401k plan investment options must be carefully assigned and monitored.
I. Choice of pooled or participant-directed investments. Some factors that should be considered are:
B. Will participant-directed accounts (in accordance with Section 404(c) of ERISA ) substantially reduce an employer's fiduciary concerns?
C. Will 401k investment and administrative costs be significantly reduced using a pooled approach?
B. Will participation be substantially reduced if a pooled approach is used?
2. For participant-directed accounts, should selections be limited to certain mutual (or other) funds offered by one organization?
3. How should investments be chosen when they are pooled?
2. Did the employer attempt to reduce costs by the following methods?
B. Changing investment providers. Have proper cost comparisons been made between the current and proposed providers?
C. Shifting investment costs to employees. Has the effect of adverse employee reaction been considered?
2. Have investment charges levied against participant accounts in participant-directed 401k plans been properly explained?
Please describe your 401k questions on our short form. We will reply promptly to concerns of employers and their representatives. Or call us at 718-793-9885. Our web site homepage contains additional useful 401k information.