April 18th 2018

The IRC section 410(b) coverage test ensures a 401(k) plan sufficiently covers Non-Highly Compensated Employees. Employers should understand its basics.
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Department of Labor Guidance for Paying 401(k) Fees from Plan Assets

Department of Labor Guidance for Paying 401(k) Fees from Plan Assets

By: Eric Droblyen

April 4th 2018

The DOL divides 401(k) fees into two categories – administrative and settlor expenses. Employers can only pay administrative expenses from plan assets
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Unpacking the Complex Web of Insurance Company 401(k) Fees

Unpacking the Complex Web of Insurance Company 401(k) Fees

By: Eric Droblyen

March 21st 2018

All insurance company 401(k) providers - including John Hancock, Empower, Voya, Principal – charge hidden fees. Plan fiduciaries must be able to evaluate them.
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The 401(k) Form 5500 – Frequently Asked Questions (FAQ)

The 401(k) Form 5500 – Frequently Asked Questions (FAQ)

By: Eric Droblyen

March 7th 2018

The Form 5500 discloses 401(k) plan information to the Federal government and plan participants. Employers must understand their plan's filing requirements.
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401(k) Plan Compensation – What Employers Need to Know

401(k) Plan Compensation – What Employers Need to Know

By: Eric Droblyen

February 21st 2018

A 401k plan can require multiple definitions of employee compensation. To keep their plan in legal compliance, employers must understand all of them.
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401(k) Admin Fees – The Benefits to Business Owners That Pay Them

401(k) Admin Fees – The Benefits to Business Owners That Pay Them

By: Eric Droblyen

January 24th 2018

Small business owners earn four valuable benefits when they pay their 401k administration fees from a corporate bank account instead of plan assets.
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Are Profit Sharing Contributions Right for Your 401(k) Plan?

Are Profit Sharing Contributions Right for Your 401(k) Plan?

By: Eric Droblyen

January 10th 2018

Pro rata, permitted disparity, and new comparability are types of 401k profit sharing contributions. Employers should know if they’re right for their plan.
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The Top Ten Frugal Fiduciary 401(k) Blogs of 2017

The Top Ten Frugal Fiduciary 401(k) Blogs of 2017

By: Eric Droblyen

December 27th 2017

Our top 10 blogs for 2017 are must-reads for small business 401k sponsors and participants. They cover retirement plan features, fees and 401k providers.
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Why Multiple Employer 401(k) Plans are Obsolete Today

Why Multiple Employer 401(k) Plans are Obsolete Today

By: Eric Droblyen

December 13th 2017

Supporters of Multiple Employer Plans (MEPs) claim these 401ks lower plan fees and fiduciary liability for small businesses. Neither claim is true.
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Worried Your 401(k) Pays Hidden Fees? Answer 2 Questions to Find Out

Worried Your 401(k) Pays Hidden Fees? Answer 2 Questions to Find Out

By: Eric Droblyen

November 29th 2017

Employers have a fiduciary responsibility to pay only reasonable fees from 401k plan assets. Avoid hidden 401k fees to make this job as easy as possible.
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3-Step Guide for Employers to Select and Monitor 401(k) Index Funds

3-Step Guide for Employers to Select and Monitor 401(k) Index Funds

By: Eric Droblyen

November 1st 2017

Index funds make it possible for 401(k) plan sponsors to replace an Investment Policy Statement (IPS) with a 3-step fund selection and monitoring process.
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Top 10 401(k) Mistakes Found in the IRS Voluntary Compliance Program

Top 10 401(k) Mistakes Found in the IRS Voluntary Compliance Program

By: Eric Droblyen

October 18th 2017

Severe consequences can result when a 401(k) plan fails to meet one or more of the plan qualification requirements – including IRS penalties for the employer.
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401(k) Cybercrime – Key to Keeping a Plan Safe Is Not Delegating Fiduciary Responsibilities

401(k) Cybercrime – Key to Keeping a Plan Safe Is Not Delegating Fiduciary Responsibilities

By: Eric Droblyen

September 20th 2017

Some employers delegate fiduciary roles that approve cash disbursements to their 401(k) provider, which can make a 401(k) plan more vulnerable to cybertheft.
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Employers Should Avoid Providers That Treat 401(k) Plans Like a Product, Not a Service

Employers Should Avoid Providers That Treat 401(k) Plans Like a Product, Not a Service

By: Eric Droblyen

September 6th 2017

Insurance and mutual fund companies treat 401k plans like a product by restricting fund and plan design options. Plan Sponsors need impartial and consultative advice instead
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A Common Sense 401(k) Plan for Small Businesses

A Common Sense 401(k) Plan for Small Businesses

By: Eric Droblyen

August 23rd 2017

TSP-like 401(k) plans are a common sense retirement plan but are not meant for everyone. Compare traditional 401(k) services against a TSP baseline here.
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401(k) Loan Rules – What Plan Participants Need to Know

401(k) Loan Rules – What Plan Participants Need to Know

By: Eric Droblyen

August 9th 2017

If you are a 401(k) participant, use our FAQ to understand when you can take a loan from your account and how to avoid taxes or penalties.
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403(b) vs. 401(k) Plans for Non-Financial People

403(b) vs. 401(k) Plans for Non-Financial People

By: Holly Roussel-Godfrey

July 26th 2017

These two big differences are truly all you need to know when deciding between a 403(b) or 401(k) plan – their eligibility and testing requirements.
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Expanding Small Biz Retirement Plan Coverage – 401(k) Reforms Are Needed

Expanding Small Biz Retirement Plan Coverage – 401(k) Reforms Are Needed

By: Eric Droblyen

July 12th 2017

Americans save more for retirement when they can do so by payroll deduction, but less than half of small businesses sponsor a retirement plan.
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Are Your 401(k) Fees “Reasonable?”  Benchmark Them to Find Out

Are Your 401(k) Fees “Reasonable?”  Benchmark Them to Find Out

By: Eric Droblyen

June 28th 2017

Small businesses have a fiduciary responsibility to pay only reasonable 401k fees, but "reasonable" is not defined. Benchmarking 401(k) providers and industry averages is the key to confirming 401k fee reasonableness.
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The DOL Fiduciary Rule – What Employers Need to Know

The DOL Fiduciary Rule – What Employers Need to Know

By: Eric Droblyen

June 14th 2017

What small businesses need to know about the DOL’s Fiduciary Rule is basic: their advisor receives commissions that can increase 401(k) plan sponsor liability.
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401(k) Distribution Rules – Frequently Asked Questions

401(k) Distribution Rules – Frequently Asked Questions

By: Eric Droblyen

May 31st 2017

401(k) plans have restrictive distribution rules which are tied to your age and employment status. Use our FAQ to understand these rules.
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Acquisition or Merger? Don’t Overlook the Seller’s 401(k) Plan!

Acquisition or Merger? Don’t Overlook the Seller’s 401(k) Plan!

By: Eric Droblyen

May 17th 2017

After acquiring a company with a 401(k), there 3 options for the plan - merge it into their own plan, keep it stand-alone, or terminate it.
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