401k Cost Control Checklist

The control of 401k costs involves internal and external 401k expenses in addition to 401k employer contributions.

I. 401k Internal Expenses (i.e., compensation to employees)

    1. Analysis and control

    2. Use of outside 401k consultants, when feasible.

II. 401k External Expenses (outside 401k service providers)

    1. 401k Design Expenses

    2. 401k Administration Expenses

      A. Administration

      B. Compliance

      C. Reporting

    3. 401k Recordkeeping Expenses

    4. 401k Investment Expenses

      A. Money management fees

      B. Loads-front end and back-end

      C. Management expense fees-investment management and operating expenses

      D. Transaction fees

      E. Mortality risk charges

      F. Contract fees charged by many insurance companies and wraparound fees charged by many mutual funds.

      G. Trust fees

      H. Investment consulting fees

    5. 401k Employee Communication Expenses

      A. Enrollment

      B. Education, including investment of 401k funds

    401k Plan Further Assistance

If you have 401k questions or need assistance, please complete our short form. We will reply promptly to 401k concerns of employers and their 401k representatives. Or call us at 718-793-9885. Our web site homepage contains additional useful 401k information.

 

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