401k Plan Fees

I recently read about the U.S Department of Labor’s audit of 401k plans. Why are such audits conducted and do they make any difference to my small business’s 401k plan-? Susan J. Lin, Windom, MN 56101, runs a dress designing outfit from home.

The U.S Labor department audits 401k plans to make sure that they are being operated in such a way that the participants are really benefitted. These audits do help 401k participants or employers like you who offer these plans in their small business for their employees. That’s because audits make sure the 401k plans offered by various providers are in line with certain standards that are designed with the participant’s needs in mind.

One very significant way in which an audit can help you is that it eliminates the incorporation of hidden fees into the plans. Many providers include such costs in the plan but do not disclose these in clear terms when the plan is established. As a result the participants may end up paying several hundreds of dollars through the plan’s life without even knowing it. The participant’s saving potential is reduced to this extent. An audit of the 401k plan reveals these costs and helps make employees and employers like you aware of the potential hidden fees that you may be paying for the plan.

If you would like to have more control over your 401k plan and keep the costs to the minimum possible you could opt for a 401K DIY suite like the one offered by http://smallbusiness401k.com/. Such suites let you establish the plan by yourself, manage it with ease and carry out monthly updations without depending on external help. Getting familiar with such plans is not a challenging task at all because these are designed to be user friendly. Once you have familiarized yourself with the way the software works, it should take you just a few minutes each month to have your records up to date.

About Elliot Earl, Director, Pension Trade Association
Director, Pension Trade Association Founded in 1982, the Pension Trade Association [California Domestic Nonprofit Corporation #C1629080] is dedicated to helping workers save for their retirement through expanded coverage of 401k -type defined contribution pension plans.

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